October 08 2026

  • The UK’s 2,500 coach operators have absorbed a 46% increase in diesel prices since February 
  • Without relief, 41% of Coach UK members will look at cutting back operations at the end of the year 
  • Home-to-school services carrying 600,000 children a day at risk, along with tourist transport, excursions and community activities
  • A 20p rebate for coach operators for a year would cost £52 million – equivalent to less than two days’ Government support to the rail network 

The UK’s coach industry is today calling on the Chief Secretary to the Treasury to deliver an emergency rebate of 20p per litre in the cost of diesel for coach operators. 

Coach UK, which represents the industry, is warning that the country’s 2,500 coach businesses – of which 85% are family owned – are struggling to absorb soaring costs at the pump. 

Without urgent relief, coach operators will be forced to make difficult decisions about the viability of services – including home-to-school transport, school and educational trips, transport for community groups, sports clubs and tourism. 

In a survey of members by Coach UK, operators reported a median increase of 46% in the cost of fuel since hostilities began in Iran in February. Fuel is the second biggest expense in running coaches behind payroll, accounting for nearly a third of overall costs. Prices have typically risen from £1.12 to £1.61 per litre for coaches. 

The rise has put particular pressure on services tendered at a fixed price – such as home-to-school contracts on behalf of local authorities. Coach operators take 600,000 children to school in the UK every day but services are becoming unsustainable as fuel costs rise. 

Coach UK’s survey found that if high prices persist beyond December, 41% will withdraw from home-to-school contracts and 18% will have to consider contemplate closing their businesses altogether. 

  • A targeted rebate scheme could enable coach operators to claw back part of the cost of diesel. It would cost £52.2 million over the course of a year and could be part funded by the increase in VAT revenue received by the Treasury from motorists since diesel has risen in price. 

Graham Vidler, Chief Executive of the Confederation of Passenger Transport said: “Coach operators provide a hidden backbone of transport in the UK. They’re entrepreneurial businesses which are used to navigating bumps in the road. This year’s surge in the price of fuel, though, is posing a threat to the entire industry.  

“In the usual course of events, coach operators get no public subsidy. We are asking, as a last resort, for short-term support from the Government to keep coaches on the road. A 20 pence per litre emergency rebate on fuel duty would be a modest cost to the Treasury and would safeguard vital services.  

“If operators are simply left to sink or swim, they will be forced to cut back. The impact will be felt by parents, sports teams, community groups and by the visitor economy across the country.” 

The coach industry supports 81,000 jobs, generating £6.4 billion of economic value through employment. And coach passengers spend £8.3 billion a year in destinations across the country according to a study by KPMG.  

The industry delivers 450 million journeys a year – equivalent to 40% of all journeys taken by rail. The cost of a 20p per litre diesel rebate for coach operators, at £52 million, would be equivalent to less than two days’ operational subsidy for the rail network – which amounts to £11.9 billion per year or £33 million per day. 

Coach UK is part of the Confederation of Passenger Transport. It speaks on behalf of  operators running more than 10,000 vehicles.