Question to the Department for Transport:

To ask the Secretary of State for Transport, how much of the funding allocated in the Spending Review 2025 will be spent on (a) public transport and (b) bus services in (i) the North West and (ii) Preston.

The North-West of England will benefit significantly from increased government investment to improve local public transport. Some larger city regions in the North-West will receive long-term funding through the Transport for City Regions (TCR) programme, with a total of over £4 billion allocated for the period 2027/28 to 2031/32. This funding will help local leaders deliver better bus, rail, cycling and walking networks with greater certainty and flexibility. For areas in the North-West not receiving TCR settlements, the Local Transport Grant (LTG) will provide over £413 million from 2026/27 to 2029/30 in simplified, consolidated funding to support improvements in local priorities such as zero-emission buses, public transport upgrades, and safer, more accessible streets. Together, these investments will make everyday journeys quicker, greener, and more reliable across the region.

The Lancashire Combined County Authority is set to receive a £215 million capital allocation through the Local Transport Grant. As a major town within this area, Preston will benefit from the funding through improvements to local transport infrastructure.

At the 2025 Spending Review, the Government also announced a major long-term investment in bus services, committing around £900 million of resource funding each year to maintain and improve services and to extend the £3 fare cap until March 2027. Including capital investment, this represents over £1 billion a year in total support for the bus sector. Individual allocations for the North-West have not yet been confirmed, as the Department for Transport is still carrying out internal business planning. However, this guaranteed funding will support and improve bus services for passengers across the region, helping to grow the economy, boost household incomes and improve access to opportunity.