Many residents of Bristol probably noticed last year’s introduction of a brand new fleet of buses roaming the city, the result of a joint £44mn investment by First Bus and Zero Emission Bus Regional Areas (ZEBRA).
This venture has also allowed First Bus to expand its EV fleet in Taunton, Basildon and Weston-super-Mare and fund Bristol’s Hengrove depot to become fully electric.
This upgrade is an important step in reducing emissions for the City of Bristol and its wider network. First Bus plans to further electrify its fleet, grow through franchising and acquisitions and develop new energy-related revenue streams from its decarbonisation and property capabilities.
Low fares help the environment
Whilst greener vehicles benefit the environment, studies have shown that lowering fares has an even larger impact in reducing congestion, carbon emissions and air quality, as it encourages a reduction in car use. Despite this and the ongoing cost-of-living crisis, which has seen 62% of adults report higher expenses than the previous month, First Bus chose to raise fares.
When public money is used to fund bus upgrades for private companies while fares still rise for passengers, it raises questions about who really benefits: the public or shareholders? This reflects a deeper issue within the UK’s privatised transport system, where taxpayers pay twice to fund essential services.
Prices increase despite bus company hitting targets
On 4 January 2026, First Bus increased prices across all ticket types. Compared to 2023, prices have risen on average by 32%, with the largest increase being for Weston day tickets, which are up 52%. The cheapest option is ‘tap on, tap off’, as prices are capped at the daily or weekly rate. Even so, many consumers are feeling the pinch as fares continue to rise, even though the First Group’s 2025 annual report described a year of “strong performance”.
For 2025, operating profit for First Bus hit its target of 10%, with First Group’s total operating profit growing from £204.3mn in 2024 to £222.8mn. The reasons for this profit were cited as –
“operational improvements, network and cost efficiencies, increased driver numbers, our newer electric fleet and the contribution of recently acquired businesses, which offset ongoing inflationary pressures and a £17m[n] reduction in funding.”
Profits and volumes
However, this reduction in funding is offset by the large allocation from the ZEBRA programme, with a total of £40mn given to First Bus by local authority partners across the country.
Furthermore, the H1 2026 report shows 16% growth in earnings per share (EPS) over 26 weeks. Dividends per share are also up 29% (£8mn), with the majority of that paid for by consumers due to higher fares. This profit is closely followed by new acquisitions, bus efficiencies, First Rail performance and a decrease in group costs, totalling £21mn.
These do offset the increase to National Insurance contributions, First Bus cost inflation and IFRS 16 impact, also totalling £21mn. However, during this period, First Bus saw a reduction in volume. With further fare increases from January, it will be interesting to see how volume is affected, especially when the £3 bus fare cap is removed in March 2027.
Lower bus fares, lower emissions
The recent “kids go free” scheme in the West of England saw free travel over the Christmas and summer period for children aged 5-15 in the region. The scheme was funded by £13.5mn bus grant funding secured from the UK Government’s Department for Transport.
The scheme saw a 44% increase in passengers over the summer and a 50% increase over Christmas, demonstrating how low-cost public transport encourages use, which is better for the environment and the community that uses it.
However, there are no schemes to support the adult taxpayers who have funded the initiative. Adults who rely on the bus may simply travel less; those who can walk, cycle, hire a scooter, or drive may choose these instead when weighing convenience versus cost. Although walking and cycling would be a positive step towards Bristol’s green plans, they aren’t always practical and accessible.
Put consumers and the environment first
Whilst Bristol Council has plans to improve the bus network’s connectivity, if it is unaffordable, many will still be disadvantaged, especially those already cut off from economic opportunity. Those in communities further out of the city with poor public transport options aren’t likely to walk or cycle, but may choose to drive, which will only increase pollution and emissions.
Though more money could be spent to counteract this by the council, it could be argued that First Bus have already benefited enough from funding, and it should be them who consider their consumers, and by extension, the environment over their shareholders.
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