Low carbon bus funding will boost UK automotive manufacturing

23 March 2012 #SMMT News

Government today announced the winning bids under the third round of the Green Bus Fund for hybrid, electric and gas buses. The £31 million Green Bus Fund will see 439 new low carbon buses come to UK roads, the majority of which are expected to be manufactured in the UK.

Local Transport Minister Norman Baker said, “This funding means a better deal for passengers and encourages more people to travel by bus. It updates and improves services and infrastructure, reduces congestion, gives quieter journeys and with the introduction of new carbon friendly buses, reduces fuel costs and CO2 emissions, creating a greener network”.

The 439 new buses will be a combination of 128 single-deck and 311 double-deck buses that will come into service from spring 2013. Through significant investments made by manufacturers, this latest wave of fuel-efficient buses will save over 9,000 tonnes of CO2 emissions each year.

Five bus manufacturers will benefit from orders for their eco-friendly hybrid, electric and gas buses. They comprise; Alexander Dennis Limited, MAN, Optare, Volvo and Wrightbus, all of which are based in, or partly in, the UK. 26 bus operators including Arriva, First and Stagecoach will receive more than £22 million, with more than £8 million split between five local authorities.

By switching to low-carbon buses, the winners will also be eligible to claim additional government subsidy through the Bus Service Operators Grant to run these buses. Bus operators and local authorities will be given six pence per kilometre to support them with operational costs


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