11

Fragmented short-term bus grant schemes hinder effective investment by operators and authorities.

Recommendation
Over the period 2019–20 to 2024–25, the Department provided £5.9 billion of funding to the bus sector via 13 different grant schemes. Most of these were short term, which hindered effective investment in the sector by bus operators and local transport authorities.21 We asked the Department why it had administered bus grants in such a fragmented manner. The Department acknowledged the issue, explaining that part of the complexity was due to emergency COVID funding and cost-of-living schemes and told us it has already taken some steps to simplify bus funding, for example by combining two grants to local transport authorities.22 The Department also told us that it intends to set out longer-term funding settlements for each local transport authority later this year.23
Government Response

A response document is linked to this report, dated 19 January 2026. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.9 yr
Report published 29 Oct 2025