Bus services in every part of England will be boosted by nearly £1bn of new funding, the government is pledging.

The Department for Transport last month announced the investment for 2025.

Confirming details of its plans, the government said the money will be allocated based on need, population and levels of deprivation – instead of making areas compete for investment as in previous years.

In total, there will be £712m for local authorities to improve services, alongside a further £243m for bus operators.

The DfT says say Leicester, the Isle of Wight, Torbay, Southend, Cambridgeshire and Peterborough are set to receive “unprecedented” levels of investment.

About 3.4 million people in England travel regularly by bus, making it the most commonly used mode of public transport.

Local authorities in all English regions will be able to introduce new bus routes, make services more frequent and protect crucial routes, the DfT says.

It added the money will allow more urban areas to maintain high levels of service. Meanwhile, rural communities and small towns will be able to offer more services.

Writing in the Sunday Mirror, Transport Secretary Louise Haigh said: “It’s simple: buses need to turn up, be affordable, and be punctual. Our funding helps them do just that.”

Haigh said: “This represents record capital investment to the majority of places and a once-in-a-generation reform plan that aims to deliver London-style buses to every corner of the country – including those areas that are usually overlooked.”

The announcement comes ahead of the Buses Bill, which aims to give local transport authorities across England new powers to run their own services.

An extra £151m will also fund a cap in single bus fares outside London, which rose to £3 last month, until the end of 2025.

The Liberal Democrats have called for the government to U-turn on the cap decision, with the party saying it will hit both commuters and local businesses.

Sir Ed Davey said on Friday: “The fare cap increase is like a bus tax for people across the country, impacting bus users and commuters already struggling to make ends meet.

“MPs must be given a say on this bus fare hike on behalf of their constituents.”

But Department for Transport said the fare cap introduced by the previous government was due to expire at the end of 2024 and some fares would have soared unless it intervened.

“Fares will only be allowed to increase with inflation in the normal way, and the £3 bus fare cap will lead to savings of up to 80% on some routes, keeping bus tickets affordable across the country,” it said.