Recommendation 7

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 from fossil fuels, a grant based on fuel use risks becoming increasingly misaligned with long- term policy goals. The previous National Bus Strategy recognised this and set out an ambition to reform the Bus Service Operators Grant to better support decarbonisation goals. (Conclusion, Paragraph 39)