William Eichler 13 August 2025

Councils need more funding and powers to save bus services, MPs say

Councils need more funding and powers to save bus services, MPs say image
A stagecoach bus in Portsmouth Seadog81 / Shutterstock.com

More funding and powers should be given to local authorities to better protect and improve declining local bus services, MPs have said.

A report by the House of Commons' Transport Committee welcomed the Government’s Bus Services Bill but said ministers should ‘go further to get bums back on seats.’

Department for Transport (DfT) data shows that the number of bus journeys taken in England outside of London fell by 21.7% between 2009 and 2024.

Franchising: An Unlikely ‘Silver Bullet’

The Government’s focus on franchising, where councils oversee services provided by private bus operators, was not practical everywhere because many local authorities had been ‘hollowed-out’, according to the committee.

‘Franchising works for London and Manchester but is unlikely to be a silver bullet for the rest of the country. Many local councils’ workforces now lack the skills and capacity to suddenly start overseeing bus services,’ said the committee chair Ruth Cadbury MP.

Five-Year Funding Settlements

The Transport Committee also called for five-year funding settlements to give the sector ‘greater financial certainty’ and recommended that grants should be weighted towards rural areas.

It also said that a portion of the funding should be ringfenced to help protect ‘socially necessary services.’

Local Government Reactions

A spokesperson for the Local Government Association (LGA) said the challenges facing public transport were ‘significant’, and to increase the number of bus journeys taken ‘there needs to be sufficient, simplified and long-term funding.’

Cllr Peter Thornton, Transport Spokesperson for the County Councils Network, said: ‘We support the Transport Committee’s calls for greater investment into the areas that require it the most, including a rural weighting. This will be especially true of the Government’s plan to ask councils to identify “socially necessary” routes – only a fairer and larger proportion of money will allow county and unitary councils to genuinely protect routes.’

‘Decades of Decline’

According to the Health Foundation, public funding for bus services fell from 2009/2010 for a decade until the Covid pandemic when it almost doubled. In 2023/24 the public subsidy returned to a similar level as in 2017/18.

A Department for Transport spokesperson said: ‘After decades of decline, we’re providing a record £1bn in multi-year funding to improve the reliability and frequency of bus services across the country.

‘Our landmark Bus Services Bill will protect routes and prevent services from being scrapped – bringing buses back into local control and will put passengers at the heart of services. We have also stepped in to prevent a fare hike for passengers by extending the £3 fare cap until March 2027.

‘Better buses are central to the Government’s Plan for Change— connecting communities, strengthening the local economy, and boosting access to jobs.’

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