Parts of Gloucestershire could have an Uber-style bus service as part of a £20million Government scheme.

Gloucestershire County Council confirmed on Thursday it is expected to bid for the money towards trials of on-demand buses, which can be ordered through an app.

Those services are designed for rural or suburban areas where passenger demand doesn’t justify having fixed routes permanently in place.

The service already operates in Oxford and Liverpool.

The Department for Transport (DfT) announcement comes as part of a wider package of measures for buses.

Transport Secretary Grant Shapps said today Gloucestershire will receive £642,000 to go towards the county council subsidising local bus services.

It’s part of £30m of funding which will go to English local authorities outside of London in 2020, to help them improve or restore bus services that have been cut.

And one town in England could have all-electric buses in a separate £50m fund from the Government.

Local authorities can bid for money to help pay for a new fleet of electric buses.

The DfT said that the winning town would be used as a model by government as it aims to ensure all buses are fully electric by 2025.

However the electric bus trial is expected to focus on an urban area with a self-contained bus network, which is thought to exclude towns in the county.

The Conservatives Group, which runs the county council, said councillors are optimistic the pilot will test technology that could in future be used in Gloucestershire.

Gloucestershire County Councillor Nigel Moor (C, Stow-on-the-Wold) said: “£640,000 is a fantastic boost for bus services in our county – and shows this government really understands what we’ve been saying about how important buses are.

“I’m also excited about the electric bus trial.

“This scheme is going to pioneer the technology all councils need to transition away from diesel, and lays the foundations for carbon neutral travel.”

Transport Secretary Grant Shapps said buses had “a crucial role to play in bringing down emissions”.

He said: “Buses carry more people than any other form of public transport in the UK, and with 200 electric buses able to offset 3,700 diesel cars, it is clear they have a crucial role to play in bringing down emissions.

“But Britain’s first all-electric bus town is just the start. Helping deliver on our manifesto promise, this £170m package will help us to create communities which are cleaner, easier to get around and more environmentally friendly, speeding up journeys and making them more reliable.

“By focusing on efficient and affordable transport, we will make greener journeys the natural choice.”