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Bus Policies

Buses are at the heart of the nation’s economic and social life. They carry out over 11 million passengers every day and are vital to local economies, enabling people to earn, learn and spend in local communities. Buses are essential to social inclusion, and are the most effective and fairest way of decreasing carbon emissions and achieving net zero.

 

The Economic Impact of Local Bus Services

Bus services deliver significant benefits for the UK economy and represent excellent value for money in terms of government investment.

CPT-commissioned independent analysis by KPMG reveals:

  • Bus operators directly employ 105,000 people and support the employment of 53,000 people in the sector supply chain – providing an £11bn boost to the British economy.
  • Bus passengers spend £1 in every £10 spent on the High Street, contributing a total of almost £40bn every year to local economies.
  • Bus commuters earn £72bn a year and pay taxes worth £15bn.
  • A package of investments to improve infrastructure for buses and support better services can generate returns worth £4.55 for every £1 invested.
  • Buses provide access to jobs, education and training worth £8.7bn, health benefits worth £2.8bn, support volunteer work valued at over £1bn, and support a reduction in congestion worth £600m per year.

Read the full report here.

 

Our 2025 bus policy priorities

Ensuring sufficient long-term, sustainable investment in buses

The bus sector needs long-term, secure funding which will give both bus operators and local transport authorities (LTAs) the confidence to plan future investments while delivering excellent services for passengers.

  • The government has identified buses as a vital tool of economic growth, and has pledged to reverse the long-term decline in bus usage that predates the COVID-19 pandemic.
  • This can only be achieved by investing in bus services. CPT estimates that with an additional £205m annually, local communities could see buses travelling 36 million miles more each year, and growth of the network by 5%.
  • A bold funding package that goes beyond the status quo can transform the nation’s bus network, deliver immediate, tangible benefits, and support economic growth.
  • The government has committed to fund the £3 bus fare cap until March 2027, and the industry is committed to work closely with the government to make this latest extension work. With most passengers already paying less than the £3 cap, government should recognise that long-term certainty is vital to ensuring a sustainable bus network. Investing in the fare cap is one piece of a broader picture to ensure the future financial viability of bus services.
  • CPT welcomed the £900m per year that has been invested in the 2025 spending review to maintain and improve bus services. As Britain’s favourite form of public transport, buses also must receive their fair share of the £15.3m allocated via the City Regions fund and £2.3bn in the local transport grant, to ensure that bus passengers get a fair deal.

Putting buses first in the transport network

Bus speeds have been declining, as data compiled for CPT’s regular Cost Monitor report demonstrates. As bus speeds decrease, costs increase, and buses become a less attractive option for passengers who prioritise speed and reliability above all other considerations. This has the knock-on effect of encouraging people to use their cars more often, further increasing emissions and exacerbating congestion.

  • Investment of £200m a year in bus priority measures, such as dedicated lanes and traffic signal improvements, would speed up buses, making them cheaper to run and more attractive to passengers. It would also generate £1bn a year in economic benefits, ultimately reducing the need for public funding.
  • Local authorities should commit to increase the speed of bus services, setting achievable targets and backing them up with investment in bus priority measures.
  • Increasing bus speeds by 10% could result in 135 million more miles of service per year. Read our latest Cost Monitor report here.
  • Local authorities must also recognise the impact of badly coordinated street works on bus services – which have contributed to a 13.5% real terms increase in bus operators’ cost per kilometre since 2019. Buses must be given priority passage through work zones, and the government must crack down on non-emergency work carried out under the guise of ‘emergency’ permits.

Driving towards a zero-emission fleet

Buses are a sustainable travel option, with one fully loaded double decker bus capable of removing up to 75 cars off the road. Encouraging more people onto the bus is critical in delivering the country’s net zero ambitions. Moreover, by moving more people out of their cars and onto the bus, we can encourage a virtuous circle which sees the bus become more popular, bus speeds decrease, fare revenue increase, and greater investment in bus services.

