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UK Confirms £3 Billion Multi-Year Funding to Improve Bus Services

Local authorities receive long-term, flexible budgets to reshape networks using newly granted powers.

Overview

  • Nearly £700 million will be allocated to councils each year through 2028/29, with discretion to cut fares, add routes, upgrade safety and back zero-emission buses.
  • The package consolidates existing bus funding streams into a single multi-year settlement and creates a £3 million Bus Franchising Fund to support franchising pilots.
  • The announcement follows the Bus Services Act passed in October 2025, which expanded local powers and strengthened protection for socially necessary routes.
  • Regional allocations include £264.1 million for the West Midlands, with local leaders deciding how best to deploy the funds.
  • Passenger groups and industry bodies welcomed the certainty but urged rapid delivery that prioritises reliability, inclusivity and tangible service improvements.