£3 billion for busses

The government has announced a £3 billion boost for bus services and infrastructure.

The multi-year funding will give councils the opportunity to spend the money how they see fit. This could be lowering the prices of fares, introducing new routes and zero emission buses or creating safer bus stops.

The funding follows the Bus Services Act becoming law in October 2025, which gave local authorities the power to run local services how they see fit and provides greater protection to socially necessary routes.

The allocations will 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.

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."

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."