LABG revenue allocations: 2026 to 2029
Updated 22 July 2026
Applies to England
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Funding allocation summary
The 2025 Spending Review confirmed more than £1 billion per year in funding for buses in England outside of London. This includes multi-year allocations for local authorities under the Local Authority Bus Grant (LABG) ending the short-term approach to bus funding and giving councils the certainty they need to plan ahead:
- £481 million of revenue funding per year allocated to local transport authorities via the LABG up to 2028 to 2029
- around £200 million of capital funding per year allocated to local transport authorities via the LABG up to 2029 to 2030
- more than £240 million of revenue funding per year to bus operators
- over £150 million of revenue funding per year to maintain the £3 bus fare cap until March 2027
Local transport authorities will have the flexibility to use LABG funding to meet local needs, whether by reducing fares, introducing new routes, investing in zero-emission buses or improving bus stops and stations.
The LABG revenue funding is additional to, and is not a substitute for, the authorities’ existing baseline bus budget funded by locally-raised revenues or public transport funding allocations from other government departments.
As a condition of receiving LABG funding, local authorities will be asked to use a proportion of their allocation to participate in Transport Focus’ ‘your bus journey’ annual survey. This will enable the survey to be expanded, helping provide passengers with a consistent view of their local bus services.
Funding formula
The Local Authority Bus Grant combines the previously separate allocations of funding for Bus Service Improvement Plans and Local Authority Bus Grant (LABSOG).
Outside London, LA BSOG will no longer exist as a separate grant from 2026 to 2027 and all bus funding will be paid to local transport authorities.
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.
A cap of 25% on gains and a collar of 5% on losses was applied to limit sharp allocation changes and maintain service levels.
LABG revenue allocations
| Local transport authority | Original 2026 to 2027 allocation | 2026 to 2027 one-off in year uplift | Revised 2026 to 2027 allocation | 2027 to 2028 allocation | 2028 to 2029 allocation | Total (2026 to 2027, 2027 to 2028, 2028 to 2029)[footnote 1] |
| Bedford Borough Council | £1,344,513 | £110,568 | £1,455,081 | £1,344,513 | £1,344,513 | £4,144,107 |
|---|---|---|---|---|---|---|
| Bournemouth, Christchurch and Poole Council | £2,621,127 | £164,195 | £2,785,322 | £2,621,127 | £2,621,127 | £8,027,576 |
| Bracknell Forest Council | £616,812 | £38,734 | £655,546 | £616,812 | £616,812 | £1,889,170 |
| Brighton and Hove City Council[footnote 2] | £5,751,718 | £137,624 | £5,889,342 | £5,751,718 | £5,751,718 | £17,392,778 |
| Buckinghamshire County Council | £3,182,422 | £214,748 | £3,397,170 | £3,182,422 | £3,182,422 | £9,762,014 |
| Cambridgeshire and Peterborough Combined Authority | £4,988,020 | £495,323 | £5,483,343 | £4,988,020 | £4,988,020 | £15,459,383 |
| Central Bedfordshire Council | £2,050,349 | £127,287 | £2,177,636 | £2,050,349 | £2,050,349 | £6,278,334 |
| Cheshire East Council[footnote 2] | £3,155,737 | £190,240 | £3,345,977 | £3,155,737 | £3,155,737 | £9,657,451 |
| Cheshire West and Chester Council[footnote 2] | £3,305,318 | £221,103 | £3,526,421 | £3,305,318 | £3,305,318 | £10,137,057 |
| Cornwall Council | £6,782,197 | £435,015 | £7,217,212 | £6,782,197 | £6,782,197 | £20,781,606 |
| Cumberland Council[footnote 2] | £2,494,246 | £190,075 | £2,684,321 | £2,494,246 | £2,494,246 | £7,672,813 |
