‘Better buses are finally on the way’ with multi-year funding deal – minister

Long-awaited multi-year funding for bus services in England has been announced by the Department for Transport (DfT).

Councils will have the “freedom to spend their allocations” of the £3 billion investment in “whatever way they see fit”, the DfT said.

This could include lowering fares, introducing new routes and creating safer bus stops, the department said.

Passenger groups claimed the announcement follows “years of cuts and uncertainty” caused by short-term funding agreements.

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.”

Graham Vidler, chief executive of the Confederation of Passenger Transport, which represents operators, 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, chief executive of charity 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.”

Published: 05/12/2025 by Radio NewsHub