Bus Services: Finance
The question
To ask the Secretary of State for Transport, with reference to the press release entitled Government protects thousands of miles of bus services from being scrapped, published on 3 June 2025, whether her Department plans to provide additional funding to local authorities who establish bus companies.
Answered by Simon Lightwood
Repealing the ban on establishing new local authority bus companies (LABCos) will give local leaders the freedom and flexibility to establish a bus company that matches the needs of their passengers, their aims and ambitions for the network, and the available funding.
The government confirmed £955 million for the 2025 to 2026 financial year to support and improve bus services in England outside London. This includes £712 million for local authorities across the country, of which Central Bedfordshire Council was allocated over £3 million. Funding allocated to local authorities to improve services can be used in whichever way they wish to deliver better services for passengers, which could include setting up a LABCo.
The Bus Services (No.2) Bill also removes restrictions on existing LABCos accessing private borrowing, if they are doing so for the purposes of providing local services. This provides a level playing field for existing and new LABCos to access private borrowing if prudent and beneficial to do so.
The Department is providing support to local authorities who will wish to explore this option, and we will work with local leaders to ensure this support reflects their needs and priorities.
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