Haigh reveals where funding will go to boost bus services across country

The Government has revealed where £1 billion in funding will go to deliver London-style buses nationwide as part of a massive Budget boost.

Transport Secretary Louise Haigh on Sunday confirmed £712 million in funding for local authorities to improve services, alongside a further £243 million for bus operators.

Areas receiving an “unprecedented” amount of funding include Peterborough, the Isle of Wright, Torbay, Cambridgeshire, Leicester and Torbay.

Combined authorities representing South Yorkshire and Liverpool City region will receive £17 million and nearly £21 million respectively.

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A reformed allocation model has been based on need – for example an area’s levels of deprivation and population – instead of making areas compete for funding as in previous years.

Ms Haigh said the investment would end “complicated and inconsistent” funding models that have impacted passengers for years.

“Buses are the lifeblood of communities, but the system is broken,” she said.

“Too often, passengers are left waiting hours for buses that don’t turn up – and some have been cut off altogether.

“That’s why we’re reforming funding to deliver better buses across the country and end the postcode lottery of bus services.”

Alongside the big spend, the Government will also set aside £150 million to cap fares at a maximum of £3.

An inflationary limit will also be set to ensure other fares are not automatically increased to £3. The cap will run until the end of 2025.

Single bus fares in England have been capped at £2 outside London, where they are £1.75 per journey, for most routes since January 2023.

Raising the bus fare cap from £2 to £3 has been met with some opposition.

The Welsh Labour conference will continue in Llandudno on Sunday.

Sir Keir Starmer delivered a speech at the conference on Saturday in which he defended the Budget as farmers protested changes to inheritance tax outside the venue.

Alison Edwards, Director of Policy and External Relations at the Confederation of Passenger Transport said: “It is encouraging to see that the funding will be shared across every English region. Bus operators look forward to working with local authorities on plans to speed up services, improve coordination and enhance frequencies.

“Bus passengers deserve a fair funding deal. Every pound of public money invested in buses delivers a return of more than £4 in benefits to the environment, to public health and to communities.”