Key announcement
£37.8 million for 319 new zero-emission buses
- On 8 April 2025 the Department for Transport (DfT) announced an investment of £37.8 million to deliver 319 new zero-emission buses across England by spring 2027. (gov.uk)
- The funding is allocated to 12 local authorities, following bids to expand their zero-emission bus fleets. (dft-newsroom.prgloo.com)
- The investment is to be matched or topped up by at least £3 of private investment for every £1 of government funding. (dft-newsroom.prgloo.com)
- Some of the specific allocations noted:
Other related boost announcements
- On 22 March 2024 the DfT announced £143 million in funding to roll out 955 new zero-emission buses across 25 councils in England, focused especially on rural areas. (gov.uk)
- On 2 March 2023 the DfT announced £25.3 million to fund 117 British-made zero-emission buses in Yorkshire, Norfolk, Portsmouth and Hampshire. (gov.uk)
- On 17 September 2024 the DfT and the Office for Zero Emission Vehicles announced £88 million of joint funding for 46 innovation projects including zero-emission buses and vans. (gov.uk)
- On 13 March 2025 a “UK bus manufacturing expert panel” was launched to support British manufacturing of buses and zero-emission transition. (gov.uk)
What the funding aims to achieve
- Decarbonise bus fleets: switching older diesel buses for zero-emission electric (or possibly hydrogen) buses, helping the UK meet its net-zero/public-transport decarbonisation goals. (gov.uk)
- Improve passenger experience: fewer emissions means cleaner air; newer buses often mean quieter rides, smoother journeys, more comfortable vehicles. (gov.uk)
- Support domestic manufacturing and jobs: many of the buses funded are UK-built, supporting domestic bus manufacturing industry and jobs. (gov.uk)
- Boost regional economies / “levelling up”: by investing in bus fleets across England (including less-urban/rural areas), the government is using transport investment as part of wider regional development. (gov.uk)
- Encourage private sector investment: the “match or more” private investment requirement is meant to leverage government funding to create larger projects. (dft-newsroom.prgloo.com)
Why this matters
- Buses are a major mode of public transport outside rail/metro systems: improving their quality and sustainability has wide-ranging benefits for accessibility, congestion, air quality, climate change and social mobility.
- A large share of bus emissions historically come from older diesel fleets; replacing them with zero-emission vehicles helps reduce local air pollution (nitrogen oxides, particulates) and greenhouse gases. (gov.uk)
- The move signals that the UK intends to be a leader in zero-emission bus deployment — one of the earlier adopters in Europe of large scale electric/hydrogen bus fleets. (gov.uk)
- It also has manufacturing chain implications: bus building in the UK is supported and the demand for charging/refuelling infrastructure also rises (depots, grid upgrades).
- For passengers, newer vehicles can mean better reliability and comfort, which can help revive bus usage (which has been under pressure).
Key numbers & timeline
- £37.8 m for 319 zero-emission buses by Spring 2027 (April 2025 announcement). (gov.uk)
- £143 m for 955 zero-emission buses (March 2024 announcement). (gov.uk)
- Over 2,900 new bus/coach registrations in Q2 2025 (UK) — new fleet growth continues. (SMMT)
- Innovation funding: £88 m announced September 2024 for EV bus/van tech. (gov.uk)
Considerations / Challenges
- Infrastructure readiness: Deploying zero-emission buses requires charging (for electric) or fuel supply (for hydrogen) infrastructure at depots and on routes — these cost money, take time, and require grid upgrades.
- Operational costs & lifecycle: While zero-emission better for environment, maintenance, lifecycle, reliability, battery replacement etc matter.
- Service levels & usage: Even with new vehicles, bus ridership in some places has been weak; newer buses alone don’t guarantee higher usage. For example, a recent report found bus services outside London still declining. (theguardian.com)
- Rural vs urban challenge: Some rural contexts have smaller passenger numbers and longer routes; making zero-emission cost‐effective can be harder.
- Manufacturing/ supply chain risks: Ensuring UK manufacturing capacity, supply of batteries, components, and skilled labour is critical.
- Roll-out speed: Delivering hundreds of new buses by 2027 means procurement, depot upgrades and operator readiness must keep pace.
What this means for different stakeholders
- Local authorities / transport bodies: Able to bid for funding to upgrade fleets, make case for route improvements, join with operators to plan depot infrastructure.
- Bus operators: Opportunity to refresh fleets, reduce fuel/maintenance cost, enhance brand/service, but must manage change (staff training, new tech). For example, First Bus has placed large orders for more than 800 zero-emission vehicles. (greenfleet.net)
- Manufacturers: UK bus manufacturers (e.g., Wrightbus) stand to gain from large orders for zero-emission buses and associated supply chain growth. (gov.uk)
- Passengers / communities: Better, cleaner transport; potentially fewer missed/old-vehicles; but success depends on service levels, frequency, coverage, cost.
