Select Committee · Transport Committee

Buses connecting communities

Status: Closed Opened: 28 Nov 2024 Closed: 4 Mar 2026 15 recommendations 18 conclusions 1 report

In many parts of the country, bus services and passenger numbers are in decline. The Transport Committee will examine the role of buses in connecting rural communities with nearby towns and suburban areas. The inquiry will evaluate the effectiveness of recent Government policy in tackling the decline in bus services. It will explore the social …

Clear

Reports

1 report
Title HC No. Published Items Response
3rd Report – Buses connecting communities HC 494 13 Aug 2025 33 Responded

Recommendations & Conclusions

18 items
1 Conclusion 3rd Report – Buses connecting communiti… Deferred

Significant disparities in public transport connectivity exist across UK communities.

In larger cities like London, getting from A to B can be as simple as turning up and boarding. In many smaller towns and rural areas, however, whole communities can be cut off with no service at all, or have services that run so infrequently that they do not meaningfully …

Government response. The government acknowledges the potential benefits of standardized service levels but notes that implementing a national minimum level is challenging due to regional differences. It reiterates its commitment to devolving greater control and consolidating funding for local authorities, and states …
Department for Transport
2 Recommendation 3rd Report – Buses connecting communiti… Deferred

Adopt ambition for local authorities to provide minimum public transport connectivity.

The Department should adopt an ambition for local transport authorities to provide by the end of this Parliament a minimum level of public transport connectivity, supported by long-term funding. As part of this, the Department should publish evidence-led guidance on expected service levels based on settlement type, to improve consistency …

Government response. The government agrees in principle on the benefits of multi-year, long-term funding and confirms existing multi-year bus funding. It commits to simplifying funding streams from 2026/27 and will explore the possibility of a five-year funding settlement for bus services with …
Department for Transport
3 Conclusion 3rd Report – Buses connecting communiti… Deferred

Short-term funding for bus services hinders local authorities' improvement efforts.

The short-term nature of funding for bus services has hampered local authorities’ ability to improve services. Five-year settlements in other transport sectors like rail and the strategic road network have enabled greater certainty and promoted strategic planning. Bus services, the most widely used form of public transport, require a similar …

Government response. The government stated it is reviewing the Local Authority Bus Grant formula for 2026/27 allocations and will consider the recommendation, but it did not commit to providing five-year funding settlements for bus services to ensure long-term certainty.
Department for Transport
4 Recommendation 3rd Report – Buses connecting communiti… Deferred

Move to a five-year funding settlement for bus services by end of Spending Review.

We welcome the Department’s intention to move towards multi-year funding for buses but believe it would be beneficial to go further. The Department should move by the end of the current Spending Review period to a five-year funding settlement for bus services, for both capital and revenue spending. 46 This …

Government response. The government agrees in principle on multi-year funding and confirms existing multi-year allocations. However, it commits only to exploring a five-year settlement with HMT as part of the next Spending Review.
Department for Transport
5 Conclusion 3rd Report – Buses connecting communiti… Deferred

Current Bus Service Improvement Plan funding formula neglects distinct challenges of rural areas.

The Department’s shift to needs-based allocation of Bus Service Improvement Plan funding is a welcome and necessary step away from competition. However, the current formula does not explicitly reflect the distinct challenges faced by rural and more isolated areas, such as lower population density, longer journey distances and higher per- …

Government response. The government confirms the current funding formula is interim and commits to reviewing it for 2026/27 allocations. It states that it will actively consider the recommendation for a dedicated rural weighting in finalising the new formula.
Department for Transport
6 Conclusion 3rd Report – Buses connecting communiti… Deferred

Introduce a rural weighting into the BSIP funding formula for low-density areas.

The Department should consider introducing a rural weighting into its revised Bus Service Improvement Plan funding formula to reflect the higher per-passenger costs and structural challenges of serving low-density areas. This would help ensure that network improvement ambitions are not undermined by geographic disadvantage. (Recommendation, Paragraph 36)

Government response. The government did not address the recommendation to introduce a rural weighting into its funding formula, instead stating it provides significant funding to LTAs and expects it to be used to support services.
Department for Transport
7 Conclusion 3rd Report – Buses connecting communiti… Deferred

Current Bus Service Operators Grant disadvantages rural areas and conflicts with decarbonisation goals.

