Select Committee · Public Accounts Committee

Local bus services in England

Status: Open Opened: 6 May 2025 16 recommendations 13 conclusions 1 report

Local bus services are the most used form of public transport. The Department for Transport published its national bus strategy for England, Bus Back Better , in 2021. Government strategy has sought to make buses more frequent, reliable, better coordinated and cheaper, alongside supporting post-pandemic recovery. While bus services are mostly run on a commercial …

Reports

1 report
Title HC No. Published Items Response
50th Report - Local bus services in England HC 892 29 Oct 2025 29 Responded

Recommendations & Conclusions

29 items
2 Conclusion 50th Report - Local bus services in Eng… Accepted

Update committee on progress towards consolidated, long-term bus sector funding, ensuring rural spending

The Department’s funding for buses has been short-term, fragmented and poorly targeted, hindering effective investment in the sector. Over the period 2019–20 to 2024–25, the Department provided funding to the bus sector via 13 different grant schemes. Most of these were short-term allocations, which has hindered local transport authorities’ ability …

Government response. The government has consolidated bus funding into the Local Authority Bus Grant (LABG) from 2025-26, announced allocations until 2029-30, and introduced a rural metric. Funding letters will set expectations for spending on bus schemes to prevent clawback or reduction.
HM Treasury
3 Conclusion 50th Report - Local bus services in Eng… Accepted

Finalise bus service performance measures and develop evaluation plan for interventions

The Department does not know how it will measure local transport authorities’ performance on bus services. Bus service performance varies significantly across the country, yet the Department does not have the data it needs to identify under-performing areas and help them improve. Such measures might include reliability, affordability, frequency or …

Government response. The government is reviewing its monitoring and evaluation plan for bus interventions, with several evaluations completing in 2026 and 2027. It will develop an enhanced role for Transport Focus to monitor bus service performance using a consistent outcomes framework to …
HM Treasury
4 Conclusion 50th Report - Local bus services in Eng… Accepted

Support local authorities to understand bus operating models, learning from franchising pilots

The Department has not yet provided local transport authorities with the information they need to understand the relative merits of different bus operating models, including franchising. Franchising (whereby local transport authorities take on more responsibility for bus services and award contracts to private operators) gives local transport authorities more control …

Government response. The government is supporting local transport authorities (LTAs) by providing guidance, including a handbook on regulatory models published in November 2025, and offering funding and active support for those exploring franchising. It plans to publish updated guidance and an Enhanced …
HM Treasury
5 Conclusion 50th Report - Local bus services in Eng… Accepted

Explain targeted skills support and share best practices via Bus Centre of Excellence

The Department could do much more to support local transport authorities with the skills they need and to help them apply relevant good practice. Local transport authorities’ capacity and capability to deliver bus service improvements is not good enough. In 2023, 46% of local authorities rated their capacity as poor. …

Government response. The government plans to significantly expand the role of the Bus Centre of Excellence (BCoE) with increased funding and enhance Transport Focus's role to monitor bus service performance. It will use a survey of LTAs and outcomes data to target …
HM Treasury
6 Conclusion 50th Report - Local bus services in Eng… Accepted

Detail barriers for elderly and disabled bus users, promoting concessionary pass uptake

The Department does not understand why elderly and disabled people are using buses far less than they used to. The Department could not adequately explain to us why elderly and disabled people have not returned to buses to the same extent as other passengers since the pandemic. The number of …

Government response. The government committed to working with local transport authorities (LTAs) to promote the English National Concessionary Travel Scheme (ENCTS) and ensure accessible application processes. It will embed promotional expectations in guidance and funding conditions, and intends to request evidence from …
HM Treasury
7 Conclusion 50th Report - Local bus services in Eng… Accepted

Explain how local authorities are implementing bus passenger improvements through technology

Bus passenger experience is variable across the country in part due to patchy implementation of technology. The Department’s open data system should enable bus passengers to access real-time information for any bus in England, but this does not match bus users’ experience. Only 16% of respondents to a recent bus …

Government response. The government is funding technological improvements through Bus Service Improvement Plans and supporting the implementation of a national, contactless smart ticketing solution outside London. It is also helping local transport authorities use data via the Analyse Bus Open Data Service …
HM Treasury
1 Conclusion 50th Report - Local bus services in Eng… Accepted

Report examines local bus services in England, excluding London

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Transport (the Department) on local bus services in England outside London.1 This report excludes bus services in London, which has for many years had a different delivery and funding model from …

