Source · Select Committees · Transport Committee
Recommendation 15
15
Accepted in Part
The Government must consult on Bus Services Operators Grant reform now and proceed as quickly...
Recommendation
The Government must consult on Bus Services Operators Grant reform now and proceed as quickly as is feasible to introduce a new funding formula which incentivises operators to transition to zero-emission buses. (Paragraph 110) Conclusion
Government Response Summary
The government has introduced a 22p per km rate for ZEBs through BSOG and is working on proposals for a consultation on reforming the Bus Service Operator Grant (BSOG) to modernize and future-proof the grant; the consultation will include a proposal on changes to the payment metric and explore mechanisms to support ZEB uptake but it cannot confirm the exact content of the reformed BSOG until the evidence gathered through responses to the consultation has been analysed.
Government Response
Accepted in Part
HM Government
Accepted in Part
The Government partially accepts this recommendation. The Government has already taken steps to incentivise the uptake of ZEBs through BSOG. From April 2022, Government introduced a 22p per km rate at which the Bus Service Operators Grant can be claimed for ZEBs. We are working on proposals for a consultation on reforming the Bus Service Operator Grant (BSOG), as committed to in the National Bus Strategy. We will publish the consultation later this year, seeking views from bus operators and local authorities that claim BSOG funding on a number of measures to modernise and future-proof the grant. A modernised BSOG will need to balance departmental priorities to ensure it can be as effective as possible in supporting the bus sector. The role of BSOG in delivering these aims will depend on the overall funding made available for the sector through both capital and revenue support. We cannot confirm the exact content of the reformed BSOG until we have analysed evidence gathered through responses to the consultation. The consultation will include a proposal on changes to the payment metric by which funding for bus operators is calculated. Through the consultation we will explore mechanisms by which BSOG could support ZEB uptake and use, which may include a separate rate for zero-emission buses.