BUS services will get nearly £1 billion in funding in a major budget boost, welcomed by public transport campaigners today.

Transport Secretary Louise Haigh confirmed £712 million in funding for local authorities to improve services, alongside a further £243m for bus operators.

A reformed allocation model has been based on need — for example, an area’s levels of deprivation and population — instead of making areas compete for funding as in previous years.

Ms Haigh said the investment would end “complicated and inconsistent” funding models.

“Buses are the lifeblood of communities, but the system is broken,” she said.

“Too often, passengers are left waiting hours for buses that don’t turn up — and some have been cut off altogether.

“That’s why we’re reforming funding to deliver better buses across the country and end the postcode lottery of bus services.”

Silviya Barrett, of Campaign for Better Transport, said: “With millions of people relying on buses, this funding is hugely welcome.

“It is particularly good news that the money will be allocated based on need, as we have been calling for, rather than making local authorities compete for funding — a process that has led in the past to some glaringly unequal outcomes.

“All communities deserve a reliable, regular and affordable bus service.”

Areas receiving an “unprecedented” amount of funding include Peterborough, the Isle of Wight, Cambridgeshire, Leicester and Torbay.

Combined authorities representing South Yorkshire and Liverpool City region will receive £17m and nearly £21m respectively.

Alison Edwards, of the Confederation of Passenger Transport, said: “Bus passengers deserve a fair funding deal.

“Every pound of public money invested in buses delivers a return of more than £4 in benefits to the environment, to public health and to communities.”