The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, I thank all noble Lords for their contributions today. I thank in particular the noble Lord, Lord Bradshaw, for securing this debate and allowing us to talk about buses and the hugely important role that they play in our transport system.
Buses connect our communities to the workplace and to vital public services such as healthcare and education. For many, particularly those in rural areas—which I think all noble Lords spoke about today—the bus is an absolute lifeline, as over half of those who rely on buses outside London do not have access to a car. They play a vital role in our economy, with some 4.5 billion journeys a year, and remain the most popular form of public transport, as the noble Baroness, Lady Randerson, highlighted.
Under-21s make up a third of bus passengers, and the use of buses by older people is increasing as a result of the national concessionary pass. As all noble Lords have highlighted today, the picture of bus usage across the country is mixed. While bus patronage has increased in some areas, other areas have seen a significant decline in passenger numbers.
The benefits of a reliable and innovative bus service are clear: greater productivity, and communities that are connected rather than apart. I agree with the noble Lord, Lord Bradshaw, and the noble Baroness, Lady Randerson, that heavy traffic makes buses less reliable, less prompt, more costly to run and more polluting—and obviously less attractive to use because of that. They operate along fixed routes and cannot use any alternatives. It is not really a good advertisement to use buses when you see one stuck in traffic.
What is the answer? The best answer is encouraging more people to use buses. It is still the best form of regular high-capacity transport that we have. Unlike rail, a bus can go virtually anywhere, and a bus service can be set up very quickly and at a fraction of the cost of rail. But buses need help to achieve this. One solution is to improve traffic in the key corridors used by buses, and one of the most effective ways is to give them priority over traffic. The sight of a bus cruising past lines of stationary cars or getting ahead of the queue at a junction is a much better advertisement and certainly sends a clear message to motorists. Priority measures offer good value for money, and we are funding many bus projects up and down the country through the Local Growth Fund. There are rapid transit schemes in Slough, Reading and Swindon and bus priority corridors in Manchester and Birmingham, which are genuinely innovative projects that are making a big difference in some of our busiest towns and cities. Busways, which provide dedicated corridors only to buses, such as in Cambridge and Luton, are also extremely effective and have the ridership to prove it.
The Government introduced the Bus Services Act 2017 to help local authorities and bus companies work together to make bus travel more attractive. Together they can identify congestion hotspots that disrupt bus journeys and, through partnership commitments, do something about them. Bus operators have to up their game by making using the bus an easier option. We discussed the secondary legislation relating to the Bus Services Act 2017 earlier this week. The Act contains a range of options to improve local bus services in England. In addition to franchising, there are new and improved options to allow local transport authorities to enter into partnership with their local bus operators to improve services for passengers.
Local authorities can provide bus priority measures or do other things to make buses more attractive. As the noble Lord, Lord Bradshaw, touched on, this can include reducing car-parking provision, increasing its cost or better enforcing existing parking restrictions, introducing park-and-ride schemes, altering traffic light phasing and establishing bus lanes. There are lots of tools. The Act also allows local bus operators to improve their services by introducing multi-operator smart ticketing, using more environmentally friendly vehicles and providing comprehensive timetable and fares information. The partnership can also co-ordinate bus timetables and ticketing with other modes, such as rail services, to provide a seamless journey.
The noble Lord, Lord Kennedy, mentioned the bus open data powers in the Act, which will go further than the partnership provisions to require all bus operators in England to open up real-time route, timetable, fare and ticket information to passengers by 2020. Since the Bus Services Act came into force last year, around 30 local authorities up and down the country have expressed an interest and we are working with them to roll out the scheme.
On the bus services operators grant—BSOG—which many noble Lords mentioned, commercial bus operators receive 43% of their income from the public purse. Each year the department provides £250 million in direct revenue support for bus services in England via the BSOG. Of that, more than £40 million is paid directly to councils outside London to support buses that are not commercially viable but which they consider socially necessary. The rest goes to commercial bus operators. Without this support, fares would increase and marginal services would disappear. The BSOG is currently paid on the basis of fuel used, but we are looking at ways of reforming it to make it even more effective in supporting bus services.
On local authority funding, I fully appreciate that local authorities are making very difficult choices as a result of ongoing financial pressures. The right reverend Prelate and others were correct to point out that BSOG funding was reduced in the 2010 spending review. A decision was made to reduce it by 20% to reflect the economic climate of the time. Since 2012 the Government have continued to maintain the BSOG at current levels and we are very aware of the importance of bus services to local communities. In recognition of this, we were able to protect BSOG funding as part of the 2015 spending review. We are looking at reforming the way the BSOG is paid to make it more effective in supporting bus services.
Noble Lords mentioned the advantages of more young people using buses, and I entirely agree. The level of fares is a complex area. There is no statutory obligation to provide discounted travel to young people, and I am afraid there are no plans to introduce it. Many commercial and publicly funded reductions are available. We are working to deliver significantly discounted bus travel for apprentices to ensure that no young person is deterred from taking up an apprenticeship by travel costs. I listened with interest to the point made by the noble Baroness, Lady Scott, about the National Citizen Service, which is an excellent programme. I will take that away and have a look at it.
