Sadiq Khan commits £20m to boost London bus use as passenger numbers slip

On Thursday, Sir Sadiq Khan confirmed an additional £20m investment aimed at persuading more Londoners to use buses, after passenger numbers fell for the first time since the pandemic.

The funding, approved as part of the mayor’s annual budget by the London Assembly, will allow Transport for London to pursue what City Hall describes as “fares innovation”. This could include reduced fares at certain times and, potentially, free travel on new routes when they launch.

Bus journeys dropped from 1.869 billion to 1.842 billion last year. London TravelWatch attributed the decline in part to slower journey times across the network. Average bus speeds fell to 9.17mph in 2024-25, down from 10.27mph four years earlier, according to City Hall data.

Sir Sadiq told the London Assembly Budget and Performance Committee that innovation “costs money” but would be central to increasing both ridership and revenue. He said TfL would be tasked with finding ways to encourage greater bus use, particularly in outer boroughs where services act as a “lifeline”.

Assembly Member Elly Baker, the Labour group’s transport spokesperson, welcomed the move. She said keeping public transport affordable was vital during the cost of living crisis and described the focus on bus fares as “incredibly welcome”. Buses, she added, served many residents “who don’t have any options”, including older and disabled passengers and those on lower incomes.

Bus use has been in gradual decline since its peak of 2.4 billion journeys in 2014, according to figures from the Department for Transport. The mayor has set a target for 80% of all trips in London to be made by walking, cycling or public transport by 2041. London TravelWatch estimates that achieving this would require bus journeys to rise by around 40%.

Michael Roberts, chief executive of London TravelWatch, told Assembly members in December that a 10% reduction in bus speeds typically results in a 6% fall in demand.

The £20m allocation forms part of an additional £142.6m identified between the draft and final budgets following stronger than expected business rates and council tax returns. The final budget also includes £1.26bn for policing, alongside £250m increases for both TfL and the London Fire Brigade.

For more updates on London transport policy, City Hall decisions and how they affect your daily journey, follow EyeOnLondon and join the conversation shaping the capital’s future.

[Image Credit | © London Vacation Rentals]

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