Bus Services: Finance
The question
To ask the Secretary of State for Transport, with reference to her Department's press release entitled Better buses, more services: £3 billion boost for millions of passengers, published on 5 December 2025, what criteria were used to determine the Local Authority Bus Grant (LABG) allocations published alongside the £3 billion investment.
Answered by Simon Lightwood
On 5 December, the Government confirmed investment of over £3 billion for the rest of the spending review period to support local leaders and bus operators across the country to improve bus services for millions of passengers.
This includes multi-year allocations for local authorities under the Local Authority Bus Grant (LABG) totalling nearly £700 million per year, ending the short-term approach to bus funding and giving councils the certainty they need to plan ahead. Local authorities will have the flexibility to use this funding to meet local needs, whether that be reducing fares, introducing new routes, investing in zero-emission buses or improving bus stops and stations.
LABG allocations have been calculated using a fair and transparent approach that considers population size, levels of deprivation, the extent of existing bus services and rurality. Further details on the funding formula have been published on GOV.UK at: Local Authority Bus Grant allocations - GOV.UK.
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