Public Transport

The Government knows how important affordable and reliable public transport services are in keeping communities connected.

We introduced the Bus Services Act 2025 to put power over local bus services back into the hands of local leaders, including in rural areas. In addition, the Government has confirmed over £3 billion from 2026/27 to support local leaders and bus operators to improve bus services over the spending review period. This includes multi-year allocations for local authorities under the Local Authority Bus Grant (LABG) totalling nearly £700 million per year. East Midlands Combined Authority will be allocated £65.5 million under the LABG from 2026/27 to 2028/29, in addition to the £21.7 million they are already receiving this year.

On 1 January 2025, the Government introduced a new £3 cap on single bus fares in England outside London, and in the Spending Review announced that this would be extended until March 2027. The £3 cap replaced the £2 cap, and without action, the cap would have ended and fares would have returned to their previous levels. Local authorities can also use their LABG funding to introduce local fares initiatives to further reduce travel costs

Rail services in East Midlands Combined Authority are supported by requirements on train operators to plan services and design timetables to meet both current and future passenger demand, while also ensuring value for money for the taxpayer. The government commitment to public ownership through Great British Railways will also help to deliver a unified system that focuses on reliable, affordable, high-quality and efficient transport services, whilst also ensuring safety and accessibility. Under public ownership, passenger services can be operated in the interests of passengers, not shareholders.