Bus operator Go-Ahead has announced plans to invest half-a-billion pounds to build hundreds of UK-made electric buses to decarbonise its fleet.

The firm’s investment is expected to support 500 manufacturing jobs as well as create a dedicated manufacturing line and partnership with Northern Ireland-based bus maker Wrightbus.

Plans involve funding up to 1,200 new zero-emission buses over the next three years to help accelerate the transition to greener transport in areas such as Plymouth, Gloucestershire, East Yorkshire, London and the Isle of Wight.

The Department for Transport (DfT) said the investment will also support an additional 2,000 jobs across the wider UK supply chain by 2026.

To coincide with the announcement, Transport Secretary Louise Haigh is set to meet industry leaders on Tuesday, including Wrightbus owner Jo Bamford and chief executive Jean-Marc Gales.

She plans to reiterate the Government’s commitment to decarbonising local transport, supporting jobs and fostering an environment for investment in UK manufacturing, the DfT said.

Also on Tuesday, the Transport Secretary is expected to unveil plans to create a new UK bus manufacturing expert panel.

The DfT said further details would be confirmed in due course but the aim was to bring together industry experts and local leaders to discuss how councils could deliver on their transport ambitions and seize opportunities to embrace green transport technologies.

Next week, Ms Haigh plans to hold several bilateral meetings with global business leaders at the Labour government’s first international investment summit in a bid to attract cash to the UK’s transport sector.

She said: “The number one mission of this Government is growing the economy. The half-a-billion pounds Go-Ahead is announcing today shows the confidence industry has in investing in the UK.

“This announcement will see communities across the country benefit from brand new, state-of-the-art green buses – which will deliver cleaner air and better journeys.

“We’re creating the right conditions for businesses to flourish, so we can support jobs and accelerate towards decarbonising the transport sector.”

The latest announcements come as part of wider Government commitments to improve bus services and deliver greener transport.

Its new Buses Bill is set to be introduced in Parliament by the end of this year, aiming to improve bus services nationwide.

The DfT also said that for every vehicle manufactured, 10 trees would be planted by Go-Ahead and Wrightbus in the towns and cities where the buses are deployed.

Matt Carney, chief executive of Go-Ahead Bus, said: “This multi-million-pound investment and partnership with WrightBus will accelerate the transition to zero-emission fleet across the UK.

“We are proud to be working in partnership with the UK Government and local authorities to deliver transformational environmental change for communities, while supporting UK jobs and the growth of the country’s supply chain.”