The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)
My Lords, first, I thank the noble Baroness, Lady Randerson, and congratulate her on securing this debate, as have other noble Lords, and thank all noble Lords for their contribution on this important mode of transport. I also thank the noble Lord, Lord Snape, for outlining the experience of West Midlands in particular. It would be fair to say that I am very keen, as is the Secretary of State and the department, to see innovative ways in which schemes work, not just in London but beyond. If the noble Lord were to accompany me, I should be delighted, but I look forward to visiting that route and not just hearing about it but experiencing how things are working in the West Midlands.
If I may digress for a moment, I was somewhat perturbed by not just one but two mentions of a possible reshuffle. The noble Lord clearly has his ear closer to the ground than I have; perhaps we should talk outside the Chamber.
Lord Snape
In view of the Minister’s invitation for me to accompany him, I assure him that I will put a good word in with the Prime Minister for him.
Lord Ahmad of Wimbledon
I thank the noble Lord for his support; I serve, of course, at the Prime Minister’s pleasure.
Returning to the important issue before us, I assure all noble Lords that the Government recognise the importance of buses and the role of public transport more generally for both the sustainability and the independence of communities. Let me say from the outset that we understand the importance of affordable, accessible transport for constituents across England and beyond in Wales and Scotland, through devolved Administrations. We recognise the extra pressures placed on local authorities throughout the country to provide services—particularly, as we heard from the noble Lord, Lord Greaves, in more isolated, rural and remote areas.
Transport is not just about levels of public funding, it is about how and where that funding is used. The Government believe that local authorities are best placed to decide what support to provide in response to the needs of their local communities. For example, where commercial operations are not feasible, local authorities have a vital role in supporting bus services. Indeed, around one-fifth of bus mileage in predominately rural authorities is operated under contract to them. That is why the Government devolved £40 million of the £250 million paid in the BSOG bus subsidy to councils outside London last year to support bus services in England, so they can decide for themselves how it is spent. But it is vital that those authorities maximise the return on every penny of the funding they provide. While there is a lot of innovation and hard work done by councils across the country, there is scope to look into more innovative ways.
I congratulate the noble Lord, Lord Greaves, on his re-election and his journey for all of us to the hill town of Colne. The route 95 is now very much part of the Hansard record. He also highlighted the importance of using other available sources of funding, such as Section 106 money to ensure that important routes are retained.
On the issue of public funding more generally, at present £2 billion per annum of public funding for transport services is provided by a number of agencies. For example, there is the bus service operators grant, or BSOG, of £250 million currently, paid by the DfT to bus operators, local authorities and community transport organisations on the basis of fuel burnt. Then there is the local bus services support of £317 million per annum, provided by the DCLG for local authority support of socially necessary bus services. There is home-to-school transport of £1 billion per annum, also provided to local authorities by the DCLG, and the non-emergency patient transport of £150 million per annum, provided by the NHS to individual local clinical commissioning groups.
Baroness Randerson
Would the Minister accept therefore that the statistics that he has given provide a compelling case for a connectivity fund, which involves getting together across government to ensure that that money is used as effectively as possible?
Lord Ahmad of Wimbledon
The noble Baroness may have had sight of my speech in that regard. That is exactly why the Government have launched £7.6 million for the total transport pilot scheme across England, to explore how councils, the NHS and other agencies can work together to commission transport services more effectively, not just to reduce costs but to improve services and avoid duplication of specific commissioned services. Noble Lords may be aware that there are 37 pilot schemes currently halfway through their two-year run, and it is heartening to hear of the enthusiasm with which the participating authorities have taken up that initiative.
I turn to a few of the other sources of transport provision. Community transport in rural areas also requires effective use of all available options, whether it be traditional fixed-route bus services, community buses, dial-a-ride or other types of demand-responsive transport such as taxis. I fully appreciate the role played by community transport operators, which is vital in linking individuals and communities to existing transport networks, work, education, shops and services. With approximately 8 million passenger trips taking place in rural areas, their services both encourage growth and, importantly, reduce isolation. In recognition of the important role that they play, the Government launched a £25 million community minibus fund to help to buy new vehicles for local community transport organisations, with a strong focus on rural areas. This funding will help elderly residents, people with learning and physical disabilities and those who do not have access to a commercial bus service. The noble Baroness raised that concern. I am delighted to say that more than 300 local charities and community groups across England will receive new minibuses through the fund. To date, over £1.3 million of grant funding has been paid to organisations for them to buy their vehicles. I am pleased with the outcome of this fund so far, but we are keen to explore further ways to continue to support the sector.
