Shropshire Star

Shropshire set to receive more than £26 million to improve local bus services

Shropshire is set to receive more than £26 million in funding over the next five years to enhance local bus services.

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The Government has announced its local authority bus grant (LABG) allocations, aimed at providing passengers with lower fares, more frequent and reliable services, and safer journeys.

Shropshire Council will receive £8,758,950 in LABG revenue funding up to 2029, alongside £5,871,053 in capital funding up to 2030. Telford & Wrekin Council will receive £5,047,995 in revenue funding and £6,784,510 in capital funding.

Revenue funding is intended to cover day-to-day operational expenses and running costs, while capital funding can be used for long-term investments in infrastructure or major improvements.

The Government has pledged £481 million in annual revenue funding to local transport authorities through the LABG up to 2028/29.

Authorities will have flexibility in using the funding to meet local priorities, such as reducing fares, introducing new routes, investing in zero-emission buses, or improving bus stops and stations.

The LABG revenue funding is additional to - and not a substitute for - the authorities' existing baseline bus budgets, which are funded by locally raised revenues or other public transport funding allocations.

Shropshire Council will receive £2,919,650 revenue funding in each financial year, totalling £8.75m. Meanwhile, Telford & Wrekin Council will receive £1,682,665 in funding each financial year, totalling £5m.

Furthermore, Shropshire Council will receive £1.42 million in capital funding for 2026 to 2027, £1.45m for 2027 to 2028, £1.48m for 2028 to 2029 and £1.51m for 2029 to 2030.

Telford & Wrekin Council has been allocated £1.65m in capital funding for 2026 to 2027, £1.68m for 2027 to 2028, £1.71 for 2028 to 2029 and £1.75 for 2029 to 2030.

Telford MP Shaun Davies has welcomed the funding allocations, saying it will provide significant benefits for residents across the region. 

He said: "I’m really pleased to see more than £5 million coming to Telford for our bus services. Reliable and affordable buses are vital for people across our town and this money is a positive step forward. It can help lower fares, improve routes and make bus travel safer and greener.

"This Government is giving communities the power and the funding they need to take back control of their buses. Telford & Wrekin Council already runs a number of successful council-led bus services, which many residents depend on. These council-operated routes have reconnected areas that private companies previously stopped serving and have provided passengers with more stable, community-focused services.

"I’ve always said that bringing more of our bus network under local control would be better for everyone. It means routes, timetables and standards can be shaped around what local people actually need and not what makes the most money.

"But too many parts of Telford are still not getting the service they deserve. That came through clearly in the bus survey I ran recently where residents told me loud and clear that things need to improve."

Mr Davies added that a young resident from Madeley told him that getting around Telford can be a "real challenge" with there not being enough buses and routes. 

The LABG brings together what were previously two separate funding streams: the Bus Service Improvement Plans and Local Authority Bus Grant (LABSOG).

From 2026 to 2027, LABSOG will be absorbed into a single funding pot for areas outside London, with all bus-related support distributed directly to local transport authorities.

The Government said revenue allocations were calculated using an updated formula for 2025 to 2026, which assesses the specific needs of each authority by factoring in population, levels of deprivation, the extent of local bus services, and how rural the area is.