Source · Select Committees · Transport Committee
Recommendation 7
7
Deferred
Current Bus Service Operators Grant disadvantages rural areas and conflicts with decarbonisation goals.
Conclusion
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)
Government Response Summary
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.
Government Response
Deferred
HM Government
Deferred
We agree with the Committee that there should be greater transparency around how bus services are maintained and operated, and the socially necessary local services measure in the Bus Services (No.2) Bill will support this. The Department will be producing guidance to help LTAs understand the new legislation around socially necessary services. This guidance will include information on the factors that LTAs should consider when conducting their assessment, as well as recommending methodologies that can be used in their decision making. While we believe there would be challenges in setting one standardised approach to this centrally, as the needs of different bus markets vary significantly by place, we expect LTAs to consider the needs of the whole community and be transparent about how they have reached decisions on which routes are designated as socially necessary. LTAs will also be expected to consult a range of stakeholders as part of the decision-making process.