| Devon and Torbay Combined County Authority | £8,566,578 | £618,227 | £9,184,805 | £8,566,578 | £8,566,578 | £26,317,961 |
| Dorset Council | £2,261,496 | £181,625 | £2,443,121 | £2,261,496 | £2,261,496 | £6,966,113 |
| East Midlands Combined Authority | £21,848,207 | £1,414,048 | £23,262,255 | £21,848,207 | £21,848,207 | £66,958,669 |
| East Sussex County Council[footnote 2] | £5,520,530 | £332,763 | £5,853,293 | £5,520,530 | £5,520,530 | £16,894,353 |
| Essex County Council | £10,778,248 | £783,324 | £11,561,572 | £10,778,248 | £10,778,248 | £33,118,068 |
| Gloucestershire County Council | £4,820,164 | £328,608 | £5,148,772 | £4,820,164 | £4,820,164 | £14,789,100 |
| Greater Lincolnshire Combined Authority | £11,214,192 | £738,660 | £11,952,852 | £11,214,192 | £11,214,192 | £34,381,236 |
| Greater Manchester Combined Authority[footnote 3] | £44,494,180 | £2,366,877 | £46,861,057 | £44,494,180 | £44,494,180 | £135,849,417 |
| Hampshire County Council | £8,270,766 | £558,395 | £8,829,161 | £8,270,766 | £8,270,766 | £25,370,693 |
| Herefordshire Council | £2,041,620 | £122,144 | £2,163,764 | £2,041,620 | £2,041,620 | £6,247,004 |
| Hertfordshire County Council | £6,529,729 | £443,623 | £6,973,352 | £6,529,729 | £6,529,729 | £20,032,810 |
| Hull and East Yorkshire Combined Authority | £6,723,943 | £436,610 | £7,160,553 | £6,723,943 | £6,723,943 | £20,608,439 |
| Isle of Wight Council | £647,629 | £84,755 | £732,384 | £647,629 | £647,629 | £2,027,642 |
| Kent County Council | £14,163,699 | £903,416 | £15,067,115 | £14,163,699 | £14,163,699 | £43,394,513 |
| Lancashire Combined Authority | £18,568,105 | £1,160,107 | £19,728,212 | £18,568,105 | £18,568,105 | £56,864,422 |
| Leicester City Council | £5,359,025 | £365,750 | £5,724,775 | £5,359,025 | £5,359,025 | £16,442,825 |
| Leicestershire County Council | £4,757,939 | £304,292 | £5,062,231 | £4,757,939 | £4,757,939 | £14,578,109 |
| Liverpool City Region Combined Authority | £21,417,059 | £1,291,567 | £22,708,626 | £21,417,059 | £21,417,059 | £65,542,744 |
| Luton Borough Council | £3,515,115 | £170,211 | £3,685,326 | £3,515,115 | £3,515,115 | £10,715,556 |
| Medway Council | £1,768,354 | £162,966 | £1,931,320 | £1,768,354 | £1,768,354 | £5,468,028 |
| Milton Keynes Council | £1,919,024 | £124,741 | £2,043,765 | £1,919,024 | £1,919,024 | £5,881,813 |
| Norfolk County Council | £8,869,506 | £563,468 | £9,432,974 | £8,869,506 | £8,869,506 | £27,171,986 |
| North East Combined Authority | £24,909,759 | £1,622,649 | £26,532,408 | £24,909,759 | £24,909,759 | £76,351,926 |
| North Northamptonshire Council | £2,747,301 | £182,439 | £2,929,740 | £2,747,301 | £2,747,301 | £8,424,342 |
| North Somerset Council | £3,031,533 | £97,401 | £3,128,934 | £3,031,533 | £3,031,533 | £9,192,000 |
| Oxfordshire County Council | £5,132,289 | £352,510 | £5,484,799 | £5,132,289 | £5,132,289 | £15,749,377 |
| Plymouth City Council | £1,749,380 | £162,149 | £1,911,529 | £1,749,380 | £1,749,380 | £5,410,289 |
| Portsmouth City Council | £2,445,332 | £119,150 | £2,564,482 | £2,445,332 | £2,445,332 | £7,455,146 |
| Reading Borough Council | £1,074,048 | £74,870 | £1,148,918 | £1,074,048 | £1,074,048 | £3,297,014 |
| Rutland County Council | £471,597 | £22,797 | £494,394 | £471,597 | £471,597 | £1,437,588 |
| Shropshire Council | £2,919,650 | £174,133 | £3,093,783 | £2,919,650 | £2,919,650 | £8,933,083 |
| Slough Borough Council | £773,047 | £61,913 | £834,960 | £773,047 | £773,047 | £2,381,054 |
| Somerset County Council | £4,382,962 | £340,312 | £4,723,274 | £4,382,962 | £4,382,962 | £13,489,198 |
| South Yorkshire Mayoral Combined Authority | £17,466,247 | £1,136,112 | £18,602,359 | £17,466,247 | £17,466,247 | £53,534,853 |
