£1 billion boost to get Britain's bus services moving

Transport Secretary Louise Haigh has said the Government would bring to an end the postcode lottery of unreliable bus services - with funding allocated on need, levels of deprivation and population rather than making local areas waste time and resources on competitive bidding wars.

In a report in the Daily Mirror, the transport secretary is set to reveal who gets what as she vows to deliver London-style services to the whole country. The Department for Transport said the cash would mean fewer cuts to at-risk routes and make more buses run on time.

Ms Haigh told the Mirror it would bring to an end the postcode lottery of unreliable services.

Buses are by far the most popular form of public transport in the UK, with 3.4 billion passenger journeys last year in England. They can be a vital lifeline for the elderly and rural communities, and support tourism, commuters and the night-time economy in big cities, but decades of deregulation have seen thousands of vital routes axed.

The Labour government has said it is empowering local councils to take back control of services and funding will be based on need, levels of deprivation and population instead of making local areas compete with each other for cash. The government has claimed every region in England will benefit from the new round of funding – but particularly historically neglected rural areas and small towns.

Leicester, the Isle of Wight, Torbay, Southend, Cambridgeshire and Peterborough will get record levels of investment. Urban areas will get the funding to maintain and improve services, while rural communities in areas like Essex and Hampshire will be able to offer more services and new routes.

In last month’s Budget, Chancellor Rachel Reeves extended the national cap on fares until December 2025. The cap will rise from £2 to £3 but fares less than £3 will only rise by inflation. The extension will cost £150million and still represents savings of up to 80 percent on some routes.

Buses were privatised in the 1980s under Margaret Thatcher, with local authorities banned from operating their own. There followed decades of decline as bus companies cut unprofitable rural services in favour of urban routes.

The law was changed to allow areas like Manchester to launch their successful Bee Network. But the Buses bill, to be introduced tomorrow, scraps the ban everywhere.

Writing for the Daily Mirror, Louise Haigh, Transport secretary, said: "Buses are the beating heart of our cities, towns, and rural communities. They don’t simply take people from A to B – they’re a gateway to opportunity.

"But for four decades, people have had to endure failed deregulation. Crucial routes have been cut, services are constantly delayed, and sometimes buses don’t even turn up.

"Now, we are finally turning the page – with one billion pounds to support, improve and protect crucial bus services all over the country.

"And we’re reforming the way funding is delivered – meaning money is allocated based on need, population and levels of deprivation – instead of picking winners and losers, and making areas compete for funding, which is a drain on resources and slows down decisions.

"The Conservatives were throwing money at a broken system, giving operators almost everywhere freedom to pick and choose whatever routes they wanted. That’s left entire communities cut off altogether without the services they need to get them to work, friends and family or to the shops.

"This represents record capital investment to the majority of places and a once-in-a-generation reform plan that aims to deliver London-style buses to every corner of the country – including those areas that are usually overlooked.

"So whether you’re in Blackburn or Bournemouth, Blackpool or Buckinghamshire – everyone will be able to finally rely on the high quality bus services they’ve deserved for so long.

"That means earlier and later services to help shift workers, new digital bus timetables and local fares initiatives – and it means councils will be empowered to make the upgrades to local bus services that matter most to local people.

"It’s simple: buses need to turn up, be affordable, and be punctual. Our funding helps them do just that.

"And it’s yet another step towards our bus revolution ahead of our historic Buses Bill, so that local leaders across England can finally take back control of services. Make no mistake - we're extending London-style powers to places across the country.

"With this investment, and these major reforms, we’re delivering the change to give people the transport connections they need and deserve. To access jobs, opportunities, and a better future."