Costs rise 4% in bus sector, says CPT Cost Monitor

Principal unit costs across Great Britain’s bus sector rose by 4% in cash terms between February 2024 and February 2025, according to CPT‘s latest Cost Monitor report.

The twice-yearly CPT Cost Monitor survey, now in its sixth edition, collates detailed cost data from 52 operating companies responsible for more than 17,000 peak vehicles and 67% of bus mileage operated in Great Britain.

The 4% overall rise in unit costs was driven most significantly by increases in staff and maintenance-related expenses. Labour costs rose by 6.6%, reflecting higher wage settlements and continued recruitment and retention challenges across the industry. Engineering costs increased by 8.6%, as operators faced rising prices for parts, repairs and servicing.

According to the Monitor, depreciation and leasing costs rose by 5%, suggesting ongoing investment in new and more efficient fleets, particularly electric and low-emission vehicles. Claims and insurance costs showed an overall decline of 3.1%, while overheads fell by 7.1%, pointing to efficiency gains in back-office and administrative functions.

While fuel-driven vehicle running costs fell by 0.4%, these savings were not sufficient to offset wider cost pressures across core operational areas.

Regional variations in cost rises were present:

• Wales recorded the highest overall cost increase at 5.8%, driven by a 159.9% surge in semi-variable costs and a 30.2% rise in overheads, despite large reductions in running and engineering costs.
• English Shire areas and London each recorded a 4.4% increase, with Shire areas seeing particularly sharp rises in labour (+9.3%) and engineering (+16.5%) costs.
• Scotland and English Metropolitan areas recorded more moderate overall cost increases of 3.2% and 2.1%, respectively, although both regions experienced significant jumps in specific categories such as claims & insurance (+25–26%).

“With the fare cap reimbursement allocations and local funding settlements under review, it’s critical that policy decisions reflect the real, rising cost of keeping Britain’s bus networks moving” – CPT Operations Director, Keith McNally

CPT Operations Director, Keith McNally, said: “While a 4% increase may sound modest, it represents a significant ongoing burden on operators who are already running services on tight margins. Labour and engineering costs together represent around 65% of total costs and there were notable increases in these areas.

“With the fare cap reimbursement allocations and local funding settlements under review, it’s critical that policy decisions reflect the real, rising cost of keeping Britain’s bus networks moving. Stability and certainty in funding will be key to protecting routes, supporting jobs, and delivering the green transport future we all want to see.”

The sixth CPT Cost Monitor was conducted between March and May 2025, covering a representative week of operations in February 2025.