Bus services will continue to operate at near current levels across the West Midlands until 2025, following an agreement between Transport for West Midlands (TfWM) and the bus operating companies, including National Express and Diamond Bus.

The deal will be significant in heading off the threat of around one third of the region’s bus services being withdrawn or frequencies reduced.

With Government Covid support funding stopped in June, operators faced pressure with costs, steep rises in fuel, maintenance, and staff costs over the last two years, struggling to keep busses on the road.

Andy Street, Mayor of the West Midlands and WMCA Chair, said: “Buses are the backbone of our public transport network - providing a vital daily service for tens of thousands of local people right across our region at the same time as helping us to tackle the climate emergency and reduce traffic congestion on our roads.”

Under the agreement TfWM, which is part of the West Midlands Combined Authority (WMCA) has re-allocated part of the region’s £88m Bus Service Improvement Plan grant to keep services running while a long-term sustainable funding solution is found.

The department of transport awarded this grant to TfWM to be used on initiatives encouraging more people to use buses. Approximately £40 million will now be used to support bus operators to maintain services at their present level. TfWM is still on course to invest in improved bus priority, more electric and hydrogen buses, as well as securing agreements with operators.

Alex Jensen, CEO National Express UK & Germany said: “We welcome the support from Transport for West Midlands which will ensure we can maintain the bus network at the current level until the end of 2024.

“Our many customers depend on our services every day and we are pleased to confirm they can continue to rely on them” she added.