The Commons Transport Committee has welcomed the news that government funding to local authorities for bus services will take into account how rural an area is for the first time
Although the committee described the news as an “announcement” by the Department for Transport, it was a little bit buried in a larger announcement last week of the consolidation of various existing bus funding streams into capital and revenue Local Authority Bus Grant (LABG) totalling nearly £3bn over four years.
The webpage for LABG revenue allocations: 2026 to 2029 states:
The individual revenue allocations were determined using a revised 2025 to 2026 formula that considered the needs of each local transport authority, taking into account population size, levels of deprivation, bus service provision and rurality.

The committee raised the issue of rural buses in its Buses connecting communities report, published in August.
Chair Ruth Cadbury said:
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