Bus Services

Lord Rosser Excerpts

Wednesday 11th May 2016 Lords Chamber

[Lord Rosser (Lab)]

First, I thank the noble Baroness, Lady Randerson, for having secured this debate and for giving us the opportunity to discuss a vital mode of transport that is used by millions of people to get to work, to seek work, to attend hospital, to go shopping, to travel to and from school or to spend a few hours in their busy lives enjoying some leisure time.

The new Mayor of London has already made one policy announcement on reducing bus fares, by enabling passengers to make a second bus journey without further charge within one hour of touching in on the first bus. This will be extended by 2018, once ticketing technology has been upgraded to enable passengers to make unlimited bus transfers within one hour—Labour in action, cutting costs for bus passengers and increasing the attractiveness of bus travel.

There were some 4.6 billion passenger journeys, as has been said, on buses in England last year. That sounds a lot but the trend is downwards. There are commercially operated services and services supported by local authorities. The Government’s consistent attack on local government budgets over the last six years has led to a reduction in the ability of local government to provide the money to maintain bus services which are needed but which commercial operators will not provide themselves because they would not be profitable to run. This situation is continuing and even though this Government are spending money or giving handouts elsewhere at present, some local authorities are still being forced to review the extent to which they can continue to provide much-needed bus services for the communities that they serve, due to funding cuts.

More than half of all local authorities in England have cut funding for buses in the last year to 18 months while some 40% have removed or withdrawn services. Seventy per cent of local authorities have cut support for bus services since 2010. In addition to the cut of nearly a third in funding for local authorities, the bus service operators grant, which provides a fuel duty rebate to bus service operators, has been cut. Local authorities have had to reduce funding for bus services by at least 15%, while bus fares have risen by a quarter over the last five years. Some 2,400 local authority-supported bus services have been cut or downgraded.

Unprofitable but needed bus services account for some 17% of bus services in England outside London—down from 24% in 2009-10. They are often the only form of public transport which people in more isolated communities, outside conurbations and major towns, can access. A Commons Transport Select Committee report on passenger transport in isolated communities stated:

“The DfT must recognise that passenger transport provision is fundamental to achieving the objectives of the Department of Health, the Department for Work and Pensions and the Department for Education in isolated communities”.

Of course, one-third of all bus journeys are undertaken by the 10 million older and disabled people with concessionary bus passes, like me. Councils have a statutory duty to provide free off-peak bus travel, but funding for the scheme has been cut by nearly 40%, which means that increasingly councils are having to subsidise this free travel at a time when they are struggling to protect vital services such as adult social care, protecting children and collecting household rubbish.

It was of course the 1985 Transport Act which deregulated bus services in England outside London. Since then, local bus passenger journeys made outside London have decreased, as has already been said, by 37%. More than half of all bus passenger journeys made in England now occur in London, which with its regulated services has seen an increase of some 100% in bus use since 1985—albeit, as I understand it, bus use in London may have decreased last year.

In a briefing for this debate, Transport for Greater Manchester said that in its area, bus patronage has remained flat for very nearly the last 20 years. This is better than across Britain as a whole, but does not stand favourable comparison with London. Transport for Greater Manchester says that one of the key reasons behind what it describes as the poor patronage performance of buses derives from the current deregulated market structure. The problem, it says, lies not with the bus companies but with the system within which the companies are obliged to operate. Deregulation, it says, limits the degree to which bus services can be fully joined up and co-ordinated with each other and with other public transport modes. It also inhibits sensible and easy joint ticketing systems such as Oyster, and, unlike in London, it is not possible to offer a single, simple range of tickets valid on all operators’ services. Passengers, it says, are presented with a confusing array of single and multi-operator tickets, and are forced to commit to a particular ticket in advance of travelling, which can be problematic if their travel needs unexpectedly change.

Transport for Greater Manchester continues by saying that deregulation presents a confusing and ever-changing picture of services to the passenger. It prevents, it says, efficient cross-subsidy. On-road competition means that available bus resources are not deployed as efficiently as they could be under a planned franchised environment. Consequently, deregulated bus services in Greater Manchester are not fulfilling their undoubted potential and consequently are not fully serving the city region’s long-term needs. Franchising, says Transport for Greater Manchester, presents a well-understood and much-used model of delivery that secures the benefits of competition while allowing passengers to use an efficiently co-ordinated set of bus services within an integrated public transport network.

When the Minister responds, perhaps he could confirm that those views on a deregulated bus system compared to a regulated or franchised system expressed by Transport for Greater Manchester also reflect the Government’s view. I do not recall the last Mayor of London—who had some sympathy with the Government, apart from on membership of the European Union—ever campaigning to have a deregulated market structure for buses introduced in the capital. Could the Government also say when the elusive buses Bill is going to start its legislative journey through Parliament, which House it will go to first and when it is expected by the Government to reach its destination and become an Act?

Could the Minister say something about the intended content of the buses Bill and whether, in the Government’s view, it will deliver the changes to the current deregulated market structure that Transport for Greater Manchester is seeking, as set out in the briefing to which I referred? Could the Minister also say, if that is the case, whether the Bill will enable those changes to apply to all local transport authorities that want them?

The Question we are discussing refers to the impact of trends in the provision of bus services on the environment. Buses are becoming much more environmentally friendly, thanks in part to European regulations, but with bus use in decline outside London and the number of buses on the roads falling, the potential favourable environmental impacts of cleaner buses are being diminished, not maximised. Of course, a number of local areas have seen the introduction of environmentally friendlier buses, including London, Reading, Southampton, Newcastle, Bristol and in parts of Lancashire. Transport authorities should have powers to set environmental standards for buses in their area of operation. Perhaps the Minister can tell us whether that is a power that transport authorities generally will be given.

Increasing bus patronage is environmentally friendly, particularly if it results from a transfer from journeys by car. Achieving that includes making journeys by bus a relaxing and stress-free experience. In London, nearly all buses have audiovisual announcements telling passengers the next stop—a crucial facility for those who are visually impaired or hard of hearing. Outside London, apart from areas where local authorities still operate buses, audiovisual announcements are few and far between. Bearing in mind the many calls for such a facility to be provided, including from parliamentary committees, can the Minister assure us that a requirement to have audiovisual announcements on buses—at the very least, on new vehicles—will be included in the forthcoming buses Bill? There is surely no excuse for not doing so. Likewise, can the Minister assure us that the buses Bill will include a requirement for drivers to have the benefit of disability awareness training since, once again, such training can mean the difference between those with a disability feeling encouraged to travel by bus and discouraged from travelling by bus? As I understand it, disability awareness training is, to say the least, patchy.

The buses Bill presents an opportunity for the Government to reverse the damage that has been and continues to be done to local bus services outside London in recent years and to provide, where there is such a demand, for a structure and system for the operation and regulation or franchising of bus services that promotes and encourages bus use, along with the funding to enable these objectives to be delivered. I hope that when the Minister responds, he will reply to the many specific questions raised in the debate and set out how the Government intend to grasp the opportunities provided by the buses Bill for increasing and improving bus services on which so many people depend.