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The Parliamentary Under-Secretary of State for Transport (Andrew Jones)
It is a pleasure to serve under your chairmanship, Mr Nuttall. I congratulate my hon. Friend the Member for Erewash (Maggie Throup) on securing this debate on the important subject of community transport. The community transport sector has for many years stepped in and provided services where traditional public transport services have not been available or not been suitable for passengers. These vital, lifeline services enable people to live independently, participate in their community and access education, employment, health and a range of other services. The key point is that they are always provided for a social purpose and community benefit, not for profit. The range of services provided includes voluntary car services, community bus services, dial-a-ride and wheels to work, making use of every type of vehicle from mopeds to minibuses. Community transport is responsive, accessible, flexible and local. Services are often run by volunteers, who help communities merely out of social kindness without expecting anything for themselves, on which they must be congratulated.
We have heard from Members some great examples of local services, and we have heard how well valued they are and how significant their impact is. There is real scale to the sector: tens of thousands of volunteers deliver millions of passenger journeys. The House might be interested to know that the Community Transport Association has done some analysis of who its customers are. It found that 98% of those who use community transport are older people, and 85% of passengers are people with disabilities or restricted mobility. The figures showed that 78% of community transport services take people to social outings, 73% carry out health-related trips and 64% take people to day centres. The CTA found that 31% of community travel services are provided in mostly rural areas and a further 21% in exclusively rural areas. It is helpful to quantify the points that hon. Members have made, because of the scale and importance of the service. It deals with some of the more vulnerable people in our community, and the social element, which hon. Members from Scotland particularly emphasised, is most important.
We have heard from hon. Members about services such as Bakewell and Eyam Community Transport in Derbyshire. Such services help to sustain and develop local economies and social integration, and we can see the real value of the organisations that run them. Evidently, so can the people of Derbyshire; I understand that a recent petition opposing the possible withdrawal of funding by the county council received strong support from local residents.
The Government recognise the importance of the sector, as we do the importance of all types of bus services. We recognise that buses are of enormous social and economic importance. They are at the heart of a modern transport system. The number of bus passenger journeys in our country is 5.7 billion a year, compared with 1.65 billion journeys on our railways. Bus services do the heavy lifting in our public transport system. That is why we have supported them and will continue to do so. The Government protected the bus service operators grant in the spending review to ensure that vital bus services continue to run.
We have created a £25 million fund for the purchase of new minibuses by community transport operators, so that they may continue to run those vital services. We have started delivering those to organisations, and the number will steadily increase over the next few months. The hon. Member for Bermondsey and Old Southwark (Neil Coyle) asked about the Lewisham and Southwark Age UK minibus. Let me provide a bit more information for colleagues. Each vehicle is being individually built to meet each organisation’s needs. The number of successful organisations was actually 310, not 400. When officials from the Department for Transport liaised with community bodies around the country, they found fairly clear consistency in the types of vehicles that those organisations sought. We therefore bunched them into different groups—we had perhaps 25 organisations seeking a 16-seat minibus with a lift, for instance—and those groups are now being dealt with under the procurement framework. The procurement portal has been launched. It is important that we deliver the procurement through a portal, because it will result in better value for taxpayers. The pace is picking up—some vehicles are out there already, and some grants are being made to individual bodies locally. The scheme is an important and popular one, which has my personal attention to ensure that it happens as quickly as possible. That is a quick update, and I will keep the hon. Gentleman informed about progress on the order for his constituents.
I recognise that the sector is working in challenging times, with changes to local authority funding and reform of the bus market. The Government are committed to balancing our country’s finances and reducing the deficit, and I recognise that many local authorities are facing reductions in budgets and difficult decisions about where to spend their money. That is not easy for local councils. However, I gently remind Labour Members that they too stood on a manifesto platform of cuts in budgets, with Health, Education and International Development being the only Departments that would be protected. They should not pretend that they have no mandate on this, because they stood on a manifesto of some cuts and, of course, we all know that it was the Labour party that crashed the economy in the first place.
I cannot comment on decisions made by Derbyshire County Council, but I encourage local authorities to think innovatively about the decisions that they take on public transport funding. Transport is vital to keep the country moving and to continue the economic recovery. Connecting people is a key Government transport objective, and we all understand the social, economic and environmental benefits of effective transport systems. That is why we have provided £196.5 million to the D2N2 local enterprise partnership, provided Derby City Council with £4.9 million for better ways to work as part of the local sustainable transport fund, and given £2.95 million to Derbyshire County Council to repair its local roads.
