Joe Lepper 05 December 2025

Government announces £3bn funding for councils to improve bus services

Government announces £3bn funding for councils to improve bus services image
© Philip Brookes / Shutterstock.com.

The Government has announced £3bn funding to support local authorities to improve bus services.

The package of funding will see councils allocated almost £700m of funding each year until 2028-29.

Roads and buses minister Simon Lightwood said the funding will provide ‘passengers with lower fares, more frequent and reliable services and safer journeys’.

Transport secretary Heidi Alexander added that the funding follows ‘years of decline’ in bus provision and gives councils funding to provide ‘reliable transport that communities depend on’.

The funding has been welcomed by Local Government Association (LGA) inclusive growth committee chair, Tom Hunt.

‘Local knowledge means councils can decide on the mix of improvements to routes, fares and frequencies that will get more people by bus to schools, jobs, doctors appointments and shops,’ he said.

However, he added that councils ‘will wait for further details about this funding to know how it compares to other years accurately’.

The LGA also awaits more information on how the Government intends to tackle a funding gap in the mandatory concessionary fares scheme.

Analysis from the local government body in 2023 found that due to a lack of Government funding, councils had to spend £452m to provide this concessionary travel to residents.

Additionally, the Government is introducing a £3m Bus Franchising Fund to help local government with the cost of franchising services.

The funding follows the Bus Services Act becoming law in October, which gave councils the power to run local services.

The Government says this ‘provides greater protection to socially necessary routes’.

LocalGov Weekly Round Up image

LocalGov Weekly Round Up

A pivotal week for councils sees fresh devolution plans, new service pilots and key legal and political battles, writes LocalGov editor William Eichler.
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