HomeBussinessUK Government Allocates £1 Billion in Bus Funding

UK Government Allocates £1 Billion in Bus Funding

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The UK government has detailed how 1 billion GBP of recently announced funding will be allocated to local authorities and bus operators across England.

This funding aims to improve bus services across the nation by addressing long-standing disparities and ending the “postcode lottery” in bus availability, ensuring that urban centres, rural areas, and underserved regions all benefit from more reliable and accessible services.

Specifically, 955 million GBP has been allocated until 2026. 712 million GBP will bedistributed to local authorities to enhance services, while 243 million GBP will support bus operators to keep fares low and maintain service frequency.

This funding complements 150 million GBP already committed to fare caps and an additional 200 million GBP announced for City Region Sustainable Transport Settlements.

As part of the investment, a 3 GBP maximum single fare cap will remain in place until December 2025, rising from the current 2 GBP cap.

Transport Secretary Louise Haigh said:

Buses are the lifeblood of communities, but the system is broken. Too often, passengers are left waiting hours for buses that don’t turn up – and some have been cut off altogether.

That’s why we’re reforming funding to deliver better buses across the country and end the postcode lottery of bus services. And it’s why we’re providing over £1bn of funding to keep fares down, protect local routes and deliver more reliable services.

Included in the allocations, large urban areas such as South Yorkshire (£17 million) and Liverpool City Region (£21 million) will see significant funding to sustain their networks. Meanwhile, rural counties like Lancashire (£27 million), Kent (£23 million), Essex (£17 million), and Norfolk (£15 million) will use funds to maintain lifeline routes.

The full list of allocations can be found here.

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