The current Bus Service Operators Grant structure appears to disadvantage rural and low-demand areas, where lower fuel consumption per kilometre and longer average journey lengths can reduce the level of support received. This funding model does little to reflect the operational realities of low-density networks. As the sector transitions away …

Government response. The government did not respond to the conclusion about reforming the Bus Service Operators Grant due to its structure and misalignment with decarbonisation goals, instead discussing guidance for local authorities on socially necessary local services.
Department for Transport
9 Conclusion 3rd Report – Buses connecting communiti… Deferred

Statutory duty for socially necessary services lacks funding and minimum provision requirements.

The Department has not made clear what specific improvements to local bus services it expects the duty to list socially necessary services to deliver. Designating a service as ‘socially necessary’ under an Enhanced Partnership will not automatically guarantee its long-term provision or trigger additional funding, nor will it necessarily improve …

Government response. The government did not address concerns regarding the practical effectiveness of the duty to list socially necessary services due to a lack of ring-fenced funding or operator commitment. Instead, it outlined its commitment to supporting safe and accessible bus stops.
Department for Transport
10 Conclusion 3rd Report – Buses connecting communiti… Deferred

Require ring-fenced funding and minimum operator provision for socially necessary bus services.

The Department should ensure that there is funding to support the provision of socially necessary services by ring-fencing a dedicated portion of its bus grant funding or by other means. This will help ensure that the duty to identify such services has practical effect and is not undermined by competing …

Government response. The government did not address the recommendation for ring-fenced funding for socially necessary services or operator commitments to minimum provision. Instead, it discussed the Integrated National Transport Strategy and efforts to improve timetable coordination across transport modes.
Department for Transport
11 Conclusion 3rd Report – Buses connecting communiti… Deferred

Require local transport authorities to use funding for enhancing sustainable local bus services.

Growing fare box revenue from commercially viable routes is another possible source of support, in certain circumstances, for socially necessary services. The Department should require local transport authorities to consider using grant or fare box funding to enhance existing local bus services. In exercising the duty, the authority must have …

Government response. The government did not commit to requiring local transport authorities to consider using grant or fare box funding to enhance bus services and grow the network. Instead, it focused on supporting LTAs with franchising models through pilots and developing a …
Department for Transport
14 Conclusion 3rd Report – Buses connecting communiti… Deferred

Require local authorities to identify and address unmet need for new bus services.

The Department should make clear that local transport authorities operating within Enhanced Partnerships should not only maintain existing socially necessary services but should also be expected to identify and address areas of unmet need and potential for new services. The Department’s vision should be for local authorities to preside over …

Government response. The government did not address the recommendation for LTAs to actively grow the bus network and address unmet need. Instead, it focused on extending the £3 National Bus Fare Cap until March 2027 and considering future options for fare support …
Department for Transport
15 Conclusion 3rd Report – Buses connecting communiti… Deferred

Absence of national framework for bus stop infrastructure and real-time information

No national framework or clear design standard to improve the overall quality of bus stop infrastructure or real time information currently exists. Poor quality facilities like damaged shelters or seats and missing or inaccurate real time information undermine bus networks by deterring passengers. People without digital access, or whose bus …

Government response. The government did not address the conclusion about the absence of national standards for bus stop infrastructure and real-time information. Instead, it discussed the unaffordability of free travel for under-22s and local approaches to youth concessions.
Department for Transport
16 Recommendation 3rd Report – Buses connecting communiti… Deferred

Establish minimum standards for bus stop facilities and real-time information provision

In order to increase ridership, the Department should establish minimum standards for bus stop facilities and the provision of real time information at bus stops where appropriate. While bus stops are used in different ways and a one-size-fits all approach may not be appropriate, improved bus stop standards should be …

Government response. The government did not address the recommendation to establish minimum standards for bus stop facilities and real-time information. Instead, it discussed the complexity of regulations for Demand Responsive Transport (DRT) and Community Transport (CT) and their integration into the wider …
Department for Transport
17 Conclusion 3rd Report – Buses connecting communiti… Deferred

