CPT report puts figures on bus benefits

Independent research on the scale and breadth of economic benefits delivered by local bus services to the British economy highlights how investment in them by government offers excellent value-for-money.

The Economic Impact of Local Bus Services, commissioned by the Confederation of Passenger Transport, shows:

• Bus operators directly employ 105,000 people and support employment of a further 53,000 in the sector’s supply chain – which provides an £11 bn boost to the British economy.
• Bus services deliver far more economic benefits than this, with passengers spending £1 in every £10 spent on the High Street – contributing a total of almost £40bn every year to local economies.
• Bus commuters earn £72bn a year and pay taxes of £15bn.

Alongside health and environmental benefits, a typical package of public investment to improve infrastructure for buses and support better services, can generate returns of £4.55 for every £1 invested.

The research also shows that buses deliver a host of wider benefits for both passengers and  local communities – including access to jobs, education and training worth £8.7bn, health benefits worth £2.8bn, support for volunteer work valued at over £1bn, and a reduction in congestion worth £600m per year.

Launching the results of research in Derby, Graham Vidler, CEO at the Confederation of Passenger Transport, said: “This new research shows the tremendous economic contribution driven by the 100,000 people who work in the bus sector, the 50,000 people working in our supply chain, and the millions of people who use buses every day. It highlights how buses support every aspect of our lives, boosting local economies, connecting communities, improving health, and protecting our environment. It also shows that investing in better bus services is exceptional value-for-money and offers a speedy, flexible way to support green growth across the whole country.”

CPT commissioned this research to provide an up-to-date appraisal of the scale and contribution buses makes economically (and socially) to inform national and regional level for investment in better services and infrastructure.

Speaking about the research, Local Transport Minister, Simon Lightwood MP, said: “We know how important buses are to communities as an affordable, green travel choice which help grow our economy and provide access to jobs too.

“Our Buses Bill will help local councils transform their bus networks to deliver better value for money and more reliable services, for passengers.”

Claire Ward, Mayor of the East Midlands, commented on the study: “The launch of this new report by the Confederation of Passenger Transport is both timely and vital, highlighting the essential role that buses play in driving the economic and social vibrancy of our region. It’s particularly encouraging to see Nottingham recognised for its high level of bus sector employment and the innovative practices of our local operators, like the Skylink service to East Midlands Airport and the excellent work by Trentbarton and NCT. These examples underscore the critical importance of buses in connecting our communities, especially in rural areas where they serve as a lifeline for so many.

“In Derbyshire and Nottinghamshire, the economic impact of our bus services is profound, with £1.8 billion generated in the East Midlands Combined County Authority area alone. This report confirms what we already know: buses are not just a mode of transport but a cornerstone of our local economy. As we look ahead to new opportunities with the Better Buses Bill, it is crucial that we continue to invest in our bus networks, ensuring they remain sustainable, innovative, and responsive to the needs of our communities. By working closely with operators, we can deliver a network that truly benefits everyone in the East Midlands.”

Scott Knowles, Chief Executive, East Midlands Chamber added: “Local bus services are incredibly important to the business community. Employers rely on local bus services as a key option for employees travelling to and from work as well as growing their talent base from further afield, supported by bus routes. Travelling by bus also creates opportunity for a diverse range of employees for whom access to employment would be challenging without easily accessible bus routes.”

Buses are the nation’s most popular form of public transport – facilitating over ten million journeys a day. For every journey made on the national rail network, more than 2.5 journeys are made by bus.

