Somerset's bus services will benefit from millions of pounds of further investment following an announcement from central government.

Chancellor of the exchequer Rachel Reeves MP announced in her first budget on October 30 that more than £1bn of extra funding would be provided for local bus services in the last year – including £150m nationwide to keep single fares capped to a maximum of £3 until the end of 2025.

The Department for Transport (DfT) announced on Sunday (November 17) that £712m would be provided for local authorities to improve bus services alongside £243m for bus operators – with areas which have been "historically under-served" receiving a particular boost.

Transport secretary Louise Haigh MP confirmed on Monday (November 18) that £83m of this funding would be shared across councils in the south west – with Somerset Council receiving £6,849,770 to boost the county's bus services.

Ms Haigh said the funding was intended to "end the bus postcode lottery" and would be followed up by new legislation (in the form of the upcoming Buses Bill) to allow local authorities to "take back control of services", following in the footsteps of similar efforts in Greater London and Greater Manchester.

In a bid to make services more reliable and consistent, the Labour government has changed the funding formula for bus services, with monies being allocated on the basis of place need, deprivation and population levels – meaning (at least in theory) that areas should not have to compete for funding, as under previous administrations.

Ms Haigh added: "The value of regular and reliable bus services cannot be understated.

"For far too long, the south west has been suffering from unreliable services with buses hugely delayed, or not even turning up at all.

"This funding kick-starts the bus revolution to bring an end to the postcode lottery of bus services, drive economic growth and make sure people have proper access to jobs and opportunities.

"We've already committed more than £150m to extend the bus fare cap and keep fares low, and this nearly £1bn of further funding will mean local routes are protected, reliability is improved and the passenger is put first."

This funding comes on top of £2.2m of funding from the zero emission bus regional area (ZEBRA) scheme, with a further £12.5m going to First Bus South, which operates Buses of Somerset.

Construction work has started at First Bus' depots in Taunton and Minehead to allow these electric vehicles to enter service by the middle of 2025.

Somerset Council said it could not currently confirm how the funding would be spent, including any specific services which could be enhanced.

A spokesman said: "This is positive news in terms of supporting our aims to improve bus provision in Somerset.

"In broad terms, while it appears to be a fairer allocation, there's still some way to go in terms of addressing the balance for public transport deprived rural areas.

"We are awaiting full detail on the funding from the DfT. Once we have this information we can look at how funding could be used to maximum effect."

Sarah Dyke, the Liberal Democrat MP for Glastonbury and Somerton, welcomed the announcement but asked for further clarity on how the money could be spent on enhance local services.

Speaking in the House of Commons on Monday (November 18), she said: "The new funding for bus services in Somerset is welcome, but my constituents often tell me that they need bus-rail links to connect areas not served by railway stations.

"Will the secretary of state outline the exact conditions for what each tranche of money must be spent on, to allow the council to plan much-needed improvements to services in rural areas?

Ms Haigh replied: "The way the formula has been designed explicitly benefits rural areas, because a third of the allocation is dependent on bus mileage; that is why a number of areas, including Somerset, have done much better out of today's allocation than in previous years.

"We are removing the controls that were previously required.

"All the funding will have to be spent on buses, but we believe it is right that local transport authorities take those decisions themselves rather than being constrained by central diktat from Whitehall."

Gideon Amos, the Lib Dem MP for Taunton and Wellington, said the funding was welcome when taken alongside other improvements which were being delivered as part of Somerset Council's bus service improvement plan (BSIP).

He said: "The £6m funding for Somerset is clearly welcome, although it is much less than was needed, considering that Somerset was rated as having the worst county bus service in the country.

"I particularly welcome the ending of the lottery that sets one community against another.

"Will the secretary of state congratulate the Somerset Bus Partnership volunteers who, working with my Lib Dem colleagues now running Somerset Council, prevented the previous Conservative-run Somerset County Council from closing the park and ride, got night buses going and have begun a new transport hub since the bus station in Taunton was closed as a result of Conservative privatisation?"

The new Taunton transport hub on Tower Street will be delivered by mid-2025, with all the funding for the project coming from central government grants.

Ms Haigh responded: "It sounds like the Somerset volunteers are doing a cracking job.

"I am very happy to congratulate them and to welcome the £6.8m of funding announced for Somerset today [November 18]."

In addition to nearly £7m for the Somerset Council area, the DfT has allocated £4,878,543 for services in the North Somerset Council area (which includes Weston-super-Mare and the surrounding villages).

Councillor Hannah Young, executive member for highways and transport, said: "We're delighted to welcome the DfT's announcement of just over £4.8m in funding to help us to work with local bus operators to maintain and improve vital bus services, and to keep fares as low as possible for passengers.

"We'll be planning how the funding is used as soon as we receive more detail, but the first priority will be maintaining existing services and preventing cuts.

"In the meantime, I'm pleased to see this clear commitment to local public transport which is critical for so many people to get to school, work or college and stay active and well.

"I'd like to also encourage residents and businesses to join one of our upcoming bus user forums on November 25 and 27 to put forward your views on where we most need to support and invest in our North Somerset bus network and services."

A further £14.8m has been awarded to the West of England Combined Authority