Multi-year funding gives local authorities the funds they need to provide passengers with lower fares, more frequent and reliable services and safer journeys
Millions of passengers across the UK are set to benefit from faster, cheaper and more reliable buses after the government announces a £3 billion boost for services and infrastructure.
Multi-year funding will give councils the freedom to spend their allocations in whatever way they see fit, whether it is lowering the prices of fares, introducing new routes and zero emission buses or creating safer bus stops.
See local authority bus grant (LABG) allocations for more information.
For years, local authorities have been held back from making long-term investments, but multi-year settlements will finally give the much-needed certainty to develop and drive forward plans that cater to the needs of their communities.
This landmark funding follows the Bus Services Act becoming law in October 2025, which for the first time gave local authorities the power to run local services how they see fit and provides greater protection to socially necessary routes.
Transport Secretary, Heidi Alexander, said:
Minister for Roads and Buses, Simon Lightwood, said:
The allocations bring together various bus funding streams into one source. Almost £700 million of funding will be allocated to local authorities every single year up to 2028 to 2029 and can be spent however they want.
It means local leaders, rather than Whitehall, will decide how bus services should be run, continuing the government’s commitment to ensuring services are run for people, not profit.
This will be to help mayoral combined authorities with the costs of franchising their bus services, a model which has already seen success in areas like Greater Manchester with its Bee Network.
Graham Vidler, CEO of the Confederation of Passenger Transport, said:
Lydia Horbury, CEO Bus Users UK, said:
Jason Prince, Director of the Urban Transport Group, said:
Alongside this multi-year funding, and following the start of the bus franchising pilots across the UK, the government is also announcing a £3 million Bus Franchising Fund.
Today’s (5 December 2025) announcement is part of the government’s wider commitment to making public transport cheaper and more reliable, bearing down on the cost of living for working people.
Freezing rail fares for the first time in 30 years will save commuters on more expensive routes more than £300 per year, meaning they keep more of their hard-earned cash.
The government is also reforming the railways through Great British Railways, which will bring fares and ticketing into the 21st century with tap-in-tap-out and digital ticketing, delivering better value for money for passengers.