Bus Funding

Baroness Pidgeon Excerpts

Tuesday 19th November 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

The raising of the cap from £2 to £3 was entirely necessary because of the fiscal position that this Government inherited. A cap of £3 is actually a pretty good cap in rural areas with long bus journeys compared with the previous fare structures. We know that many fares have gone down by 60%, 70% or 80% for passengers. Of course, there will be some who have to pay more under this system. The subject in question—the distribution of local bus funding for the next year—is designed to make sure that there are services to travel on. It is not just bus fares that matter. What matters equally is that there are buses to travel on. This distribution will ensure that there are buses across the whole of England, in local transport authority areas, to do so.

[Baroness Pidgeon (LD)]

My Lords, I welcome the Statement and the fact that we are talking about buses in the House, but in some parts of our country, including rural areas, bus services have not only been reduced but have vanished completely. What special support will the Government be providing to help rural authorities rebuild their bus services, including an integrated fund to support the switch to zero-emission buses? Can the Minister clarify, following the discussion we have just had, over what period this funding is being provided? As he has already outlined, single-year funding settlements and stop-start pots of funding will not reinvigorate our bus services across the country.

[Lord Hendy of Richmond Hill (Lab)]

The funding provided by what is effectively a £1 billion settlement will allow local transport authorities in all areas to spend this money in the best possible way. I am very sympathetic to rural areas, where services have disappeared in the past, and I have explained some of the reasons why recently that might be the case. There is capital funding in this settlement for zero-emission vehicles, as there should be. It is for one year, but the spending review in the spring will no doubt give direction for future years. The equitable distribution of this through this serviceable formula is much more likely to result in service patterns across both rural and urban areas, which will be sustainable into the future.