Industry costs have risen by an average of 4% compared to the previous year, according to the CPT’s latest Cost Monitor report
Since 2022, the Confederation of Passenger Transport (CPT) has been compiling its Cost Monitor to track changes in bus and coach costs, to gather detailed data to underscore its work representing the sector, and to enable contributing operators
to benchmark their costs against industry averages. The report collates detailed cost data from 52 operating companies responsible for more than 17,000 peak vehicles and 67% of bus mileage operated in Great Britain. The latest report shows that operating costs rose by 4% in cash terms in the 12 months to February 2025, driven primarily by labour and engineering inflation, whilst labour costs increased by 6.6% and engineering costs by 8.6% in the same period, putting pressure on service delivery and margins despite modest fuel savings. The report also found that regional variations remain high, with Wales and English shires seeing the sharpest increases in key cost categories.
The CPT highlights that the headline figure reflects broad-based inflationary pressures on bus operators across the country, despite a modest easing of fuel prices.
The 6.6% increase in labour costs reflects higher wage settlements and continued recruitment and retention challenges across the industry, whilst the 8.6% rise in engineering costs is put down to rising prices for parts, repairs, and servicing. Depreciation and leasing costs rose by 5%, suggesting ongoing investment in new and more efficient fleets, particularly electric and low-emission vehicles. Claims and insurance costs showed a slight overall decline of 3.1%, while overheads fell by 7.1%, pointing
to efficiency gains in back-office and administrative functions. And although fuel-driven vehicle running costs fell by 0.4%, these savings were not sufficient to offset wider cost pressures across core operational areas.
While the Great Britain average shows a 4% increase, the CPT found that regional variation was again notable, including:
● Wales recorded the highest overall cost increase at 5.8%, driven by a 159.9% surge in semi-variable costs and a 30.2% rise in overheads, despite large reductions in running and engineering costs;
● English shire areas and London each recorded a 4.4% increase, with shire areas seeing particularly sharp rises in labour and engineering costs, up by 9.3% and 16.5% respectively;
● Scotland and English metropolitan areas recorded more moderate overall cost increases of 3.2% and 2.1% respectively, although both regions experienced significant jumps in specific categories such as claims and insurance. Commenting on the results, CPT Operations Director Keith McNally said: “While a 4% increase may sound modest, it represents a significant ongoing burden on operators who are already running services on tight margins. Labour and engineering costs together represent around 65% of total costs and there were notable increases in these areas. With the fare cap reimbursement allocations and local funding settlements under review, it’s critical that policy decisions reflect the real, rising cost of keeping Britain’s bus networks moving. Stability and certainty in funding will be key to protecting routes, supporting jobs, and delivering the green transport future we all want to see.”
Data for the latest survey was collected between March and May 2025, covering a representative week of operations in February 2025.
