Source · Select Committees · Transport Committee
Fourth Report - Implementation of the National Bus Strategy
Transport Committee
HC 161
Published 30 March 2023
Recommendations
5
Acknowledged
Para 57
The bidding process for BSIP funding has appeared slightly chaotic at times, with periods of...
Recommendation
The bidding process for BSIP funding has appeared slightly chaotic at times, with periods of delay, confusion about the terms of trade and concerns about Departmental capacity. While we understand the short-term impulse to prioritise communication with winning bidders, it …
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Government Response Summary
The Government acknowledged the importance of assisting unsuccessful bidders, and states it is working closely with LTAs and bus operators, with dedicated relationship managers appointed, to monitor and advise on BSIP outcomes through EPs, and help support governance processes.
Department for Transport
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6
Acknowledged
The Government should commission and publish an independent analysis of the first tranche of Bus...
Recommendation
The Government should commission and publish an independent analysis of the first tranche of Bus Service Improvement Plan funding. It should then consult on the structure and aims of a further disbursement of ‘transformation’ funding. Underpinning this should be a …
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Government Response Summary
The government has commissioned the Bus Transformation evaluation to understand which interventions improve bus services and assess the National Bus Strategy, with findings due in March 2025, and outlines existing funding commitments, but doesn't directly address consulting on further funding disbursement.
Department for Transport
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8
Accepted in Part
The Government made various commitments in the National Bus Strategy that we welcomed, as did...
Recommendation
The Government made various commitments in the National Bus Strategy that we welcomed, as did many in the bus sector. It said it would provide new guidance on socially and economically necessary services and on bus franchising. It also suggested …
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Government Response Summary
The Government plans to publish new guidance on SENS during this Parliament and will consider statutorily requiring the provision of socially and economically necessary bus services if objectives are not achieved by agreement; revised franchising guidance will be published as soon as possible, and a Call for Evidence will be published during this Parliament into whether local authorities should be allowed to set up new municipal bus companies.
Department for Transport
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13
Accepted in Part
Para 104
The Government should set out a clear, staged plan for the full transition to zero-...
Recommendation
The Government should set out a clear, staged plan for the full transition to zero- emission buses, in tandem with the delayed response to its consultation on ending the sale of non-zero-emission buses. This should include a clear long-term funding …
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Government Response Summary
The government will announce an end date for the sale of new non-zero emission buses and publish the consultation response; it will also set out the UK’s roadmap to achieving an entirely ZEB fleet, but it rejects further consideration of synthetic fuels for buses.
Department for Transport
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14
Accepted in Part
Para 109
Reforming the Bus Services Operators Grant will be complicated and may prove controversial, but it...
Recommendation
Reforming the Bus Services Operators Grant will be complicated and may prove controversial, but it is necessary. Successive Governments have accepted that, and promised to act, but little progress has been made. Further delay risks slowing the transition to zero-emission …
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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.
Department for Transport
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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.
Department for Transport
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17
Acknowledged
Para 116
The Government should set out clearly how it plans to evaluate the success of the...
Recommendation
The Government should set out clearly how it plans to evaluate the success of the National Bus Strategy across its various strands. It should also set out an indicative timescale for the scoping, consultation, and publication of future iterations of …
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Government Response Summary
The government notes the recommendation and describes multiple monitoring and evaluation projects currently being delivered for activities which sit under the National Bus Strategy, and will share learnings and interim findings where possible, with the Bus Transformation evaluation expected to be published in 2025.
Department for Transport
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18
Accepted
Away from the National Bus Strategy, the sector is in a tough spot.
Recommendation
Away from the National Bus Strategy, the sector is in a tough spot. Post-pandemic, many people’s lives have changed, and this has altered, perhaps permanently, when and where they wish to travel. Reduced patronage has left many services hanging by …
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Government Response Summary
The government states it continues to support the sector's recovery with over £2bn in emergency and recovery funding since the pandemic's start and is working on a long-term plan after the Bus Recovery Grant ends.
Department for Transport
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Conclusions (10)
1
Conclusion
Accepted
Para 32
The Bus Service Improvement Plan process has brought out the best in many local transport authorities and bus operators. We have been impressed by the ideas and innovation produced and the enthusiasm and commitment shown. We note the prevalence of bus priority plans as part of urban bids and demand-responsive …
Government Response Summary
The government highlights existing funding and programmes, including £160m additional funding through a Bus Service Improvement Plan plus (BSIP+) mechanism and £8.8 billion to transform local transport networks in city regions across England.
