Better buses, more services: £3 billion boost for millions of passengers
Source: gov.uk (2025-12-05)

Multi-year funding gives local authorities the funds they need to provide passengers with lower fares, more frequent and reliable services and safer journeys.

- after years of decline, better buses are on the way - billions of funding will support local authorities across the country, improving journeys for millions of passengers
- multi-year funding will give councils the long-term certainty they have called for
- services will be cheaper and more reliable so more people can better access jobs and opportunities, growing the economy
Millions of passengers across the UK are set to benefit from faster, cheaper and more reliable buses after the government announces a £3 billion boost for services and infrastructure.

Multi-year funding will give councils the freedom to spend their allocations in whatever way they see fit, whether it is lowering the prices of fares, introducing new routes and zero emission buses or creating safer bus stops.

See local authority bus grant (LABG) allocations (https://www.gov.uk/government/publications/local-authority-bus-grant-allocations) for more information.

For years, local authorities have been held back from making long-term investments, but multi-year settlements will finally give the much-needed certainty to develop and drive forward plans that cater to the needs of their communities.

This landmark funding follows the Bus Services Act (https://www.legislation.gov.uk/en/ukpga/2025/24/contents) becoming law in October 2025, which for the first time gave local authorities the power to run local services how they see fit and provides greater protection to socially necessary routes.

Transport Secretary, Heidi Alexander, said:

After years of decline, better buses are finally on the way. Our £3 billion investment will give local authorities the long-term funding they need to deliver lower fares, more frequent services and the reliable transport that communities depend on.

We’ve already extended the £3 bus fare cap to help people with their everyday journeys and now we’re backing this with the funding councils need to transform their local services.

This is part of our wider plan to make public transport cheaper across the country – we’ve frozen rail fares for the first time in 30 years and we’re building Great British Railways to deliver better value for passengers.

Whether it’s the bus to work, the train to see family, or getting to a hospital appointment, affordable transport is essential to bearing down on the cost of living and growing our economy.

Minister for Roads and Buses, Simon Lightwood, said:

For too long, passengers have been let down by unreliable services, sub-standard bus stations and over a decade of routes being cut.

This £3 billion boost will change this, providing passengers with lower fares, more frequent and reliable services and safer journeys – helping both ease the cost of living and making it easier for people to get to work, hospital appointments and social plans, boosting the economy.

The allocations bring together various bus funding streams into one source. Almost £700 million of funding will be allocated to local authorities every single year up to 2028 to 2029 and can be spent however they want.

It means local leaders, rather than Whitehall, will decide how bus services should be run, continuing the government’s commitment to ensuring services are run for people, not profit.

This will be to help mayoral combined authorities with the costs of franchising their bus services, a model which has already seen success in areas like Greater Manchester with its Bee Network.

Graham Vidler, CEO of the Confederation of Passenger Transport, said:

The time for buses is now. With multi-year funding finally in place, local transport authorities must get moving and invest in what matters most to passengers: more buses, faster buses and more reliable buses. Operators stand ready to work closely with authorities across the country to turn this funding into real improvements for the communities we serve.

Lydia Horbury, CEO Bus Users UK, said:

Passengers have faced years of cuts and uncertainty, so long-term funding for buses is extremely welcome. Giving local authorities the stability to plan ahead and invest in the services their communities rely on is essential if we’re to reverse decline and rebuild confidence in bus travel.

We particularly welcome the flexibility for authorities to prioritise what matters most to passengers, whether that’s lower fares, more frequent services, zero emission buses or safer, more accessible infrastructure.

To deliver meaningful change, it’s vital that this funding translates into buses that are reliable, inclusive and designed around the needs of every passenger. We look forward to working with local authorities and operators to help make that a reality.

Jason Prince, Director of the Urban Transport Group, said:

This funding emphasises the importance of bus as the backbone of our local transport networks. The multi-year settlement and the additional Bus Franchising Fund is an endorsement of transport devolution, providing local leaders with the certainty they need to plan and invest in better bus services to meet the needs of local communities.

The package represents a continued commitment to improving bus services and delivering on the ambitions of the Bus Services Act.

Alongside this multi-year funding, and following the start of the bus franchising pilots across the UK, the government is also announcing a £3 million Bus Franchising Fund.

Today’s (5 December 2025) announcement is part of the government’s wider commitment to making public transport cheaper and more reliable, bearing down on the cost of living for working people.

Freezing rail fares for the first time in 30 years will save commuters on more expensive routes more than £300 per year, meaning they keep more of their hard-earned cash.

The government is also reforming the railways through Great British Railways, which will bring fares and ticketing into the 21st century with tap-in-tap-out and digital ticketing, delivering better value for money for passengers.

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