Government response. The government will set out its approach to bus services in England outside London and the overall outcomes it seeks to achieve by the end of the current Parliament in the next few months. It will monitor outcomes at the …
HM Treasury
8 Conclusion 50th Report - Local bus services in Eng… Deferred

Rural bus service recovery remains challenging, requiring LTA-led improvements

We asked the Department what action it is taking to support rural areas which have seen significant cuts to bus services and poor performance, leaving would-be passengers stranded.13 The Department acknowledged that the recovery in bus usage was particularly challenging in rural areas. It told us it was up to …

Government response. The government's response discusses animal vaccine availability, research, and future plans, including an action plan by late 2026, completely unrelated to the recommendation on rural bus services.
HM Treasury
9 Conclusion 50th Report - Local bus services in Eng… Deferred

UK bus services perform poorly, demonstrating inadequate connectivity and significant economic costs.

Bus services in the UK perform poorly compared to those in other European countries. Fewer people can reach local city centres within 30 minutes than the European average. This poor connectivity costs the UK economy more than £23 billion per year according to Centre for Cities.16 We questioned the Department …

Government response. The government's response discusses sanitary and phytosanitary agreements with the EU and strengthening resilience to animal disease, completely unrelated to the recommendation on UK bus connectivity compared to Europe.
HM Treasury
10 Recommendation 50th Report - Local bus services in Eng… Accepted

Department's vision for bus services remains vague regarding specific improvements and timelines.

We asked the Department what good performance looks like and when bus services will get there. The Department told us that the bill it is, at time of writing, sponsoring through Parliament sets out a clear vision for the bus sector and that it wants a better-connected, more accessible, reliable, …

Government response. The government agreed to set out how it will clearly communicate its vision for bus services, including setting out what outcomes it wants to achieve and by when, with a target implementation date of April 2026, and intends to publish …
HM Treasury
11 Recommendation 50th Report - Local bus services in Eng… Accepted

Fragmented short-term bus grant schemes hinder effective investment by operators and authorities.

Over the period 2019–20 to 2024–25, the Department provided £5.9 billion of funding to the bus sector via 13 different grant schemes. Most of these were short term, which hindered effective investment in the sector by bus operators and local transport authorities.21 We asked the Department why it had administered …

Government response. The government will consolidate bus funding through the Local Authority Bus Grant (LABG), which combines Bus Service Improvement Plan (BSIP) funding and the Local Authority Bus Service Operators’ Grant (LA BSOG). Funding letters will set an expectation that the funding …
HM Treasury
12 Recommendation 50th Report - Local bus services in Eng… Accepted

Bus funding reform proceeding slowly for 12 years, with further delays anticipated.

We are concerned about the slow pace of reform to date.24 The Department has been attempting to reform its main bus grant to operators for 12 years.25 The Department told us it had been overtaken by events and had wanted to avoid any sudden changes in funding that would have …

Government response. The government agreed to update the committee on its progress towards providing longer-term, consolidated funding to the bus sector and explain when it will be able to detail its plans more fully, including how it will reflect the additional challenges …
HM Treasury
13 Recommendation 50th Report - Local bus services in Eng… Accepted

Competitive bus grant allocation leads to unequal funding, failing to consider rurality.

The Department’s decision to allocate some grants competitively has meant funding per person varied significantly. On average, mayoral combined authorities received significantly more bus service improvement funding (£34 per person) than county councils (£19 per person).27 We asked the Department how it was going to make its funding fairer. The …

Government response. The government agreed to update the committee on its progress towards providing longer-term, consolidated funding to the bus sector and explain when it will be able to detail its plans more fully, including how it will reflect the additional challenges …
HM Treasury
14 Recommendation 50th Report - Local bus services in Eng… Accepted

Unring-fenced bus grants face risk of diversion from intended services by local authorities.

The financial pressures on local authorities are such that the Department cannot be sure its bus grants to local areas will be spent on bus services if they are not ring-fenced. We asked the Department how it plans to ensure that the funding it allocates to local transport authorities for …

Government response. The government agreed to update the committee on its progress towards providing longer-term, consolidated funding to the bus sector and explain when it will be able to detail its plans more fully, including how it will reflect the additional challenges …
HM Treasury
15 Recommendation 50th Report - Local bus services in Eng… Accepted

Department's inadequate monitoring hinders identification and support for under-performing bus service areas.