2
Conclusion
Acknowledged
Para 36
We welcome the funding for Bus Service Improvement Plans made available as part of the Government’s National Bus Strategy. It will do much good. Yet just over £1 billion is simply not enough money to produce real improvements in bus services across the country. Local areas were asked to be …
Government Response Summary
The government only partially accepts the recommendation, deferring to a future announcement on the end of sales date for non-zero emission buses and the publication of several strategies.
3
Conclusion
Accepted
Para 44
The publication of the National Bus Strategy was greeted with enthusiasm across the country, but this has dissipated in the many areas which received no funding to put their ambitious plans into action. Allowing roughly half the country to miss out risks entrenching, and in some cases creating, a two-tier …
Government Response Summary
The government has commissioned a Bus Transformation evaluation to understand which interventions improve bus services, assess the impact and effectiveness of BSIPs and wider bus investments, and identify best practices, with final findings due in March 2025.
4
Conclusion
Deferred
Para 50
We continue to be concerned about the capacity of smaller local transport authorities to compete on an even playing field with larger authorities in competitive bidding processes. We welcome the Government’s attempts to support less successful authorities, but this funding does not seem to have fixed the problem. If the …
Government Response Summary
The government cannot confirm the exact content of the reformed BSOG until they have analysed evidence gathered through responses to the consultation.
7
Conclusion
Acknowledged
Para 69
Bringing more coherence and collaboration between local transport authorities and bus operators to local bus services is undoubtedly a good idea. But Enhanced Partnerships are a largely untested way to do this. The Government has made a big bet on them being the right model. It must carefully monitor how …
Government Response Summary
The government acknowledges the importance of monitoring Enhanced Partnerships (EPs) and is working closely with LTAs and bus operators, highlighting the responsibilities and guidance provided to LTAs. The government also recognizes that EPs are new and untested mechanism and for that reason, sufficient time must be allowed for these to be fully embedded.
9
Conclusion
Accepted in Part
Para 87
We welcome the Government’s plans to phase out non-zero-emission buses. It will be expensive and, in the short-term at least, difficult on longer and more rural routes, but it is necessary. However, we note that decarbonising buses will only take the Government so far towards its objective. Wider transport decarbonisation …
Government Response Summary
The government partially accepts the recommendation, noting it consulted on an end date for non-zero emission buses in Spring 2022 and will shortly make an announcement, including the UK’s roadmap to achieving an entirely ZEB fleet but does not at present agree with government investment or consideration of synthetic fuels for buses.
10
Conclusion
Accepted in Part
Para 101
We support the Government’s ambition to have 4,000 new zero-emission buses on the road in the UK by the end of this Parliament and welcome the funding it has allocated to meet this aim. However, it seems increasingly unlikely it will meet its target, given how few of these vehicles …
Government Response Summary
The government will announce an end date for the sale of new non-zero emission buses and publish the consultation response; it will also set out the UK’s roadmap to achieving an entirely ZEB fleet, and outlines existing funding and schemes for ZEBs, but does not directly address incentivizing UK ZEB orders over overseas orders.
11
Conclusion
Accepted in Part
Para 102
If the Government is to meet its target it will need to intervene in the process more actively. We note that Scotland’s scheme in which operators bid for funding centrally, thereby cutting out the middleman, has allowed Scotland to power ahead with its 42 Implementation of the National Bus Strategy …
Government Response Summary
The government will announce an end date for the sale of new non-zero emission buses and publish the consultation response; it will also set out the UK’s roadmap to achieving an entirely ZEB fleet, and outlines existing funding and schemes for ZEBs, but does not directly address Scotland's scheme.
12
Conclusion
Accepted in Part
Para 103
We are not convinced by the Government’s argument that incentivising the purchase of a zero-emission buses will no longer be necessary once their lifetime cost decreases to that of comparable diesel buses. The up-front cost of ZEBs will remain higher, especially when the cost of upgrading and replacing infrastructure is …
Government Response Summary
The government will announce an end date for the sale of new non-zero emission buses, publish the consultation response, and set out the UK's roadmap to achieving an entirely ZEB fleet; they also highlight the funding already awarded for ZEBs. However, they did not specifically address the concern about upfront costs and infrastructure.
16
Conclusion
Acknowledged
Para 115
For too many years the story of buses in England outside London has been one of managed decline. The publication of the National Bus Strategy represented an opportunity to change that. It was ambitious, full of good ideas and supported by extra much-needed funding. So far, though, despite lots of …
Government Response Summary
The government welcomes the committee's view that the National Bus Strategy was ambitious and supported by funding, while recognizing the transformation promised has yet to be fully achieved and requiring continued focus.