A further £80 million to support buses into 2025 has been pledged by the government.

Today (28 September 2023), Roads Minister Richard Holden confirmed allocations for 64 local authorities across England from the £80 million investment in the Bus Service Improvement Plan+ (BSIP+) for 2024-25.

Local authorities can use the funding to improve local buses in several ways, such as by bringing in new services or routes, extending timetables through new morning or evening buses, or by making tickets cheaper through reduced fares for elderly or young people, depending on what will be most valuable in their local area.

“Buses are the most popular form of public transport, and millions of people across the country from the Tees Valley to Torbay rely on their local service” – Roads Minister, Richard Holden

Roads Minister, Richard Holden, said: “Buses are the most popular form of public transport, and millions of people across the country from the Tees Valley to Torbay rely on their local service to get to work, attend medical appointments and see loved ones.

“We are providing a further £80 million to help local authorities improve and protect essential services, delivering for local communities across the country by enhancing transport connections, supporting passengers and growing the economy.”

The funding follows the first £80 million BSIP+ investment for 2023-24, and the previous £1 billion from the first BSIP funding announced in 2022.

It comes on top of a further £140 million announced in May from the extension of the Bus Service Operators Grant (BSOG), taking the total to continue supporting and protecting bus services across England to £300 million into 2025.

This is in addition to the government’s investment of £200 million to extend the bus fare cap, with single bus tickets capped at £2 outside London until the end of October 2023 and then at £2.50 until 30 November 2024. The measures take total Government support to protect and improve bus services while keeping fares low to £3.5 billion since 2020.

“We welcome the certainty provided by today’s confirmation of the next tranche of local authority funding allocations” – Janette Bell, Managing Director of First Bus

Janette Bell, Managing Director of First Bus, said: “We welcome the certainty provided by today’s confirmation of the next tranche of local authority funding allocations. We look forward to working together with our local authority partners to deliver the best services possible for our customers.

“At First Bus we are driven by a passion to get more people using the bus and we welcome any funding that makes taking the bus an easier travel choice.”

“Operators will continue working with local authorities, to ensure that this funding is targeted at protecting essential bus services…” – Rebecka Steven, CPT’s Senior Policy Adviser

Rebecka Steven, CPT’s Senior Policy Adviser, said: “We welcome the news that the Government has allocated £80m to local authorities through the Bus Service Improvement Plans+.

“Operators will continue working with local authorities, to ensure that this funding is targeted at protecting essential bus services that are vital in keeping passengers connected to work, education, healthcare and leisure opportunities.

£2 fare cap evaluation report

Today also marks the publication of the £2 Bus Fare Cap Second Interim Evaluation report, analysing the initial impact of the cap in January and February 2023, the first two months of the measure.

Almost half of respondents to the report say the fare cap is the main reason they are using the bus more. Over 50 million single bus tickets were sold in England over January and February 2023, two-thirds of which were capped.

“We’re pleased the £2 bus fare cap we campaigned for has been a success, reducing fares and boosting passenger numbers” – Silviya Barrett, from Campaign for Better Transport

Silviya Barrett, from Campaign for Better Transport, said: “We’re pleased the £2 bus fare cap we campaigned for has been a success, reducing fares and boosting passenger numbers.

“The additional funds for local authorities announced today are also welcome and we hope that this is just the start of ongoing investment in bus networks across the country.”

In addition to the £3.5 billion to support buses since 2020, the Government has provided £5.7 billion to 8 mayoral combined authorities in England to support integrated, cross-modal transport networks over the next 5 years through the City Region Sustainable Transport Settlement (CRSTS), including supporting bus infrastructure.

The Department has also recently confirmed £129 million to roll out hundreds more zero emission buses, with the first £25 million prioritised specifically for rural communities. This brings total government investment in new zero-emission buses to almost £500 million.