Bring forward proposals for guidance on integrating bus timetables with other transport modes

The Department should bring forward proposals as part of its upcoming Integrated National Transport Strategy for guidance on how local authorities and transport providers can achieve more effective integration between bus timetables and those of other transport modes. (Recommendation, Paragraph 65) Facilitating the transition to franchising

Government response. The government acknowledges the importance of the issue for the DRT sector but deflects responsibility for VAT policy to HMT, stating DfT will continue to highlight sector concerns rather than addressing the recommendation for guidance on bus timetable integration.
Department for Transport
19 Conclusion 3rd Report – Buses connecting communiti… Deferred

Expand Bus Centre of Excellence to provide dedicated franchising support for rural authorities

The Department should expand the Bus Centre of Excellence (BCoE) to include a dedicated support strand for rural and other local transport authorities which may struggle to implement franchising successfully within their current capacity. This strand should focus on building local capacity by providing access to legal and procurement advice …

Government response. The government discusses implementing Outcomes Frameworks for mayoral authorities and a Bus Indicator Pilot to extend outcomes-based approaches for accountability, but does not address the recommendation to expand the Bus Centre of Excellence for capacity building support.
Department for Transport
24 Conclusion 3rd Report – Buses connecting communiti… Deferred

Absence of clear national strategy for bus fares in England

Bus fares in England have risen faster than inflation and more steeply than other transport modes. While the fare cap has been broadly welcomed as a way of reining in unaffordable fares, it is a short-term measure, not a substitute for long-term policy. There is no clear national strategy guiding …

Government response. The government notes that LTAs can use existing funding for fare initiatives and has extended the national bus fare cap until March 2027. It commits to considering options for the cap's eventual end and will bring stakeholders together to explore …
Department for Transport
25 Recommendation 3rd Report – Buses connecting communiti… Deferred

Develop clear strategic priorities for bus fares with local transport authorities within 12 months.

The Department should develop, in partnership with local transport authorities and within 12 months, clear strategic priorities for what bus fares are aiming to achieve. It should articulate the strategic purpose of fare structures and guide consistent, transparent fare-setting at the local level. These priorities need to produce a coherent …

Government response. The government defers the development of clear strategic priorities for bus fares, stating it will consider options for the eventual end of the National Bus Fare Cap and bring stakeholders together to explore future models for fare support and structure. …
Department for Transport
30 Recommendation 3rd Report – Buses connecting communiti… Deferred

Reform VAT rules for DRT services with Treasury, recognising them as public transport.

The Department should consider, with the Treasury, reform to the current VAT rules applicable to DRT services. This should aim to recognise the character of DRT as a public transport service, even when vehicles smaller than a Public Service Vehicle are used. (Recommendation, Paragraph 112) A strategy for buses

Government response. The government recognises the issue but states VAT policy rests with HMT and any changes would need wider tax policy consideration. DfT has conveyed the sector's concerns to HMT and will continue to highlight them, but does not commit to …
Department for Transport

Oral evidence sessions

4 sessions
Date Witnesses
14 May 2025 Simon Lightwood MP · Department for Transport, Stephen Fidler · Department for Transport View ↗
26 Mar 2025 Alistair Hands · Arriva Group, Graham Vidler · Confederation of Passenger Transport, Judith Barker · Cambridgeshire and Peterborough Combined Authority, Martin Dean · The Go-Ahead Group, Miriam Binsztok · Cornwall Council, Mr Damien Jones · Local Government Association, Mrs Naomi Green · England's Economic Heartland, Stephen Rhodes · Transport for Greater Manchester View ↗
12 Mar 2025 Caroline Whitney · Community Transport Association, James West · Padam Mobility, Max Sugarman · Intelligent Transport Systems UK View ↗
26 Feb 2025 Andrew Summers · Transport East, Mr Ben Simm · Leicestershire County Council, Paul Miner · CPRE - The Countryside Charity, Professor Karen Lucas · University of Manchester, Robert Morton · Unite the Union, Silviya Barrett · Campaign for Better Transport, Simon Mathieson · First bus, Stephen Frost · Institute of Public Policy Research View ↗