Bus Services: Rural Areas
The question
To ask the Secretary of State for Transport, what steps she is taking to provide long-term and stable funding for rural bus services.
Answered by Simon Lightwood
The Government knows how important affordable and reliable bus services are in keeping communities connected, including in rural areas. 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 County Authority will be allocated £65.5 million of this funding from 2026/27 to 2028/29, in addition to the £21.7 million they have received in 2025/26. Funding allocated to local authorities to improve services can be used in whichever way they wish, to deliver better services for passengers, including expanding services and improving reliability.
The formula used to calculate LABG allocations for 2026/27 onwards includes consideration of the rurality of local areas for the first time, acknowledging the challenges of running services in rural areas, in addition to population size, levels of deprivation, and the extent of existing bus services.
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