Haigh said: “This represents record capital investment to the majority of places and a once-in-a-generation reform plan that aims to deliver London-style buses to every corner of the country – including those areas that are usually overlooked.”
The announcement comes ahead of the Buses Bill, which aims to give local transport authorities across England new powers to run their own services.
An extra £151m will also fund a cap in single bus fares outside London, which rose to £3 last month, until the end of 2025.
The Liberal Democrats have called for the government to U-turn on the decision to raise the cap, with the party saying it will hit both commuters and local businesses.
Sir Ed Davey said on Friday: “The fare cap increase is like a bus tax for people across the country, impacting bus users and commuters already struggling to make ends meet.
“MPs must be given a say on this bus fare hike on behalf of their constituents.”
But the DfT said the fare cap introduced by the previous government was due to expire at the end of 2024 and some fares would have soared unless it intervened.
“Fares will only be allowed to increase with inflation in the normal way, and the £3 bus fare cap will lead to savings of up to 80% on some routes, keeping bus tickets affordable across the country,” it said.
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