City regions across England are calling for vital funding for the bus to be extended in the forthcoming Budget, to ensure Government can meet its own ambitions on protecting and enhancing bus services.

In a new paper published today, the Urban Transport Group (the UK’s network of transport authorities) is urging Government to extend a number of funding streams for the bus until the beginning of the Spending Review period, in April 2026.

It warns of the risks of failing to do so could lead to a loss of bus services and an increase in bus fares.

Specifically, it is calling for:

• an extension of Bus Service Improvement Plan (BSIP) funding for at least one extra year to April 2026. The continuation of BSIP funding is crucial to safeguard bus networks, and without it, potential reductions in bus service mileage could be in excess of 24% in in some areas.
• an extension of Bus Service Operators Grant Plus (BSOG+) support for at least one year. Without BSOG, it is estimated that commercial bus services could decline by 10% and bus fares could rise by 10%.
• the retention of the national fare cap, which is currently £2, until at least April 2026. Evidence collected from UTG members suggests some ticket prices could increase by up to 40% in the absence of a fare cap.

The paper - The pathway to a brighter transport future: The fiscal imperative – also calls for long term capital and revenue funding for city regions and London (specifically around the confirmation of City Region Sustainable Transport Settlement allocations) and continuing support for devolution and a commitment to explore further local investment levers.

Steve Warrener, Chair of the Urban Transport Group, said:

“We welcome the Government’s commitment to put transport at the heart of its economic growth agenda and the Transport Secretary’s ambition to ‘move fast and fix things’.

“However, there is an imperative for the Chancellor to confirm core transport funding, specifically for the bus. Without it, the opportunity for our city regions to deliver economic growth and support the Government’s wider missions – and particularly its bold ambitions for bus through the Better Buses Bill – could be undermined.

“This first Budget gives the Treasury a chance to demonstrate its commitment to safeguarding vital public transport services, serving as a bridge to the development of a longer-term plan ahead of the Spending Review.”