Recommendation 2

HM Government · verbatim extract Deferred

The Government recognises the committee’s ambition and vision, and notes that there are potential benefits for passengers of a standardised approach to public transport service levels. We want to see a better standard of public transport connectivity right across England by the end of this Parliament and, with respect to bus services, believe this can be achieved through reformed, longer term funding allocations and measures introduced through our Bus Services (No.2) Bill. It is important to note, however, that across England there are significant differences in demographics, need and geography which make minimum levels of service very challenging to implement at a national level, whilst also ensuring value for money. We believe that these factors would make implementing a minimum level of service more difficult in some areas compared to the examples that the Committee has considered, such as Ireland. The Government is also clear that we want to give power back to local communities and continue to believe that local decisions over bus services, alongside a fair and simple funding formula, are most likely to deliver the best outcomes for passengers, whilst effectively balancing value for money. As set out in the Fair Funding Review 2.0 and the English Devolution White Paper, the Government is committed to simplifying the local government grant funding landscape to enable local authorities and strategic authorities to plan more effectively. As part of this, we are currently working to consolidate numerous funding streams into a smaller set of budgets, providing greater flexibility and control to local authorities. In addition, five further Established Mayoral Strategic Authorities (MSAs) (Greater London Authority, Liverpool City Region, the North East, South Yorkshire, and West Yorkshire Combined Authorities) will receive an Integrated Settlement from 2026/27, building on from the Greater Manchester and West Midlands Combined Authorities Settlements in 2025/26. Integrated Settlements consolidate funding across multiple policy areas and departments, including bus funding, into a single and flexible pot to support MSAs to deliver growth. We are also currently engaging with sector representatives on measures to ensure bus funding is allocated fairly, using a long-term allocation formula. We will also work with local authority representative groups to consider whether there are long-term options to raise service levels across the country, alongside any actions we could take now, such as improved guidance to local transport authorities (LTAs).