Councils across the UK are being urged to bid for a slice of the £5 million that the government is making available through its Clean Bus Technology Fund.

Local authorities are eligible to apply for £1 million each and the money can be used to upgrade their buses with pollution-reducing technology like exhaust after-treatment equipment and more efficient engines.

The transport sector is responsible for a sizeable chunk of the UK's carbon output and the government is keen to promote more eco-friendly services.

Local transport minister Norman Baker believes the scheme will help to reduce emissions produced by older vehicles in more built-up areas of the UK.

"It will lead to real improvements in air quality on some of our more polluted streets, as well as helping stimulate jobs and growth in the bus and retrofit industries," he remarked.

The Clean Bus Technology Fund is in addition to the £12 million that was recently earmarked for the latest round of the Green Bus Fund.

Overall, the latter scheme is worth £87 million and will help to cut carbon pollution by 28,000 tonnes per year.