The research quantifies various kinds of economic impact made by buses:

• The bus sector itself, worth more than £11 billion per year to the GB economy, directly employed 105,500 in 2022 – as drivers, mechanics, schedulers, operations managers, customer service teams, and in finance, information technology, human resources, and general management. A further 53,000 people also worked in the sector’s own supply chains – from vehicle manufacturers and fuel suppliers, to running bus stations, stops, and depots as well as vehicle maintenance, parts, real-time information, and ticket technology. All these workers also spend their wages in local economies, which in turn supports additional local employment.
• For many people, buses are the best way to access work, education, healthcare, volunteer, and leisure activities. This research confirms how compared to not travelling at all, or travelling another way, bus services provide lower travel costs and improved connections for passengers worth £8.7 billion per year. Using the bus also generates a wide range of health and well-being improvements that the research suggests have a combined economic impact of £15.6 billion. In particular, the health benefits of bus being a more active travel mode are worth £2.8 billion per year while reduced congestion and modal transfer is valued at £0.6 billion.
• Bus passengers spend £39.1bn billion per year in their local economies. On average, bus passengers – travelling for leisure, shopping or to get to work – spend £32 per return journey in shops, cafes, restaurants, and leisure facilities at their destinations. This spending supports economic activity in local and regional centres across Britain. More than two million commuters rely on buses and provide businesses in local economies with labour. These bus passengers earn approximately £72 billion per year and generate additional tax revenue of over £15 billion per year. Without local bus services, some passengers might find alternative ways to travel but some trips would simply not take place, replaced by online purchases instead or by no spending at all. The research estimates the impact of this could mean High Streets lose £9.2 billion per year.
• The research also confirms the value of public spending to improve bus services: Taking a selection of typical investments including alterations that give buses priority over other traffic on the roads, higher service frequencies, and lower fares, researchers calculate that every £1 of public funding spent on a typical package of measures can generate at least £4.55 in economic benefits, a figure that rises to over £5 for more targeted interventions such as bus priority measures.
• In addition, the research puts a figure of £3.5 billion per year on the economic value of the bus network for people who don’t actually use the bus but want or need the option to be available.

ABOUT THE RESEARCH

CPT commissioned KPMG UK to produce this research between May and August 2024. In addition to an economic analysis built from multiple sources of publicly available data, an engagement phase of research was undertaken with a range of key stakeholders across England, Wales, and Scotland. The resulting analysis covers Great Britain (occasionally UK) as a whole, with nation breakdowns for England, Scotland, and Wales.

Appendix 2 of the report also contains breakdowns for English regions and the Combined Authorities within them. There is no further breakdown for Scotland and Wales beyond nationwide, due to a lack of available data at this level.

Region	Bus industry (wages, taxes, investment in supply chains) economic impact £	Better connections to education, work, healthcare services, leisure, volunteering & wider environmental benefits £	Passengers at their destination (wages, taxes, spending on services and shopping) £
East Region	£935m	£890m	£1.66 bn
Camb & Peterboro’ CA	£35m	£140m	£290m
East Midlands regions	£580m	£795m	£1.51 bn
East Midlands CA	£470m	£400m	£930m
London	£3.14bn	£5.06bn	£18.7 bn
North East Region	£635m	£610m	£1.29bn
North East CA	£455m	£490m	£1.07bn
Tees Valley CA	£180m	£120m	£220m
North West Region	£1.22bn	£1.51bn	£3.01bn
Liverpool City Region	£405m	£370m	£820m
Greater Manchester	£455m	£675m	£1.4bn
South East Region	£1.29bn	£1.74bn	£2.76bn
South West region	£810m	£925m	£1.60bn
West of England	£235m	£210m	£465m
West Midlands Region	£820m	£1.19bn	£2.69bn
West Midlands CA	£655m	£880m	£2.25bn
Yorkshire & The Humber Region	£1.05bn	£1.1bn	£2.2bn
York & North Yorks CA	£80m	£140m	£230m
West Yorkshire	£565m	£510m	£1.1bn
South Yorkshire	£175m	£295m	£615m

Bus operators are also significant regional employers  – London, Birmingham, Manchester, Liverpool. Leeds, Nottingham @ >2k bus sector

A parallel piece of research completed in a similar way and over the same period has evaluated the economic impact of coach services. The results of this research will be published later in the coming weeks, says the CPT.