- Environmental/ climate objectives: Supports UK’s net-zero ambitions and local clean air objectives; replacing older diesel buses reduces emissions and pollution.
- Here are case studies and commentary on the boost to Britain’s bus fleets via the shift to zero-emission buses and what this means in practice.
Case Studies
1. First Bus – EV fleet investment
- First Bus announced an £89 million investment in 178 zero-emission buses and infrastructure across four regions, alongside local authority partners, after securing funding under the ZEBRA 2 scheme. (First Bus UK News)
- This involved depot upgrades (power infrastructure, charging readiness) in locations such as Taunton, Basildon, Bristol’s Hengrove etc. (First Bus UK News)
- In a previous round, First Bus and partners won funding for 125 EV buses across York, West Yorkshire, Norfolk and Portsmouth. (First Bus)
Key take-aways: shows how operators partner with local authorities, combine government funding + their own investment, and tackle infrastructure as well as vehicles.
2. Zenobē – zero-emission bus roll-out model
- Zenobē (battery/charging/infrastructure specialist) supports bus operators with an end-to-end solution: vehicle financing, depot charging, battery storage. (NatWest)
- Their model highlights that simply buying new buses isn’t sufficient — the infrastructure, battery storage, depot upgrades are essential.
Key take-aways: the ecosystem around zero-emission buses (vehicles + infrastructure + financing) matters.
3. Government funding rounds – local authority allocations
- In April 2025, the UK government announced £37.8 million to deliver 319 new zero-emission buses across England by Spring 2027, across 12 local authorities. (gov.uk)
- Example allocations: Nottinghamshire County Council ~£2.6 m for 42 buses; Hull City Council ~£3.9 m for 42 buses; West of England Combined Authority nearly £20 m for ~160 buses. (gov.uk)
- Earlier, in March 2024, £143 million funding was announced for 955 zero-emission buses across 25 councils, prioritising rural areas. (gov.uk)
Key take-aways: Demonstrates scale of public investment, geographic spread (urban + rural), and the push for local authorities to bid for such funding.
Comments & Insights
What stakeholders are saying
- The Local Transport Minister noted that the funding will make bus travel “cleaner, greener and more comfortable” and create jobs in engineering/construction. (gov.uk)
- First Bus’ managing director commented on alignment with national net-zero ambitions and the need to work closely with central and local government. (First Bus)
- Zenobē’s case suggests that one barrier is not only vehicles, but charging/battery infrastructure and long-term financing model. (NatWest)
What this means in practice: strengths & challenges
Strengths:
- Cleaner air & lower emissions: By replacing diesel buses with zero-emission ones, local air quality can improve, and carbon emissions fall. For instance, earlier government briefings estimated thousands of tonnes CO₂ saved. (gov.uk)
- Improved passenger experience: Newer buses tend to be quieter, smoother, potentially more reliable — which can help boost ridership.
- Industrial/economic benefit: UK manufacturing + supply chain benefit (bus producers, battery/charging infrastructure) plus jobs. (gov.uk)
- Geographical equity: With rural areas specifically targeted in funding rounds, more remote communities can get better buses. (gov.uk)
Challenges:
- Infrastructure readiness: EV buses demand depot upgrades, charging points, grid connections. If infrastructure lags, vehicle rollout slows. (as seen in First Bus’ model)
- Cost and total investment: Zero-emission buses cost more than diesel equivalents; full lifecycle costs and value-for-money must be managed.
- Adoption & utilisation: Having new vehicles is one thing; ensuring routes, frequency and service quality match expectations is another. If bus services are poor, it may not boost usage.
- Manufacturing/supply risks: While manufacturing in the UK is part of the strategy, there are concerns about imported components, competition, and whether domestic industry benefits fully. (House of Commons Library)
- Rural operational characteristics: In rural areas, longer routes and lower passenger numbers can make zero-emission bus economics more challenging (charging intervals, range resilience).
What to Watch / Next Steps
- Deployment metrics: How many of the funded buses are actually on the road by 2027? Are the timelines met?
- Impact on ridership and service quality: Do communities with new zero-emission buses see higher patronage, better satisfaction?
- Cost-effectiveness: How do operational costs compare over time (maintenance, energy, infrastructure amortisation) to older diesel buses?
- Scale-up and supply chain health: Are UK bus manufacturers thriving because of this push? Are supply chain bottlenecks showing up (batteries, raw materials, components)?
- Integration with broader strategy: How does bus electrification integrate with broader transport decarbonisation (rail, active travel, integration with ticketing etc.)?
- Equity of rollout: Are less-well-served (rural/disadvantaged) areas catching up, or is rollout concentrated in urban/more affluent zones?