| Southampton City Council | £1,405,413 | £137,102 | £1,542,515 | £1,405,413 | £1,405,413 | £4,353,341 |
| Southend-on-Sea Borough Council | £973,657 | £103,740 | £1,077,397 | £973,657 | £973,657 | £3,024,711 |
| Staffordshire County Council | £6,380,166 | £420,956 | £6,801,122 | £6,380,166 | £6,380,166 | £19,561,454 |
| Stoke-on-Trent City Council | £5,726,270 | £245,559 | £5,971,829 | £5,726,270 | £5,726,270 | £17,424,369 |
| Suffolk County Council | £4,431,264 | £412,830 | £4,844,094 | £4,431,264 | £4,431,264 | £13,706,622 |
| Surrey County Council | £6,766,884 | £437,622 | £7,204,506 | £6,766,884 | £6,766,884 | £20,738,274 |
| Swindon Borough Council | £1,073,865 | £110,173 | £1,184,038 | £1,073,865 | £1,073,865 | £3,331,768 |
| Tees Valley Combined Authority | £8,662,728 | £569,523 | £9,232,251 | £8,662,728 | £8,662,728 | £26,557,707 |
| Telford and Wrekin Council | £1,682,665 | £109,310 | £1,791,975 | £1,682,665 | £1,682,665 | £5,157,305 |
| Thurrock Council | £943,331 | £87,153 | £1,030,484 | £943,331 | £943,331 | £2,917,146 |
| Warrington Borough Council[footnote 2] | £1,985,053 | £122,047 | £2,107,100 | £1,985,053 | £1,985,053 | £6,077,206 |
| Warwickshire County Council | £4,989,848 | £321,570 | £5,311,418 | £4,989,848 | £4,989,848 | £15,291,114 |
| West Berkshire Council | £1,100,509 | £66,347 | £1,166,856 | £1,100,509 | £1,100,509 | £3,367,874 |
| West Midlands Combined Authority[footnote 4] | £39,790,426 | £2,597,890 | £42,388,316 | £39,790,426 | £39,790,426 | £121,969,168 |
| West Northamptonshire Council | £3,277,286 | £207,751 | £3,485,037 | £3,277,286 | £3,277,286 | £10,039,609 |
| West of England Combined Authority | £14,120,616 | £477,642 | £14,598,258 | £14,120,616 | £14,120,616 | £42,839,490 |
| West Sussex County Council[footnote 2] | £5,293,396 | £349,632 | £5,643,028 | £5,293,396 | £5,293,396 | £16,229,820 |
| West Yorkshire Combined Authority | £34,599,109 | £1,851,904 | £36,451,013 | £34,599,109 | £34,599,109 | £105,649,231 |
| Westmorland and Furness Council[footnote 2] | £1,787,805 | £116,320 | £1,904,125 | £1,787,805 | £1,787,805 | £5,479,735 |
| Wiltshire Council | £4,210,040 | £274,777 | £4,484,817 | £4,210,040 | £4,210,040 | £12,904,897 |
| Royal Borough of Windsor and Maidenhead | £779,104 | £51,036 | £830,140 | £779,104 | £779,104 | £2,388,348 |
| Wokingham Borough Council | £912,219 | £59,760 | £971,979 | £912,219 | £912,219 | £2,796,417 |
| Worcestershire County Council | £5,163,976 | £316,381 | £5,480,357 | £5,163,976 | £5,163,976 | £15,808,309 |
| York and North Yorkshire Combined Authority | £7,330,329 | £425,451 | £7,755,780 | £7,330,329 | £7,330,329 | £22,416,438 |
| Totals | £480,836,671 | £30,000,000 | £510,836,671 | £480,836,671 | £480,836,671 | £1,472,510,013 |
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Including capacity and capability funding and the former LA BSOG for lower-tier local authorities and public transport executives. ↩
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LABG paid to the relevant combined authority. ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8
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Published allocations for 2025 to 2026 included funding amounts for Greater Manchester CA’s devolved commercial BSOG and BSOG+. This funding will continue but as part of the total integrated settlement, rather than as LABG, so it is not included in quanta here. ↩
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Published allocations for 2025 to 2026 included funding amounts for West Midlands CA’s devolved BSOG+. This funding will continue, but has already been confirmed as part of the total integrated settlement, so it is not included in quanta here. ↩