Many colleagues spoke about access to healthcare. Whether they are visiting a GP or a hospital, people need to make essential journeys and they rely on transport to get them there. A scheme in the Department that is of real interest is the Total Transport pilots. We believe that Total Transport can help. The idea is to integrate transport services that are currently commissioned by different central and local government agencies and provided by different operators. Such integration may deliver improved passenger transport, particularly in isolated communities, by ensuring that existing resources are allocated more efficiently. That might entail, for example, combining conventional bus services or dial-a-ride with hospital transport. The objective is to meet individual transport needs; it is not about what is written on the side of the vehicle.
Some £2 billion of public funding for transport services is provided each year by a number of agencies, in addition to £1 billion for concessionary passes. To break that down, £350 million is provided for local authority support of socially necessary bus services, £1 billion for home-to-school transport provided by local authorities, and at least £150 million for non-emergency patient transport provided by the NHS to individual local clinical commissioning groups. However, that funding is not generally co-ordinated or integrated at a local level, which sometimes results in duplication and wastage of public money—wastage that we can ill afford.
That is why, in April, the Government allocated £7.6 million to 37 schemes run by local authorities to pilot Total Transport solutions in their areas. The pilot schemes will run for a maximum of two years. That is a small amount of money, but a very big idea. It is about integrating services. It has the capacity to make a real difference in meeting the transport needs of every community.
Nigel Mills
Would the Minister care to comment on whether community transport providers can access concessionary fare money? I believe that those who run a for-profit service that is open to everybody can access that scheme, but those who run a targeted community transport scheme cannot get the refund on some of the fares. That seems a bit unfair.
Andrew Jones
What my hon. Friend says is correct. There are different types of schemes under different types of permits, which may therefore attract different levels of fares. I will look into the matter and respond more fully to him.
Let me mention buses, which Members have highlighted. As everybody knows, the Government are committed to devolution. Bus services are inherently local and must take full account of local circumstances and needs. It is right that areas that have ambitious plans to grow and develop their bus markets should be given the powers they need to achieve their aims. We have signed groundbreaking deals with several local authorities, in which we have committed to providing them with powers to franchise their bus services. Franchising continues to form a core part of ongoing devolution deal conversations. Our devolution plans go beyond Manchester, Cornwall and Sheffield; if other areas want to come forward with attractive devolution deals that include bus franchising, they will be considered.
The future of bus services in each area will depend on how well local authorities, LEPs and operators adapt to local conditions. Not every place will adopt the same bus strategy, nor should they. It is about what works best for each area. That could be partnerships, franchising or, where bus services are working well, the status quo. What matters is that local authorities, bus operators and LEPs sort out what will be best for them locally and get on with it. In all that, the aim is to grow the bus market. I am a great fan of buses, and they are a key part of our transport mix. The buses Bill will present us with the opportunity to give local areas powers to make things even better.
As I have described, the Department provides several pots of funding to help provide strong transport and social connections in our communities. It is true that reductions in funding to local authorities have been tough. I was a cabinet member in a local authority for five years, with responsibility for its finances, so I know that these are difficult, big decisions, but the funding has been set at a sufficient level to deliver effective services.
It is up to Derbyshire County Council where to prioritise its funds and whether it ought to be making cuts to community transport. It has significant reserves—I understand that they could be up to £200 million—and it will have to consider what to do. It is the council’s decision, and as hon. Members have said, it is not easy, but the key priority must be to focus the money on where it will make a difference. Community transport really makes a difference, as everybody knows and has been so clear about. I am sure that the council is watching the debate and will listen to hon. Members.
I look to community transport operators to be part of the changing public transport picture and to work closely with their local authorities, and I look to all parties to consider how they might best contribute to providing services.
Ian Blackford
Will the Minister address the comments that my hon. Friend the Member for Caithness, Sutherland and Easter Ross (Dr Monaghan) and I made about VAT exemption for community transport vehicles?
Andrew Jones
I was just about to come to some of the points made by the hon. Members for Ross, Skye and Lochaber (Ian Blackford) and for Caithness, Sutherland and Easter Ross. VAT exemptions are obviously a Treasury matter. I will take that up with the Treasury and write back to the hon. Gentleman.
The contribution of the hon. Member for Caithness, Sutherland and Easter Ross was powerful, particularly as it highlighted the social experience of journeys and how big some of those journeys are in his part of the world. It is a fantastic part of the United Kingdom, but the journey distances are unrecognisable to other areas. Low population density areas face greater challenges with transport.
The hon. Gentleman mentioned the infraction case. That is an ongoing case, and as it is not resolved it would not be appropriate for me to comment on it. I assure the House that we will continue to work closely with colleagues in Scotland and Northern Ireland as the case progresses.
I confirm that the Government recognise the importance of community transport. It is clear that that view is held right across the House, and that there are no political divisions at all on the matter. I will work to ensure that community transport has an even stronger future.