UK Coach Industry

(Limited Text - Ministerial Extracts only)

Tuesday 13th October 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Keir Mather)]

It is a pleasure, Mr Turner, to serve under your chairship. I join colleagues in thanking my hon. Friend the Member for Dunstable and Leighton Buzzard (Alex Mayer) for securing this critically important debate, for her continued interest in the area and for holding the feet of Ministers in the Department for Transport to the fire on an important issue. I am pleased to have the opportunity to respond and participate on behalf of the Government. I wish everyone a happy National Coach Week.

I will turn later to some of the topics raised by my hon. Friend, particularly decarbonisation and the recruitment and retention of younger drivers. First, I want to touch on the point she raised about coach data, which is critical. She is right to say that the coach sector is relatively unevidenced compared with other major modes of transport. However, the available coach industry evidence suggests that there are about 2,500 coach operators in the United Kingdom, most of them small and family-owned, although she is right to say that no definitive national estimate currently exists. We must work tirelessly within the Department for Transport to remedy that.

I hope that hon. Members will be reassured about the Government’s commitment to supporting the UK coach sector, as well as the coach manufacturing sector, which has been raised by Members, in every part of the United Kingdom, including Scotland.

[Euan Stainbank]

I thank the Minister for talking about the importance of coach and bus manufacturing. The hon. Member for Aberdeenshire North and Moray East (Seamus Logan) described it as a waste of time for Members to raise that today; ludicrously, his old boss, Stephen Flynn and the Member of the Scottish Parliament for Falkirk West blame this place for the challenges that ADL has faced. Why does the Minister think SNP Members duck this debate depending on which Parliament they happen to be sitting in at a particular moment?

[Keir Mather]

I thank my hon. Friend and my hon. Friend the Member for Alloa and Grangemouth (Brian Leishman) for their remarks. Manufacturing and sovereign capability in our bus and coach sector is critical irrespective of where someone lives in the United Kingdom: it is a matter for both the UK Government and the Government in Holyrood. Irrespective of who is holding the pen, the Prime Minister has been clear that he wants to facilitate reindustrialisation and growth in every postcode of the United Kingdom. We want colleagues in the SNP and across the United Kingdom to help us in that work and to work collaboratively with us to ensure that UK domestic manufacturers have the support needed to carry out their vital work.

Coaches are an essential, if sometimes under-recognised, part of our transport system. They connect people with education, employment, family, leisure and major events. They support rail passengers during disruption and give communities an affordable way to reach destinations across the country. They are a very democratic form of transport.

[Sam Carling (North West Cambridgeshire) (Lab)]

A number of years ago, there was a great initiative in my constituency to run coach tours of local heritage assets linked to Mary, Queen of Scots and John Clare, the famous poet. Does the Minister recognise the value that the sector brings to supporting local heritage and tourism?

[Keir Mather]

I thank my hon. Friend for shining a spotlight on the impact that the coach sector has in his constituency, putting greater focus on our incredible British heritage sites; the point is incredibly well made. However, there is also a macro point here: the sector itself estimates that coaches provide around 450 million passenger journeys each year. It directly employs around 54,000 people and supports a further 27,000 jobs through its supply chain. It contributes an estimated £6.4 billion to the economy. As has been said, coach passengers are also estimated to spend £8.3 billion each year in local economies.

[Sir John Hayes]

The sort of people who travel on coaches are typically not the most advantaged—pensioners, for example, or children getting to school. Some people can afford coach travel but cannot afford other forms of travel. For the constituents I have mentioned already, as well as Fowler’s in Holbeach Drove, Cropley in Fosdyke and other local coach operators, will the Minister agree to the rebate on fuel that they have suggested? The industry has suggested a small short-term rebate to help it get over the hump of escalating fuel prices and therefore provide the service to the vulnerable people and many others whom I have mentioned.

