Select committee: Public Accounts Committee
Recommendation 11
50th Report - Local bus services in England
Published 29 Oct 2025
Addressed to HM Treasury
Public Accounts Committee Local bus services in England All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
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 bus grants in such a fragmented manner. The Department acknowledged the issue, explaining that part of the complexity was due to emergency COVID funding and cost-of-living schemes and told us it has already taken some steps to simplify bus funding, for example by combining two grants to local transport authorities.22 The Department also told us that it intends to set out longer-term funding settlements for each local transport authority later this year.23
From: Public Accounts Committee, 50th Report - Local bus services in England (HC 892), 29 October 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Fiftieth Report of Session 2024-26
The government responded to the whole report on 4 June 2026 (deadline 29 December 2025).
Treasury minutes: Government response to the Committee of Public Accounts on the Fiftieth report from Session 2024-26
Published 19 January 2026.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it "agrees" with each of the Committee's recommendations, while saying it does not think it would be appropriate to set quantitative targets for national outcomes.
- On the vision for buses, the department intends to publish a summary of its vision and intended outcomes "in the next few months", but does not think quantitative national targets would be appropriate because they "would prejudge local choices and trade-offs".
- On funding, the Local Authority Bus Grant began consolidating funding in 2025-26; the Bus Services Fund is not ring-fenced, but funding letters will set an expectation that it is spent on eligible bus schemes, otherwise it "could be clawed back or reduced in future".
- On performance, the department gives a target implementation date of December 2026 for its outcomes framework and says it has been testing a basket of indicators with authorities through a 'Bus Indicator Pilot'.
- On concessionary travel, the department "will write to the Committee" within six months on barriers facing elderly and disabled passengers, with details of its plans to address them.