Derby hosts launch of national report on economic impact of buses

A new national report showing the huge impact buses make on the economy has been launched in Derby.

The Confederation of Passenger Transport commissioned KPMG to produce the report called The Economic Impact of Local Bus Services.

Recently, the results of the research were unveiled at a launch event held at QUAD.

The independent research outlines the scale and breadth of economic benefits delivered by local bus services to the British economy. It also highlights how investment in them by government offers excellent value-for-money.

Tom Morgan, managing director of bus operator trentbarton, who attended the launch, said: “We welcome this report and echo its findings, including that every £1 spent on infrastructure to prioritise buses generates a return of more than £4.50 for the local economy.

“Every day we run our bus services knowing how important they are to our customers and the valuable role that together we play in reducing congestion and pollution.

“We call on our local and regional political leaders to reward bus users for travelling on one of the greenest modes of travel – by improving their journey through better roads and junctions which prioritise the bus. It would aid social mobility and also bring significant benefits to the local environment.”

Claire Ward, Mayor of the East Midlands, said: “The launch of this new report by the CPT is both timely and vital, highlighting the essential role that buses play in driving the economic and social vibrancy of our region.”

CPT commissioned the research to provide an up-to-date appraisal of the scale and contribution buses makes economically (and socially) to inform national and regional level for investment in better services and infrastructure.

It found that bus operators directly employ 105,000 people and support employment of a further 53,000 in the sector’s supply chain – which provides an £11 billion boost to the British economy.

It also found that bus services deliver other economic benefits, with passengers spending £1 in every £10 spent on the High Street – contributing a total of almost £40 billion every year to local economies.

The report said commuters earn £72 billion a year and pay taxes of £15 billion.

Alongside health and environmental benefits, the research found that a typical package of public investment to improve infrastructure for buses and support better services, can generate returns of £4.55 for every £1 invested.

The research also shows that buses deliver a host of wider benefits for both passengers and  local communities – including access to jobs, education and training worth £8.7 billion, health benefits worth £2.8 billion, support for volunteer work valued at over £1 billion, and a reduction in congestion worth £600 million per year.

Claire said: ““In Derbyshire and Nottinghamshire, the economic impact of our bus services is profound, with £1.8 billion generated in the East Midlands Combined County Authority area alone.

“This report confirms what we already know: buses are not just a mode of transport but a cornerstone of our local economy.

“As we look ahead to new opportunities with the Better Buses Bill, it is crucial that we continue to invest in our bus networks, ensuring they remain sustainable, innovative, and responsive to the needs of our communities.

“By working closely with operators, we can deliver a network that truly benefits everyone in the East Midlands.”

Scott Knowles, chief executive of East Midlands Chamber, said: “Local bus services are incredibly important to the business community.

“Employers rely on local bus services as a key option for employees travelling to and from work as well as growing their talent base from further afield, supported by bus routes.

“Travelling by bus also creates opportunity for a diverse range of employees for whom access to employment would be challenging without easily accessible bus routes.”

Speaking at the launch, Graham Vidler, chief executive of the Confederation of Passenger Transport, said: “This new research shows the tremendous economic contribution driven by the 100,000 people who work in the bus sector, the 50,000 people working in our supply chain, and the millions of people who use buses every day.

“It highlights how buses support every aspect of our lives, boosting local economies, connecting communities, improving health, and protecting our environment.

“It also shows that investing in better bus services is exceptional value-for-money and offers a speedy, flexible way to support green growth across the whole country.”

Welcoming the research, Minister for Local Transport Simon Lightwood MP, said: “We know how important buses are to communities as an affordable, green travel choice which help grow our economy and provide access to jobs too.

“Our Buses Bill will help local councils transform their bus networks to deliver better value for money and more reliable services, for passengers.”

To read The Economic Impact of Local Bus Services report in full visit https://www.cpt-uk.org/media/couiyy5y/240902-economic-impact-of-bus-final.pdf.