Noble Lords also, rightly, raised the issue of concessionary travel. The Government are fully aware of the importance of affordable, accessible transport, particularly for older and disabled people. Therefore, I assure the noble Lord, Lord Greaves, that that is why the Government are committed to protecting the national bus travel concession in England, spending over £900 million a year doing so. I know there have been calls for the scheme to be amended in order to mitigate costs. However, the bus pass provides much-needed help for around 10 million of the most vulnerable people in society by providing them with greater freedom and independence and is often a lifeline to their local community. It also brings benefits to the wider economy.
All noble Lords raised the buses Bill. I remember answering a Question about buses in which the buses Bill came up. At that time, I said “watch this space”. All I will say to noble Lords is: watch this space for a shorter period now. I am sure it is just over the horizon. Local decision-making is key, and the Government are committed to devolution and the decentralisation of decision-making. I am therefore pleased to announce that we are currently preparing to introduce our bus services Bill during the next parliamentary Session. The prime focus of the Bill is delivering powers to local authorities for them to make decisions over their local bus services in line with local priorities.
The noble Lord, Lord Rosser, asked about specific provisions. The Bill will be published, and we will have discussions about it. It will introduce new franchising powers and contain stronger arrangements to allow local government to work in partnership with bus operators and local stakeholders. We believe that it will allow bus services to meet the challenges of the 21st century, as the noble Baroness said. We are committed to legislating to provide powers for local authorities to franchise their bus network, subject to agreement from government, but we want to develop a package of measures to ensure that local authorities which do not wish to pursue franchising have the tools to improve their local services.
The noble Lord, Lord Rosser, spoke about smart ticketing outside London. I understand that 93% of all bus journeys outside London are made on vehicles that can accept smart tickets. He made an important point about new rolling stock across the board, which is a valid issue to raise. I raised it in preparation not only for this debate but for the imminent buses Bill. The rolling stock that is made available must be appropriate for use on all networks and must reflect the needs of the 21st century for ticketing, announcements and visual aids, which were mentioned by other noble Lords. They are important contributions to improve the use of buses, their accessibility and smart ticketing.
The environment was rightly raised. Where cleaner, greener buses have operated, we have all recognised the benefits. The technology is still evolving, but I welcome the advances already made, particularly for the future provision of environmentally friendly public transport. The Government are committed to improving the environmental performance of buses. Building on the success of the £88 million green bus fund under the previous coalition Government, the Government are providing £30 million of funding for low-emission buses from 2016. The emissions and air-quality eligibility thresholds of this scheme are even more demanding than those for previous green bus fund rounds. We are also encouraging the take-up of low-carbon buses by paying 6p for every kilometre operated by those buses through the bus service operators grant.
We had some valuable contributions based on a range of experiences. During the passage of the buses Bill in the next Session, I look forward to discussing with noble Lords the importance of improving bus services across our country, but I recognise that there is no single solution that will work everywhere. However, I am confident that our commitment to local transport, as demonstrated by some of the initiatives I have outlined, will continue to encourage local authorities, operators and communities to work in partnership to decide how best to provide access to services for residents.
Transport for London was mentioned. I am sure we acknowledge the efforts made by the previous mayor to improve bus services and all modes of transport in London. I congratulate the new Mayor of London on his successful election. I have already been in discussion with him to see how we can work together for the benefit of Londoners, which is an important part of government and the mayoralty in London. If other mayors come into place under the devolution agenda, central government can work well with them and local authorities to ensure that we provide the best access to services for residents.
I hope I have been able to demonstrate that this Government are committed to maintaining and improving local public transport in all areas. I thank all noble Lords for their contributions to ensuring that we have bus services and networks that work well not only in our cites but for rural villages throughout our country.