Local transport authorities achieve very different levels of bus service and the Department’s lack of monitoring means it cannot identify under-performing areas and help them improve.31 The Department does not have standard measures or defined outcomes for reliability, affordability, frequency or other factors passengers value. The data it does collect …

Government response. The government agreed to finalize a basket of measures and explain how it will use an outcomes framework to hold local transport authorities to account for their performance on bus services and support those performing less well by December 2026; …
HM Treasury
16 Recommendation 50th Report - Local bus services in Eng… Accepted

Department's evaluation programme lacks outcomes focus, providing poorly defined and unhelpful data.

The Department’s evaluation programme is focused on specific funding streams, rather than on the outcomes it wants to achieve. Its most recent attempt to collect data to understand the impact of its funding interventions was poorly defined and did not provide useful information.34 We asked the Department whether its grants …

Government response. The department already has a Monitoring and Evaluating (M&E) programme in place for buses and is reviewing and further developing the programme following the Bus Services Act 2025 and wider departmental changes.
HM Treasury
17 Conclusion 50th Report - Local bus services in Eng… Not Addressed

Bus franchising requires significant time and cost, considerably exceeding Departmental estimates.

The Department of Transport is encouraging more local transport authorities to consider franchising their bus services. Franchising, whereby local transport authorities take on more responsibility for bus services and award contracts to private operators, gives local transport authorities more control over bus services, for example, to decide routes and fares. …

Government response. This item is a conclusion but the response addresses the recommendation 4, as the conclusion is linked to the recommendation. The Department is committed to supporting local transport authorities to deliver better bus services and share learnings, including through the …
HM Treasury
18 Recommendation 50th Report - Local bus services in Eng… Accepted

Department remains complacent about significant financial risks of bus franchising for local authorities.

We were concerned the Department was being complacent about the significant level of financial risk for individual local transport authorities if they opt for franchising. The Department told us that some of the transition costs in Greater Manchester would have been spent anyway to keep supported services running. But the …

Government response. The government agreed to support local transport authorities in understanding the benefits and risks of different models for running bus services and optimize how they work, including learning from the pilots of franchising models, providing guidance based on its review …
HM Treasury
19 Conclusion 50th Report - Local bus services in Eng… Not Addressed

Local transport authorities lack capacity and capability for bus franchising models.

We asked the Department whether local transport authorities had sufficient information to know what the right delivery model is for their local area.42 The Department said its role is to help local authorities understand the options and acknowledged that many local areas do not currently have the capacity and capability …

Government response. This item is a conclusion but the response addresses the recommendation 4, as the conclusion is linked to the recommendation. The Department is committed to supporting local transport authorities to deliver better bus services and share learnings, including through the …
HM Treasury
20 Recommendation 50th Report - Local bus services in Eng… Accepted

Enhanced partnerships demonstrate mixed success in improving bus services in rural areas.

We asked the Department whether the only way to deliver benefits to passengers was to pursue franchising, with the associated transfer of risks from the private to the public sector. The Department clarified that local transport authorities must choose between franchising and enhanced partnerships.45 It cited some examples of success …

Government response. The Department is committed to supporting local transport authorities to deliver better bus services and share learnings, including through the Bus Centre of Excellence, shared guidance and advice, a handbook and toolkit, active support and funding to local transport authorities …
HM Treasury
21 Recommendation 50th Report - Local bus services in Eng… Accepted

Local transport authorities' capacity for delivering bus services remains under significant strain.

Local transport authorities have had to scale back their transport planning and delivery capacity to focus on statutory functions such as social care. Further devolution and moves to franchising will considerably increase pressure on their capacity and capability to deliver bus services, which is already under strain: 46% of local …

Government response. The government agreed to explain how it will make sure its support is targeted to the skills local transport authorities most need and identify and share, through the Bus Centre of Excellence, best practice that is tailored for areas with …
HM Treasury
22 Recommendation 50th Report - Local bus services in Eng… Accepted

Target Bus Centre of Excellence support to specific outcomes and most-needed skills.

The Department established the Bus Centre of Excellence in 2023 to support the capability needs of the bus sector, providing free training courses and seminars to share skills and good practice for local government and bus sector staff.52 While we welcome this initiative, our constituents’ ongoing experience of poor bus …

Government response. The department will enhance Transport Focus' role to monitor bus service performance and outcomes, using an outcomes framework to identify effective practices. It will significantly expand the role of the Bus Centre of Excellence (BCoE), and have already conducted a …
HM Treasury
23 Recommendation 50th Report - Local bus services in Eng… Accepted

Department lacks insightful analysis explaining disparities in bus service performance across areas.