Encouraging modal shift that sees everyone swap two car trips a month to the bus would save nearly 15.8 million tonnes of CO2e by 2050, equivalent to the total emissions of the North East in 2019.

This would: 

  • Deliver reductions in air quality pollution valued at £28 million, enough to pay for 800 nurses. 
  • Yield £14.9 billion in health benefits, enough to build 33 new NHS hospitals. 
  • Deliver reductions in congestion valued at £29.4 billion, more than the GDP of the City of Manchester in 2019. 

To read more about the benefits achieved by modal shift, read our report on the Decarbonisation Dividend here.  

The bus industry recognises the importance of driving the zero-emission transition forward, and operators are making significant commitments to decarbonise their fleets.

  • ZEBRA funding has resulted in £2.50 of private sector money for every £1 invested. CPT estimates that continued investment in zero-emission buses of around £200m per year over the next five years could leverage around £2.5bn in private sector finance, ensuring that the transition to zero-emission continues at pace.
  • Operators are investing across the country, not just in vehicles, but also in electric charging depots, many of which will be available to other businesses in the community.
  • As more local authorities take control of fleets and depots through franchising, utilising the expertise and experience of the private sector in the procuring of zero-emission vehicles will be vital to ensuring the transition continues.
  • Buses must also be prioritised within the planning system, with new developments prioritising the provision of bus services and considering how to create bus-centric communities. Read our response to the National Planning Policy Framework here.
  • The Integrated National Transport Strategy (INTS) should set out a hierarchy of transport modes that prioritises walking, cycling and public transport, with this being filtered through to all national, regional and local transport plans. Read our response to the INTS call for ideas here.
  • Local authorities must also ensure that they continue to incentivise operators to invest in new vehicles, regardless of the regulatory model they choose.

Delivering the benefits of the Bus Services (No.2) Act

The Bus Services (No.2) Bill (soon to be Act) sets an ambitious agenda for the bus sector. Operators look forward to working with government to deliver the benefits for passengers that the government intends.

  • Tackling the bus sector’s fundamental challenges: regardless of the regulatory approach an LTA undertakes, bus services across the country face similar challenges including tackling congestion, providing fast, reliable and frequent services, and improving accessibility.
  • Supporting a variety of regulatory models: while franchising may work best in areas with dense populations and where buses can be integrated with other modes, Enhanced Partnerships in places like Norfolk and Portsmouth are delivering considerable growth in passenger numbers. Where franchising is the locally agreed option, franchises must be carefully designed to ensure that SME operators are able to compete.
  • Socially and Economically Necessary Services: CPT supports the ambition of government to protect services that many communities rely on, but government must ensure that sufficient funding is available to keep these services operating when they are not commercially viable.
  • Tackling crime and anti-social behaviour on buses: CPT supports the Act’s proposals to tackle anti-social behaviour, and is proactively developing training material on Violence Against Women and Girls with input from operators, trade unions, subject matter experts and the Department for Transport.

Ensuring a strong future workforce for the sector

There are 87,000 bus drivers in the UK. The availability of drivers is a crucial factor for operators, with the latest CPT research revealing that there is currently a vacancy rate of 3.7%.

  • Analysis from our Cost Monitor report reveals that labour costs account for 57.4% of bus operators’ total operating costs, with wages making up 39.2%.
  • 88% of bus drivers are male, and CPT is part of initiatives across the UK to support bringing more women into the profession.
  • CPT has long called on the government to support an industry-led workforce strategy, which will attract talent into the industry and help keep costs under control.
  • CPT has also called on the government to enable trainee drivers to undertake the off road elements of the vocational licence acquisition while their provisional licence is being processed, as well as permitting 18- and 19-year-olds to drive regular services without any distance restrictions.

To learn more about our policy priorities and to get involved in our policy work contact: 

Alison Edwards, Director of Policy and External Relations

Rebecka Steven, Senior Policy Adviser

Nicholas Jessup, Policy Manager