--- Later in debate ---

[Keir Mather]

The right hon. Gentleman points to an important fact: the coach sector is used by those who may not otherwise be able to book public transport to get where they need to. Although those people can also benefit from the package of measures brought forward by this Government to give them much needed breathing space, including the £2 bus cap, he is right to encourage me to always go further to improve on that. Unfortunately, he will be momentarily disappointed as I cannot provide him with advance notice of what may or may not be in the Budget. However, his general point—that support is important—is well made. That is why the fuel duty freeze is currently in place.

The figures that I raised underline the sector’s importance to tourism, high streets and destinations throughout Great Britain. However, the industry is also rooted in local communities. Many of those operators are small and family-run businesses that have served their areas for generations, as the hon. Member for Aberdeenshire North and Moray East (Seamus Logan) pointed out from his own personal experience. We want those businesses to grow, invest and continue providing the flexible services on which passengers, schools and businesses depend.

I turn first to driver recruitment. We must continue to have an open dialogue with the coach sector about its challenges to doing business and what the Government can do to help. Driver recruitment is central. I recognise the sector’s concerns about recruiting and retaining drivers, in particular about the restrictions affecting younger drivers, which multiple hon. Members have raised today.

At present, 18 and 19-year-olds may drive buses and coaches only on regular services of up to 50 km. That can severely limit the work available in a sector where journeys are often of longer distance or not part of regular services. My hon. Friend the Member for North Durham (Luke Akehurst) and the right hon. Member for South Holland and The Deepings (Sir John Hayes) also raised the issue of when young drivers can begin their qualifications and theory tests. I will certainly take that away and raise it within the Department.

The Department has been engaging with the bus and coach industry, alongside road safety groups, to understand the potential impacts of amending the restrictions that apply to young drivers. However, I want hon. Members to be assured that we are working hard and at pace to get the next generation of drivers into the coach sector. We are considering the evidence carefully and will set out our next steps in due course. However, I will ask the Under-Secretary of State for Transport, my hon. Friend the Member for Wakefield and Rothwell (Simon Lightwood), the Minister with direct responsibility for this matter, to set out more detail on the timings in writing to my hon. Friend the Member for Dunstable and Leighton Buzzard.

I turn now to cost pressures, which have been a consistent theme of this debate; they were particularly raised by my hon. Friend the Member for North Durham. I recognise that operators face pressures at the pump. That is why the Government have extended the 5p fuel duty cut until the end of the year, which provides important support to businesses, including coach operators. We will continue to work closely with the sector, listening to its concerns and ensuring that the challenges facing coach operators are understood across Government.

There is also a continued role for international advocacy, which sits within my role at the Department for Transport: working with colleagues both across Government and with the UK delegations at the International Energy Agency, to ensure that we continue to maintain a robust supply of diesel into the United Kingdom.

[Greg Smith]

I want to raise an issue that I appreciate sits more with the Treasury than with the Department for Transport. Since fuel costs increased earlier this year, the Government have taken in over £1 billion in extra unexpected income to the Treasury from VAT on those higher fuel prices. The money is there to support the coach sector, the logistics sector and other sectors that so desperately need it, is it not?

[Keir Mather]

Later in my speech, I will reflect more on the steps that we are taking to support the coach sector, especially in building the longer-term resilience that we believe can be achieved through the benefits that can be accrued from decarbonisation. The hon. Gentleman is right to raise the issue of rising fuel prices, which concerns the Government and on which we work on in close collaboration with the sector. He will, of course, understand that ahead of the Budget I cannot say much more about the exact issue that he raised.

I turn next to the issue of transport connectivity and the indispensable role of coaches as part of an integrated transport network. Earlier this year, the Department published “Better Connected”, the Government’s strategy for integrated transport in England. It sets out a clear national vision for all partners across the transport system to create integrated networks that work well for people and are safe, reliable, affordable and accessible, so that people can make their journeys easily. Its principles of putting people first, creating well-connected places and working in partnership apply across all forms of transport, but perhaps no more than in relation to coaches, which have a critical role to play as part of an integrated picture, particularly in connecting people to education and visitor destinations, but also in connecting rural communities and supporting elderly residents, as was raised by the hon. Member for Didcot and Wantage (Olly Glover). Better information, well-designed interchanges and closer co-ordination with rail, bus and local transport can make journeys easier, and we will continue working with local leaders to ensure that coach travel is properly considered in local transport plans.

