Source · Select Committees · Transport Committee
Recommendation 3
3
Deferred
Short-term funding for bus services hinders local authorities' improvement efforts.
Conclusion
The short-term nature of funding for bus services has hampered local authorities’ ability to improve services. Five-year settlements in other transport sectors like rail and the strategic road network have enabled greater certainty and promoted strategic planning. Bus services, the most widely used form of public transport, require a similar commitment. (Conclusion, Paragraph 30)
Government response summary AI-generated
The government stated it is reviewing the Local Authority Bus Grant formula for 2026/27 allocations and will consider the recommendation, but it did not commit to providing five-year funding settlements for bus services to ensure long-term certainty.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Deferred
HM Government · verbatim extract
Deferred
The Government agrees with the Committee in principle on the benefits of multi-year, long-term funding settlements, and recognises that annual funding restricts the ability of LTAs to make long-term funding decisions and drive value for money. It is important to note that the Department for Transport works within the constraints of overall government funding. The Spending Review set departmental budgets for day to day spending up until 2028/29, and 2029/30 on capital, and includes multi-year funding for bus to give greater certainty to local leaders. This demonstrates the Government’s continued commitment to investing in bus, as well as to providing the longer-term funding allocations that LTAs have long asked for by securing funding until the end of this Parliament. The Government is also consolidating the number of different funding streams we pay to LTAs. Responding to local authority feedback, from 2026/27 we intend to simplify various funding streams to help local leaders plan and deliver their local transport priorities. This consolidated funding is an important change that will allow places to meet their local transport needs and deliver on the Government’s missions. In recognition of the benefits of providing further certainty to local authorities and the bus sector over funding arrangements, we commit to exploring the possibility of a five-year funding settlement for bus services with HMT as part of the next Spending Review.
Read the full response on Parliament ↗