Overview
- Almost £700 million will be allocated to local authorities each year through 2028/29, with multiple bus funding streams combined into one flexible pot.
- The package follows the Bus Services Act passed in October 2025, which gives councils new powers to run services and protect socially necessary routes.
- The government is creating a £3 million Bus Franchising Fund to support areas developing franchised networks, building on pilots such as Greater Manchester’s Bee Network.
- The initiative accompanies an extended £3 bus fare cap and the first rail fare freeze in 30 years as part of efforts to reduce travel costs.
- Passenger groups and industry bodies welcomed the long‑term certainty but urged delivery of reliable, inclusive services and investment in zero‑emission buses.