A £2.3bn investment announced in the recent Spending Review is to be made to improve local transport, including bus lanes and other measures.

In the Spending Review document, it was stated that transport is ‘critical to the delivery of the growth mission’, increasing funding to give people across the country ‘greater access to jobs, education, training and public services’.

This will deliver a fourfold increase in funding in 2029-30 compared to 2024-25.

Some of England’s largest city regions are due to receive a share of £15.6bn in total by the 2031-32. This can be invested in local projects, including zero-emission buses.

Also announced was £2.2bn of funding between 2026-27 and 2029-30 for TfL’s capital renewals programme.

Reactions

MD of trade body RHA, Richard Smith, said: “While significant rail investment has been announced today, there remains a concerning lack of priority given to the much-needed road investment required to unlock growth and alleviate congestion.

“We need to see quicker turnaround, and spades in the ground on more key road projects that cut congestion, speed up journey times, connect communities and help businesses.

“We’re concerned that the  £24b announcement  to cover both the Strategic Road Network and the Local Road Network appears to be a real terms cut compared to the previous period. If so, this would be a missed economic opportunity. 

“The government must recognise that major road investment is critical to keep goods, passengers and communities moving and connected. We stand ready to work collaboratively to drive forward the economy and keep Britain’s supply chain strong.”

Alison Edwards, Director of Policy and External Relations at CPT, said: “Transport is fundamental in kickstarting economic growth. Buses, in particular, enable 11 million people every day to get to work, to access education and to spend money in local high streets.

“Today the Chancellor stated her commitment to improve the journeys people make every day with the promise of a four times’ increase in local transport grants by the end of this Parliament. Buses, which are Britain’s favourite form of public transport, must receive their fair share of this capital funding. They are great value for money; every pound dedicated to buses generates a return to the economy of £4.55.

“While most passengers already pay less than the £3 cap, we recognise that low headline fares are an important part of the mix to enhance buses’ appeal, so the industry will again work closely with government to make the latest extension to the fare cap work.

“But affordability is only one part of the picture.

“Good bus services improve life in communities across the country and are vital for social and economic inclusion. They improve people’s health, combat loneliness and revive footfall in town centres.

“The bus network outside London costs £3.5 billion to run. While bus fares pay for most of this, the social importance of transport is such that councils need to step in and support the cost of certain services.

“Operators will continue to work hard with local authorities to ensure that all funding allocated to buses is used effectively and that bus passengers get a fair deal.”

Ben Plowden, Chief Executive of Campaign for Better Transport, said: “Based on the Chancellor’s initial speech, it looks like good news for transport today, with capital investment for our city regions and the areas outside them, and funding for much needed rail projects across the country. We’re also really pleased that the £3 fare cap for single bus journeys outside of London is being extended, something passengers will also welcome.

“Whilst we acknowledge the funding challenges that government faces, we are concerned about the potential impact of an overall cut in revenue investment for transport and what this will mean in practice.”