I will also just touch briefly on an important point made by my hon. Friend the Member for Aylesbury (Laura Kyrke-Smith) about working more closely with local authorities to break through planning challenges. Currently, there are obligations for local authorities to have regard to land use and land need for myriad factors that do not pertain to driver welfare stops as they relate to critical national infrastructure on the strategic road network. There is more work for the Department of Transport to do in order to work more closely with local authorities to make them more aware of just how critical it is to have proper freight and coach connectivity to every part of the United Kingdom.

I turn next to zero emission coaches. Coaches already provide an efficient form of mass transport, but we recognise the need to support the sector to go further in a way that makes good business sense. The transition to zero emission coaches presents particular challenges that I am very cognisant of: journeys can be long and variable, vehicles may spend extended periods away from their depot and operators need confidence that suitable charging will be available. The Government’s £170 million multi-year depot charging scheme supports zero emission HGVs, vans and coaches by part-funding charging infrastructure at fleet depots. Its first 2026 funding window offered support for up to 70% of eligible charge points and civil engineering costs of up to £1 million per organisation.

[Jim Shannon]

The Minister is right to underline the issue of energy efficiency, but when it comes to ensuring that companies across the United Kingdom—Scotland, Wales, Northern Ireland and here in the mainland—could work together, does he agree that the Government need to push energy efficiency through all the companies so that they can all gain?

[Keir Mather]

The hon. Member raises a really important point about ensuring that where the Government are encouraging decarbonisation and the resilience benefits that that can bring for the long term, it has to be done in a sustainable way, recognising the particular challenges faced by the coach sector in meeting that challenge. That applies in every part of the United Kingdom, but especially in Northern Ireland and the sort of area that he represents, where the tourist economy is so essential. Coach connectivity is critical to ensuring that his local economy continues to thrive, so that is an important point well made.

Depot charging will meet many operating needs, but as Members have raised today, longer-distance journeys will also require appropriate charging facilities at destinations and strategic locations. The Government’s forthcoming zero emission HGV and coach infrastructure strategy will provide clearer national direction—a road map, some might say—for how that infrastructure will develop, and we will continue engaging coach operators, charge point providers and motorway service area operators as the network expands. We understand that ultimately the transition must be practical, commercially viable and shaped by real operating patterns.

To touch briefly on accessibility, coaches provide vital connectivity for many people with disabilities. It is essential that they are able to travel safely, confidently and with dignity. That is just as important when they travel on leisure, rail replacement and home-to-school services as it is when they make long-distance journeys. Accessibility should be considered at all stages of the passenger journey, from finding information and planning trips though accessing coach stations and stops, and boarding, alighting and travelling on the vehicle. Accessible information is vital for giving disabled passengers the confidence to use services, and from 1 October, all coaches operating services that are subject to the accessible information regulations, which are largely rail replacement, must be compliant unless they are covered by an exemption. That is part of the broader work we are doing to ensure a more accessible transport network.

I will draw my remarks to a close by thanking my hon. Friend the Member for Dunstable and Leighton Buzzard again for securing this critically important debate, and all the Members who have contributed and shared their personal and constituency-level experiences of the phenomenal contribution that the coach sector makes to our economy. I hope I have demonstrated that the Government recognise coaches as a vital part of the transport system—not just something that is lumped in with HGVs and other modes, but that deserves cognisance of the challenges coaches face and the enormous opportunities and benefits that they bring to communities across the United Kingdom in supporting growth, widening opportunity, strengthening tourism and connecting communities. We will continue working with the sector to support its progress and tackle some of those barriers together, including on growth and integration with the wider transport network, strengthening the workforce, increasing investment and progressing towards decarbonisation. Our aim is clear: we want a thriving, inclusive and sustainable coach industry that passengers can rely on for years to come, and I think that hon. Members from across the House have pushed us further in that direction today.