England to Receive ‘London-Style’ Bus Services with Nearly £1 Billion Funding

The government has announced a commitment of almost £1 billion in funding to implement “London-style” bus services throughout England, as part of a substantial Budget allocation. The Department for Transport (DfT) recently provided additional details on its plans for 2025, following the funding’s initial announcement last month. The DfT pledged to introduce what it terms “London-style” services nationwide, stating that funding distribution would be determined by levels of deprivation and population, moving away from the competitive investment application process used in previous years. The DfT indicated that Leicester, the Isle of Wight, Torbay, Southend, Cambridgeshire, and Peterborough are slated to receive “unprecedented” funding levels. In urban areas, some of the most significant allocations are designated for combined authorities representing South Yorkshire and the Liverpool City Region. In total, £712 million will be directed to local authorities for service improvements, alongside an additional £243 million for bus operators. Approximately 3.4 million people in England regularly use buses, making it the most frequently utilized form of public transport. The DfT stated that local authorities across all English regions will gain the ability to establish new bus routes, increase service frequency, and safeguard essential routes. It added that these funds would enable more urban areas to maintain high service standards, while rural communities and smaller towns would be able to expand their service offerings. Transport Secretary Louise Haigh informed the BBC’s Sunday with Laura Kuenssberg programme that the funding is expected to “vastly improve” the reliability and frequency of services, particularly in rural areas. This announcement precedes the upcoming Buses Bill, which aims to grant local transport authorities across England new powers to manage bus services. Under the proposed framework, local authorities would be authorized to implement a London-style franchising system, allowing them to determine routes, timetables, and fares, with operators bidding to run services for a fixed fee. The government has also committed to lifting the ban on publicly owned bus companies. An additional £151 million will also finance a cap on single bus fares outside London, which increased to £3 last month, until the end of 2025. The Liberal Democrats have urged the government to reverse its decision to raise the cap, with the party asserting it will negatively impact both commuters and local businesses. Liberal Democrat leader Sir Ed Davey stated on Friday: “The fare cap increase is like a bus tax for people across the country, impacting bus users and commuters already struggling to make ends meet. “MPs must be given a say on this bus fare hike on behalf of their constituents.” Conservative shadow transport secretary Gareth Bacon commented: “Labour have chosen to increase bus fares by 50% in a further attack on rural communities, working people and pensioners.” He continued: “They didn’t have the courage to tell people their plans in the election. This is another broken promise that raises costs on working people.” However, the DfT clarified that the fare cap introduced by the previous Conservative government was set to expire at the end of 2024, and some fares would have significantly increased without its intervention. The DfT affirmed: “Fares will only be allowed to increase with inflation in the normal way, and the £3 bus fare cap will lead to savings of up to 80% on some routes, keeping bus tickets affordable across the country.”