Bus Services: Grants

(asked on 28th January 2026) - View Source

Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment she has made of the potential merits of establishing a Neighbourhood Transport Grant to provide ringfenced, long-term funding for community transport organisations, allocated through strategic or local transport authorities, to support the reopening of bus routes.


Answered by
Simon Lightwood Portrait
Simon Lightwood
Parliamentary Under-Secretary (Department for Transport)
This question was answered on 2nd February 2026

The Department has made no assessment of establishing such a grant. However, the Government is investing in bus services long-term and has confirmed over £3 billion from 2026/27 to support local leaders and bus operators to improve bus services for millions of passengers over the remainder of 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, ending the short-term approach to bus funding and giving councils the certainty they need to plan ahead to improve services for local communities.

Hampshire County Council will be allocated £45 million under the LABG from 2026/27 to 2028/29, in addition to the £14.1 million they are already receiving this year. 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 or investing in community transport schemes.

Furthermore, community transport operators are eligible to claim the Bus Service Operators Grant (BSOG), the Department makes available up to £3.8 million each year through the BSOG to community transport operators. The BSOG is a grant paid to operators of eligible commercial bus services and community transport organisations to help them recover some of their operating costs.

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