(Alliance News) - Shares in Stagecoach Group PLC were on the rise Tuesday after the UK Department for Transport has made GBP283 million available for the phased increased of bus, tram and light rail services in England.
Shares in the FTSE 250-listed transport firm were 10% higher in London on Tuesday morning at 65.55 pence each.
The UK government is looking at a phased increase in transport services in England, after normal bus, tram and light rail networks across the UK were mostly paused in March as part of the effort to stop the spread of Covid-19.
"UK government guidance to public transport operators in England on social distancing means that the current capacity of services and associated passenger revenue is significantly reduced. The government has now confirmed it plans to pay for more comprehensive services," Stagecoach said.
As part of this, the Department for Transport has made GBP254 million available for buses and GBP29 million for trams and light rail to help increase the frequency and capacity of services.
Perth, Scotland-based Stagecoach said: "Discussions will continue between the government and industry representatives regarding future arrangements, and we will assess the full detail of the government's plans as these are confirmed."
Chief Executive Martin Griffiths added: "We are pleased that the government has recognised the importance of safe and sustainable public transport now and for the future. We are uniquely placed to drive the country's recovery, helping rebuild our regional economies, reconnect people and their families, and support the country's long-term objectives around decarbonisation, improved air quality and better health.
"This funding is designed to help transition our public transport networks from lockdown to more normal levels. It is important the right level of resources remain in place to ensure public transport operators can continue to provide local communities with the services they need."
Stagecoach's Griffiths said bus operators remain in discussions with the Scottish and Welsh governments on how to increase services.
By Paul McGowan; paulmcgowan@alliancenews.com
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