The Department’s focus, in what it told us, was on the best-performing local transport authorities around the country. This was at odds with experience in our constituencies, sometimes even in neighbouring counties.54 We questioned why there was such disparity in bus service performance in areas with otherwise similar characteristics. The …

Government response. The government agreed to explain how it will make sure its support is targeted to the skills local transport authorities most need and identify and share, through the Bus Centre of Excellence, best practice that is tailored for areas with …
HM Treasury
24 Conclusion 50th Report - Local bus services in Eng… Acknowledged

Reduced bus usage by older and disabled people is not assured as genuine choice.

Older and disabled people are taking far fewer bus journeys than other passengers relative to pre-COVID bus usage; the number of concessionary journeys by older and disabled passengers is 29% lower than before COVID. The Department explained that fare paying passenger journeys are nearly at pre-COVID levels. However, because concessionary …

Government response. The response outlines potential factors contributing to the decrease in concessionary journeys, including discretionary travel, cost of living, and a shift to online activities. They will provide a further update to the committee within six months.
HM Treasury
25 Recommendation 50th Report - Local bus services in Eng… Accepted

Disabled people face persistent barriers to bus use due to inaccessible information and infrastructure.

Disabled people face persistent barriers to bus use, including lack of accessible travel information at bus stops and on-board, inaccessible ticketing systems and bus doors, as set out in evidence submitted by Transformative Transport Service Design Initiative.59 Further evidence from Later Life Ambitions explains how cuts to bus services have …

Government response. The department will write to the Committee with a further update on its understanding of the barriers preventing concessionary travel within six months, and details of its plans to address them.
HM Treasury
26 Recommendation 50th Report - Local bus services in Eng… Accepted

Department acknowledges poorer bus experience for disabled people, with accessibility measures underway.

The Department acknowledged that disabled people have a poorer experience on buses and that it needs to do more. It told us about its various measures to help improve accessibility, such as supporting operators to implement improvements to audible and visible route and destination announcements.62 We raised the issue of …

Government response. The government agreed to write to the committee within six months setting out the specific barriers preventing elderly and disabled passengers getting back on buses and its plans to address them, with a target implementation date of April 2026.
HM Treasury
27 Recommendation 50th Report - Local bus services in Eng… Accepted

Roll-out of real-time bus information faces challenges despite open data compliance.

Technology could vastly improve bus passengers’ experience on England’s buses. For example, providing live updates on when a bus will next be stopping would reduce uncertainty and help passengers plan their journeys.65 We asked the Department what it is doing to 58 Qq 9-10, 12, 73 59 Transformative Transport Service …

Government response. The department will write to the committee within six months explaining how it is helping all local transport authorities implement improvements for bus passengers through better use of technology, and is committed to supporting local transport authorities in implementing technological …
HM Treasury
28 Recommendation 50th Report - Local bus services in Eng… Accepted

Technological improvements like bus prioritisation and integrated ticketing enhance the bus passenger experience.

Other technological improvements which local areas have made include bus prioritisation and ticketing. Nottingham and Derbyshire are using interactive signalling to prioritise buses at busy junctions.69 Speeding up bus journeys can also be achieved by simplifying ticketing. The Department told us that it is working with Greater Manchester and West …

Government response. The government agreed to write to the committee within six months explaining how it is helping all local transport authorities implement improvements for bus passengers through better use of technology, with a target implementation date of April 2026, including supporting …
HM Treasury
29 Conclusion 50th Report - Local bus services in Eng…

Digital exclusion poses challenges for demand-responsive transport uptake and cost-effectiveness.

One digitally enabled service the Department has been supporting in 17 rural areas is demand-responsive transport, where smaller buses or taxis provide a link from rural areas into local towns. Passengers use an app to request journey times in advance.72 Demand responsive transport can provide a minimum level of transport …

HM Treasury

Oral evidence sessions

1 session
Date Witnesses
17 Jul 2025 Conrad Bailey · Department for Transport, Jo Shanmugalingam · Department for Transport, Stephen Fidler · Department for Transport View ↗

Correspondence

2 letters
DateDirectionTitle
14 May 2026 To cttee Letter from the Permanent Secretary at the Department for Transport relating to…
4 Sep 2025 To cttee Letter from the Permanent Secretary of the Department for Transport relating to…