The noble Lord, Lord Bradshaw, spoke about road user charging for vehicles as a solution to congestion. While I listened with interest, there are technical costs and privacy challenges and, not least, the importance of public acceptance of it, so I am afraid the Government have no plans to introduce such a road-pricing scheme. I am afraid there is more disappointment for the noble Lord, Lord Bradshaw, as the majority of English local authorities have taken on civil parking enforcement powers, but obviously not in the area in which the noble Lord lives. We think that CPE represents the most effective way for local authorities to manage and enforce parking. While we continue to support the rollout of CPE, we think it is up to each local authority to consider the financial and operational implications of taking on parking enforcement duties. For that reason, we let local authorities freely choose whether to apply for these powers, and have no plans to force the remaining non-CPE authorities to adopt them. But as I said, if they wish to do so, we will work with them. I am afraid I must also disappoint the noble Lord, Lord Bradshaw, on the extension of civil enforcement powers to moving traffic offences, such as the yellow box. We have no plans to extend them. It is important to recognise that congestion has a wide range of causes. Obviously, there is that enforcement in London and Wales. Although we still have congestion here, we think there are better ways to address it and we are working on those.
The noble Baroness, Lady Scott, the noble Earl, Lord Arran, and the right reverend Prelate the Bishop of St Albans all raised the important issue of rural areas. The noble Baroness is quite correct that different areas have very different needs and expectations. Of course, extra pressures are placed on local authorities to provide services in more isolated areas. The Minister for Local Government is intending to increase support for the most sparsely populated rural areas by more than quadrupling the rural services delivery grant from £15.5 million to £65 million by 2019-20.
The right reverend Prelate also made the important point that bus services are relied on by many different groups in rural areas. It is important that the lack of provision does not further exacerbate any issues of loneliness. I will certainly go and see whether we can address the issue of transport.
Baroness Randerson
Since this is International Women’s Day, we ought to note in this debate that bus passengers are much more likely to be women than men. There is an issue here not just of intergenerational fairness but of gender equality.
Baroness Sugg
I thank the noble Baroness for her intervention. I was thinking about whether I could say something about women, given that it is International Women’s Day. I was not aware of that fact, so I thank her.
Providing transport solutions across wider geographical areas requires the effective use of all available options, whether it be traditional fixed-route bus services, community buses, dial-a-ride—as the noble Earl mentioned—or other services, such as social care or non-emergency patient transport. At present, the Government provide over £2 billion each year in funding for those services. That is spent by different bodies which are often providing transport for the same people at different times; for example, someone using non-emergency patient transport to get to a routine hospital appointment one day can be using a local dial-a-ride service to go shopping or visit friends the next day.
The funds do need to be spent in a more joined-up way. The noble Earl raised the issue of Total Transport. Two years ago, we launched our Total Transport pilot schemes across England to explore how councils, the NHS and other agencies can work together. The results of those pilot projects are still being analysed, but it is already clear that there is considerable further scope for public sector-funded transport to work together, whether it is provided by local authorities, community groups or the NHS. We will be publishing those results shortly.
The noble Lord, Lord Bradshaw, asked about lane-rental schemes. The Government have trialled lane-rental schemes, encouraging utilities to work together at weekends and in the evenings. There is good news: that has proved successful. We are now encouraging local authorities to set up schemes in other areas across England. We laid a statutory instrument last week with guidance for local authorities and I look forward to the impact that may have on congestion.
The noble Baroness, Lady Randerson, asked about the environment. She is quite right that buses emit fewer air pollutants than the equivalent number of car journeys taken by road, but on urban routes, where the majority of buses operate, with the stop-start conditions, the slower speeds and the traffic, as we have discussed, there are obviously issues. That is why we are trying to clean up the bus fleet. As the noble Baroness recognised, we invest in green buses. There is more that we can do: we will shortly be publishing our strategy towards zero-emission vehicles. Emissions have not yet been calculated on a per-head basis, partly because that would impact on decisions on bus purchasing, and we want to encourage the purchase of clean buses. But we are looking at further developing our transport energy model, possibly including emissions per head.
There is no single solution that will work everywhere, but the Government have a commitment to local transport, and the powers in the Bus Services Act will help reverse the decline in bus use and drive up patronage. However, central government can go only so far to encourage bus use. Buses are not provided by the state: outside London, some 80% are provided by commercial bus operators. Most of the roads that buses use are the responsibility of local authorities. Much is in the hands of local politicians, local authorities and the bus operators themselves. We all need to work together to make sure that buses can provide an effective way of tackling congestion.
Again, I thank all noble Lords for their contributions today and the noble Lord, Lord Bradshaw, for introducing this debate. Buses are a key part of our transport system and perhaps we do not discuss them enough in your Lordships’ House. As the noble Baroness, Lady Scott, said, often our emphasis is on rail. However, with the SI this week, the debate today and the Question on rural buses from the noble Baroness, Lady Randerson, I am pleased that we have been given the opportunity to do so. Very appropriately, after waiting so long for a debate on buses, we have now had three come along at once. I hope that I have been able to demonstrate that the Government are committed to maintaining and improving local and public transport in all areas, whether in the largest cities or the most rural villages.