Source · National Audit Office

Local bus services in England

A new NAO report examines if the Department for Transport has delivered value for money from its support to local bus services outside of London.

Published: 27 Jun 2025 Recommendations: 7 Type: Value for Money NAO confirmed: 7 Department: Department for Transport
Dept: Department for Transport Topics: Driving and road transportLocal economyLocal governmentLocal services and housingTransport nao.org.uk →

Recommendations

7 items
7 accepted 3 implemented 4 in progress

Recommendation 1

Addressee: Department for Transport · Source location: Page 12, 22a

DfT should clearly and consistently communicate what its long-term strategic ambitions for bus services and associated plans are, so that the sector can organise itself to deliver these

Response position: Accepted

Delivery: Implemented · Q1 2026-27 · Confirmed by NAO

Recommendation 2

Addressee: Department for Transport · Source location: Page 12, 22b

DfT should ensure that roles, responsibilities and accountabilities within the sector are clearly articulated, understood and shared, including what DfT?s role is as custodian of the national bus services system, and under what circumstances and how it might intervene where under-performance emerges

Response position: Accepted

Delivery: In progress · Q3 2026-27 · Confirmed by NAO

Recommendation 3

Addressee: Department for Transport · Source location: Page 12, 22c

DfT should agree with, and communicate to, relevant stakeholders what range of information it needs to best monitor the bus services system and act to fulfil its role as custodian of that system, including information that will allow it to:
? assess local transport authority performance;
? identify leading indicators of emerging issues in the sector;
? inform how it targets and assesses the effectiveness of its funding;
? target interventions to achieve national outcomes; and
? improve the timelines of the data it collects

Response position: Accepted

Delivery: In progress · Q4 2026-27 · Confirmed by NAO

Recommendation 4

Addressee: Department for Transport · Source location: Page 12, 22d

DfT should develop its understanding of which capabilities local transport authorities will need, to better target the support they receive.

Response position: Accepted

Delivery: In progress · Q2 2026-27 · Confirmed by NAO

Recommendation 5

Addressee: Department for Transport · Source location: Page 12, 22e

DfT should identify further opportunities where it can support local transport authorities to deal with common issues and avoid duplication of effort by providing advice on standardised approaches or templates; DfT should look for this to include, for example, areas such as:
? support to various approaches to franchising;
? best practice for enhanced partnerships; and
? the procurement of zero emissions vehicles;

Response position: Accepted

Delivery: Implemented · Q2 2026-27 · Confirmed by NAO

Recommendation 6

Addressee: Department for Transport · Source location: Page 12, 22f

DfT should develop the Bus Centre of Excellence to support local transport authorities and bus operators in the activity that will help achieve the outcomes DfT wants; in doing so, DfT should consider how this could include areas such as:
? facilitating secondments within the sector, between bus operators and government;
? collating and sharing of best practice that is relevant to challenges faced by local transport authorities with different characteristics; and
? providing expert advice on areas relating to capital projects;

Response position: Accepted

Delivery: In progress · Q3 2026-27 · Confirmed by NAO

Recommendation 7

Addressee: Department for Transport · Source location: Page 12, 22g

DfT should consolidate funding grants for buses and establish the case, for discussion with HM Treasury, for providing long-term certainty to the sector on the funding available for bus services

Response position: Accepted

Delivery: Implemented · Q3 2025-26 · Confirmed by NAO

Public Accounts Committee follow-up

1 report

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.