Bus services across the South East are set to receive a share of £369 million in government funding aimed at improving services and infrastructure.

The funding, which will be allocated over several years, is intended to give councils greater flexibility over how money is spent, including on service improvements, fare initiatives and new vehicles. Examples highlighted include Medway’s free “Catch the Bus” weekends and the introduction of electric buses on the Isle of Wight.

The Department for Transport says the move to multi-year funding is intended to give councils greater certainty for longer-term planning, after years of shorter settlements.

The announcement follows the Bus Services Act becoming law in October, giving local authorities greater powers over how local bus services are run and adding protection for some socially necessary routes.

Transport Secretary Heidi Alexander said: “After years of decline, better buses are finally on the way. Our £3 billion investment will give local authorities the long-term funding they need to deliver lower fares, more frequent services, and the reliable transport that communities depend on. "We've already extended the £3 bus fare cap to help people with their everyday journeys, and now we're backing this with the funding councils need to transform their local services. "This is part of our wider plan to make public transport cheaper across the country – we've frozen rail fares for the first time in 30 years and we’re building Great British Railways to deliver better value for passengers. "Whether it's the bus to work, the train to see family, or getting to a hospital appointment, affordable transport is essential to bearing down on the cost of living and growing our economy."

Minister for Roads and Buses Simon Lightwood said: “For too long passengers have been let down by unreliable services, sub-standard bus stations and over a decade of routes being cut. “This £3 billion boost will change this, providing passengers with lower fares, more frequent and reliable services and safer journeys – helping both ease the cost of living and making it easier for people to get to work, hospital appointments and social plans, boosting the economy.”

The funding will combine several existing bus funding streams into a single allocation. Money is expected to be distributed to local authorities across the South East each year up to 2028/29, with councils deciding how it is spent locally.

On the Isle of Wight, council transport strategy manager Stewart Chandler said: “We are very happy to see multi-year bus funding allocations for local authorities announced this week following previous settlements and Government funding for the multi-million pound improvement works at Ryde Transport Interchange. “The funding will also compliment further projects currently underway as part of the Bus Service Improvement Delivery Plan, such as the introduction of 31 electric buses and the Island Green Link. The way we travel affects almost every part of Island life, from job opportunities and access to healthcare, to the air we breathe and the safety of our streets, and this funding will support enhancements to our local bus services.”

The Government says the bus funding forms part of wider measures including the extension of the £3 bus fare cap, a rail fare freeze and future reforms through Great British Railways.