Government Confirms £246m Funding to Improve South West Bus Services

Published On: 5 December 2025Last Updated: 5 December 2025By

Millions of passengers across the South West are being promised faster, cheaper and more reliable buses after the Government confirmed a £245.9 million package to support local services and infrastructure.

The funding runs to 2028/29 and brings several bus support schemes into one allocation. Councils will be able to decide how to use their share, which the Government says gives them the long-term certainty they have been asking for.

What the Funding Means

The announcement follows the Bus Services Act becoming law in October, giving local authorities new powers to run services as they see fit and better protect socially necessary routes.

The Government says the multi-year settlements will allow councils to plan ahead after years of short-term funding. It also referenced existing schemes such as the Kids Go Free offer run by the West of England Combined Authority, which could be continued or expanded by local authorities using their allocations.

Transport Secretary Heidi Alexander said: “After years of decline, better buses are finally on the way. Our £3 billion investment will give local authorities the long-term funding they need to deliver lower fares, more frequent services, and the reliable transport that communities depend on.

“We’ve already extended the £3 bus fare cap to help people with their everyday journeys, and now we’re backing this with the funding councils need to transform their local services.

“This is part of our wider plan to make public transport cheaper across the country – we’ve frozen rail fares for the first time in 30 years and we’re building Great British Railways to deliver better value for passengers.

“Whether it’s the bus to work, the train to see family, or getting to a hospital appointment, affordable transport is essential to bearing down on the cost of living and growing our economy.”

Government Pledges Cheaper and More Reliable Travel

Minister for Roads and Buses Simon Lightwood said: “For too long passengers have been let down by unreliable services, sub-standard bus stations and over a decade of routes being cut.

“This £3 billion boost will change this, providing passengers with lower fares, more frequent and reliable services and safer journeys, helping both ease the cost of living and making it easier for people to get to work, hospital appointments and social plans, boosting the economy.”

By giving local leaders full control over how their funding is spent, the Government says it is shifting decisions away from Whitehall to better reflect the needs of passengers.

Reaction Across the South West

Councillor John Stephens, Plymouth City Council’s Cabinet Member for Strategic Planning and Transport, said he welcomed the long-term commitment.

“Continued investment will help us deliver our vision of a thriving bus network where everyone can be connected to important people and places, by services that are frequent, reliable, fast, affordable, safe and clean, which will also help Plymouth to achieve its net zero goals.

“Previous funding has really helped the Plymouth Enhanced Bus Partnership respond to our passenger’s priorities through investment in new routes, more services, more buses running on Sundays, new and better bus stops and improved passenger information. It is getting easier to catch a bus in Plymouth and this new funding will allow us to go further, as a partnership, to help our passengers get the buses they want when they want.”

Peter Knight, Managing Director at Stagecoach South West, said it was an honour to host Simon Lightwood as the funding announcement was made.

He said the allocations give longer-term certainty to networks not only in Plymouth but across Devon and into Cornwall. He also highlighted work with Local Transport Authorities, including free travel on Service 200 Park and Ride in Plymouth on selected days leading up to Christmas.

“We look forward to seeing how this support will play a vital role in enhancing and maintaining bus services for bus users; connecting them to the people and places they need to get to the most, whilst strengthening sustainable travel choices across the region.”

Part of a Wider Transport Plan

The Government says freezing rail fares for the first time in 30 years will save commuters more than £300 per year on some routes. It also says the creation of Great British Railways will modernise fares through tap in tap out systems and digital ticketing.

The bus funding is intended to run alongside these changes, with the aim of making public transport across the country more affordable and reliable for everyday travel.

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