The UK government has announced a 3 billion GBP funding package to support bus services and infrastructure across England. This funding aims to mark a shift towards longer-term financial planning for local transport authorities.
Announced on 5 December 2025 by the Department for Transport, the multi-year settlement will provide councils with greater certainty after a prolonged period of year-to-year allocations. The funding can be used for a wide range of measures, including fare reductions, new routes, zero-emission vehicles and improvements to stops and interchanges.
The support follows the introduction of the Bus Services Act in October 2025, which granted local authorities stronger powers over how services are organised and enabled greater protection for socially necessary routes.
Under the package, almost 700 million GBP a year will be made available to local authorities up to 2028–29. The funding consolidates several existing bus support streams into a single allocation, giving councils discretion over how best to meet local transport needs.
The programme is intended to allow authorities to plan bus improvements over several years rather than relying on short-term grants. Ministers argue that this approach will help stabilise networks, respond to local priorities and improve access to employment, education and essential services.
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.
A portion of the fund will assist mayoral combined authorities with the cost of developing and implementing franchised bus networks. Franchising gives local leaders direct control over routes, timetables and fares, similar to the model adopted in Greater Manchester through its Bee Network.
Alongside the larger settlement, the government has announced a 3 million GBP Bus Franchising Fund to continue supporting areas in the early stages of moving to franchised operations.
