Better buses, more services: £157 million boost for millions of passengers in the East Midlands

Millions of passengers in the East Midlands are set to benefit from faster, cheaper and more reliable buses after the Government announces a £157.4 million boost for services and infrastructure.

Multi-year funding will give councils the freedom to spend their allocations in whatever way they see fit, allowing local authorities to run schemes like Leicester’s daily and weekly fare caps.

For years local authorities in the East Midlands have been held back from making long-term investments, but multi-year settlements will finally give the much-needed certainty to develop and drive forward plans which cater to the needs of their communities.

This landmark funding follows the Bus Services Act becoming law in October, which for the first time gave local authorities the power to run local services how they see fit and provides greater protection to socially necessary routes.

Transport Secretary, Heidi Alexander, said: “After years of decline, better buses are finally on the way. Our £3 billion investment will give local authorities the long-term funding they need to deliver lower fares, more frequent services, and the reliable transport that communities depend on.

"We've already extended the £3 bus fare cap to help people with their everyday journeys, and now we're backing this with the funding councils need to transform their local services.

"This is part of our wider plan to make public transport cheaper across the country – we've frozen rail fares for the first time in 30 years and we’re building Great British Railways to deliver better value for passengers.

"Whether it's the bus to work, the train to see family, or getting to a hospital appointment, affordable transport is essential to bearing down on the cost of living and growing our economy."

Minister for Roads and Buses, Simon Lightwood said: “For too long passengers have been let down by unreliable services, sub-standard bus stations and over a decade of routes being cut. This £3 billion boost will change this, providing passengers with lower fares, more frequent and reliable services and safer journeys – helping both ease the cost of living and making it easier for people to get to work, hospital appointments and social plans, boosting the economy.”

The allocations bring together various bus funding streams into one source. Millions in funding will be allocated to local authorities in the East Midlands every single year up to 2028/29 and can be spent however they want.

It means local leaders rather than Whitehall will decide how bus services should be run, continuing the Government’s commitment to ensuring services are run for people, not profit.

Mayor of the East Midlands, Claire Ward, said: “This is a huge boost for everyone who relies on buses across the East Midlands. People can look forward to services that are faster, cheaper, greener, and far more reliable, making it easier to get to work, school, hospital appointments, or simply visit friends and family. 

“For the first time, multi-year funding gives us the certainty to plan for the long term, so local communities will finally see bus services designed around their needs. Whether it’s new routes, modern zero-emission buses, or safer, more accessible stops, this investment will make every day travel simpler, more convenient, and more affordable. 

“Better bus services mean more people can access opportunities, businesses can grow, and communities can thrive. This funding isn’t just about buses, it’s about connecting people, unlocking potential, and giving everyone in the East Midlands the freedom to travel with confidence.” 

The announcement is part of the Government's wider commitment to making public transport cheaper and more reliable, bearing down on the cost of living for working people. 

Freezing rail fares for the first time in 30 years will save commuters on more expensive routes more than £300 per year, meaning they keep more of their hard-earned cash. 

The Government is also reforming the railways through Great British Railways, which will bring fares and ticketing into the 21st century with tap in tap out and digital ticketing, delivering better value for money for passengers.