Community Transport: Rural Areas

(asked on 20th February 2026) - View Source

Question to the Department for Transport:

To ask the Secretary of State for Transport, what support is available for community transport schemes in rural areas.


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

The Government recognises the vital role community transport operators play in connecting people with their communities, enabling access to employment, education and other essential services such as healthcare, including in rural areas.

The Department makes up to £3.8 million available each year through the Bus Service Operators Grant (BSOG) to community transport operators. An uplift of 60% has been added to BSOG claims for community transport operators until 31 March 2026. This means community transport operators will receive £1.60 for every £1 claimed, reflecting the increased costs faced by the sector.

The Government is also providing over £3 billion for bus services from 2026/27 over the remainder of the spending review period. This includes nearly £700 million per year for local authorities through the Local Authority Bus Grant (LABG). The formula used to calculate LABG allocations for 2026/27 onwards includes consideration of the rurality of local areas for the first time, in addition to population size, levels of deprivation, and the extent of existing bus services.

Shropshire Council will be allocated £13.1 million under the LABG from 2026/27 to 2028/29, in addition to the £4.5 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. This could include supporting some community transport services.

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