Cambridge will receive £31 million of government funding for its buses over the next three years, as part of a national package worth £3 billion.

The government will provide the funding in packages of £10 million each year. Mayor of Cambridgeshire and Peterborough Paul Bristow commented that “transport needs to match Cambridge’s growing ambition”.

In a press release, the Department of Transport explained that with this funding covering the next three years, there is hope that Cambridge & Peterborough’s Combined Authority will be given “much-needed certainty to develop and drive forward plans that cater to the needs of their communities”.

Whilst the Combined Authority has not yet made clear what the funds will specifically be used for, the Department for Transport announced that local governments could put it towards “lowering the prices of fares, introducing new routes and zero emission buses or creating safer bus stops.”

Last month, as leader of the Combined Authority which coordinates public transport in the area, Bristow committed to subsiding several rural routes, but decided to stop paying for a route that was costing £100 per passenger.

The funding comes as part of a wider national package announced by the Transport Secretary of £3 billion to local services and infrastructure - within this £309 million will be given to the East of England.

Transport Secretary Heidi Alexander commented,“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.”

“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”, she added.

The funding comes days after the announcement that around 200 bus drivers for Stagecoach in Cambridge will strike over the Christmas period in a dispute over pay as workers voted to reject a deal which would reduce overtime rates.

This announcement also comes amidst community leaders calling on Conservative mayor Paul Bristow to extend the Tiger Pass, a scheme which caps bus fares for under-25s at £1.

A decision is set to be made later this month on whether to continue to offer the discount. The Combined Authority cited “financial challenges involved in securing its future” as one reason for which continuing it might be difficult.

Mayor Bristow hopes to build light rail in the region and restructure the running of bus services to put the Combined Authority in control. He told the Cambridge Independent, “Yes, the level of investment needed is significant, but the return will be far greater”.