2025 has been one of the most transformative years for the UK bus industry in decades. Major legislation, ambitious local reforms and rapid technological shifts have reshaped the landscape — 2025 has been one of the most transformative years for the UK bus industry in decades. Major legislation, ambitious local reforms and rapid technological shifts have reshaped the landscape — and 2026 is set to push the sector even further.
A new era: the Bus Services Act comes into force
The Bus Services Act 2025, effective from 27 October, marked a significant development in bus policy in England. It handed far greater power to local authorities, allowing them to set routes, fares and service standards — and once again run their own bus companies. The Act brings tougher requirements on data transparency, modernises service registration, and introduces new safety and accessibility measures, including mandatory staff training. Crucially, it also accelerates decarbonisation by preventing new non–zero-emission buses from being registered after 2030.
Franchising moving from ambition into delivery
Franchising is rapidly shifting from aspiration to delivery across the UK. With the new Bus Services Act in force, more local authorities are moving to take control of routes, fares and standards. West Yorkshire’s Weaver Network is emerging as a notable example with contracts due to be awarded in 2026 and phased launches from 2027. This momentum is spreading: Cambridgeshire & Peterborough and South Yorkshire both announced plans for franchising in early 2025 – signalling a wave of local authorities ready to take control of bus networks.
The Strathclyde Partnership for Transport (SPT) approved proposals in September 2025 to develop a franchising model for the West of Scotland, marking one of the most significant moves in Scottish bus reform for decades.
The direction is clear — passengers can expect more consistent services, simpler fares and, in some cases, the return of publicly owned bus operations.
Zero-emission buses scale up fast
The transition to clean fleets accelerated sharply in 2025. SMMT (Society of Motor Manufacturers & Traders) figures show 616 zero-emission buses registered in Q2, up 45% year on year. Manufacturers are expanding to meet demand — most notably Wrightbus, which plans to produce up to 1,000 zero-emission buses. Operators are also expanding electric fleets, with major groups and independents investing—most notably First Bus opening its first fully electric depot at Weston-super-Mare. The scale of industry–government collaboration suggests even faster growth ahead in 2026.
£3 fare cap extended to support affordability and ridership
In June, to ease cost-of-living pressures and encourage bus use, the Government extended the £3 single fare cap to March 2027. The cap, raised from £2 in late 2024, applies across most services in England outside London. It remains one of the most significant nationwide interventions in bus affordability in recent years.
Infrastructure and smart payments move up the agenda
Infrastructure investment became central to growing bus patronage this year. In Scotland, the government has injected £20 million into bus priority measures — from traffic priority technology to expanded bus lanes.
Meanwhile, Greater Manchester has taken a major leap toward integrated travel with its Bee Network rolling out contactless tap-on payments on buses, enabling seamless fare capping across buses and trams. It’s one of the clearest signs yet of regions pushing toward London-style multimodal integration.
Driving operator efficiency for a more reliable network
Bus operator efficiency is becoming increasingly critical as the sector adapts to new regulatory expectations, rising passenger demand, and tighter financial pressures. Delivering a reliable, high-performing network now depends on back-office capability and on operational delivery — and 2025 saw a noticeable shift toward modernising the systems that underpin day-to-day bus operations.
Operators are recognising that legacy, siloed tools can no longer support the level of reliability, punctuality and responsiveness that passengers — and local authorities — expect. As a result, the industry is moving rapidly toward joined-up digital systems, replacing fragmented processes with platforms that can manage everything from scheduling to workforce management to real-time service control.
As franchising expands and expectations rise, efficient, well-connected systems will be critical for operators in 2026 and beyond.
Autonomous buses edge closer — but slowly
2025 saw meaningful progress on autonomous buses, with live passenger trials in Cambridge and prior pilots in Scotland, plus shuttle-style deployments in Milton Keynes and Teesside Airport.
Government backing remains strong, with funding and regulatory work paving the way for larger pilots expected from 2026. But significant technological, regulatory and commercial hurdles mean fully driverless buses remain a longer-term prospect rather than imminent mainstream reality.
Multimodal transport becomes a central policy theme
Perhaps the most important long-term trend is the rise of multimodal transport. The UK’s new Integrated National Transport Strategy pushes for joined-up bus, rail, tram, cycling and walking networks.
Major government investment — including £15 billion for city-regional projects — is underpinning this shift. Regions such as Greater Manchester and the West Midlands are already rolling out integrated ticketing, contactless capping and connected networks that will soon include local rail. Wales, too, is embedding multimodal thinking into its Regional Transport Plans.
Across the country, the direction is unmistakable: public transport is being redesigned as a single, interconnected system, not a collection of modes operating in isolation.
Looking ahead to 2026
With franchising rollouts, rapid zero-emission fleet growth, and deeper integration across transport modes all gathering pace 2026 is set to build on this momentum. Operators will face rising expectations on performance, data and collaboration as local authorities take a stronger lead in shaping networks. At the same time, reforms in infrastructure, payments and digital systems will continue to redefine what passengers experience on the ground. After a landmark year of change, the UK bus sector enters 2026 with a clear trajectory: more integrated, more accountable and increasingly central to the nation’s transport future.
Solutions to support the year ahead:
- For planning and managing franchise networks contract management and performance systems and scheduling software to tender with confidence.
- Empowering control room teams to efficiently manage and resolve on-the-day issues to deliver a quality bus service, as well as achieve significant cost-savings with Control360.
- Data / intelligence streamlined with Insights providing management teams with a comprehensive view, enabling them to make well-informed decisions.
- Flexible timetable display solution, allows for efficient and cost-effective turnaround for roadside publicity.
Ready to start driving forward in 2026? Get in touch to build a tailored solution today.
