Bus Funding

Caroline Nokes Excerpts

Monday 18th November 2024 Commons Chamber

[The Secretary of State for Transport (Louise Haigh)]

With your permission, Madam Deputy Speaker, I will update the House on our plans for better buses in England outside London. When we talk about fixing the foundations of our country, our minds should turn to the nation’s most popular form of public transport, because nothing props up our economy more or better supports our society than the 3.4 billion passenger journeys carried by our buses each year. They are more than just taking people from A to B: they are a lifeline for young and old, in cities or towns, binding us to jobs, public services and opportunity. From trips to the shops or a doctor’s appointment to a job interview, buses shoulder the daily needs of Britain and, in doing so, underpin every single one of our national missions. That is why, come what may, this Government will always back our buses.

Like much of the economy, our inheritance is dire. Some 40 years of failed deregulation have turned many lifeline bus services into liabilities. Passengers are let down as they sometimes wait for hours for buses that do not turn up. Areas are cut off as operators prioritise more viable routes in town centres. Fares continue to rise, and nearly 300 million fewer miles are being driven than in 2010. None of this was inevitable or an accident, but all of it was down to choices—political choices—paving the way for decline and placing a ceiling on the ambitions of many, especially the poorest in society, who catch 10 times more buses than trains. Enough is enough.

This Government have chosen to back our buses and the millions who rely on them every day. In last month’s Budget, we confirmed more than £1 billion in funding to improve services, protect vital routes and keep fares down. Today, we are distributing that funding, which means more than £700 million for local councils to deliver bus service improvement plans and better meet local needs, and a further £243 million for bus operators, including funding a long-standing grant to drive down fares and drive up services.

In many places, this is record investment, and every region and authority in England will benefit, especially areas that are historically underserved, such as rural areas and small towns. Councils such as Leicester, the Isle of Wight, Torbay and Cambridgeshire will see unprecedented levels of funding for services. Routes that are at risk will be saved and passengers will see faster, more reliable journeys. We are also putting money into safer bus stops and more accessible passenger information so that our bus sector is fit for everyone. I am delighted that metro mayors have welcomed the announcement, with city regions such as Greater Manchester, West Yorkshire and Liverpool receiving some of the biggest allocations.

That is not all. We are committing over £150 million to cap bus fares at £3, ensuring passengers do not face a cliff edge of higher prices from next year, particularly in rural areas where buses are a lifeline. The current fare cap was only funded until 31 December, meaning that without the action we are taking, some fares would have risen by 80%. We were not going to let that happen. We are investing to keep fares down, putting money back in people’s pockets, and to provide more frequent services so that more people can get to more places at more times of the day.

Not only are we a pro-investment Government, we are a pro-reform Government. We will not hesitate to overhaul parts of the system that simply are not working for passengers. If that means changes to how we allocate resources, we will make them; if passengers’ needs are not being met, we will prioritise them; and if laws are needed, we will introduce them. We have called time on the way that bus funding has historically been allocated. Previously, the Government made councils compete for funding, wasting resources and delaying decisions. That was overly complicated, led to inconsistent funding, and created uncertainty for authorities and operators. We are taking a fundamentally different approach.

We have allocated funding based on local need, population, the distance that buses travel, and levels of deprivation. That puts fairness at the heart of future funding and ends the postcode lottery for bus services. It ensures taxpayer money goes to the areas that are most in need, where it will have the most impact and where passengers will most benefit. This is the first stop on our journey to support local areas to take back control of services and deliver better buses across the country.

Finally, we will introduce our landmark buses Bill in the coming weeks—the biggest shake-up of the sector for 40 years. This Bill will allow councils across the country to adopt franchising models, as in Greater Manchester and London. That means local leaders taking back control of services, ensuring that routes, fares and timetables are all geared towards local passenger needs. This model works. It has been over a year since buses were brought under public control in Greater Manchester. Since then, passenger numbers have grown, reliability has improved, and new 24/7 services have been introduced. Roads are now managed in a way that works for buses, meaning that unexpected congestion or unplanned roadworks do not leave passengers stranded. That is what power in local hands looks like. It is why we are simplifying the franchise process to ensure local leaders waste no time in driving improvements for passengers. We will also remove the ideological ban on publicly owned bus companies so that our buses can finally be run for the public, by the public.

I have said it before, and I will say it again: when it comes to our public transport, we are moving fast and fixing things. After years of decline, we are putting passengers back at the heart of our buses through record levels of investment and generational reform. Last month’s Budget sent the signal that, even in difficult economic times, this Government will never take our buses for granted, because we know that investing in buses means investing in people, in communities and in the future growth of our country. Better buses are just a few stops away.

I commend this statement to the House.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Secretary of State.

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[Louise Haigh]

I am grateful to my hon. Friend for her support. Not only are we ensuring record funding for the majority of areas in this country; we are pushing ahead with reform. There is no point throwing money at a broken system, as the previous Government were so content to do. I am delighted that we are able to deliver better bus services for the people of Luton.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Mr Paul Kohler (Wimbledon) (LD)]

I thank the Secretary of State for advance sight of her statement, which I warmly welcome. As she made clear, access to convenient, frequent and affordable buses is vital. They are critical to both employment and quality of life, particularly in rural areas. Sadly, however, too many parts of our country lack decent bus services, after years of Tory neglect. At a time when we desperately need economic growth, ensuring a comprehensive and affordable bus network is vital.

I congratulate the Secretary of State on securing the promised funding. However, we have some concerns. Uncertainty still surrounds how local authorities can seize the opportunities heralded in the promised changes to bus franchising. Furthermore, if, as the Secretary of State believes, buses are a lifeline for young and old, why is she hitting bus users with a 50% increase in fares? Polling commissioned by the Lib Dems and published last week showed that the hike will make a third of people less likely to use a bus, which will have a direct impact on individuals, communities, small businesses and high streets, and will hit the most disadvantaged in society the hardest. It would cost just £150 million a year to retain the £2 fare cap. Again, I ask her to reconsider.

I would like to ask the Secretary of State three specific questions. First, when will she publish the full impact assessment on the £2 bus fare cap, commissioned by her Department earlier this year? Secondly, will she guarantee that the new powers needed for local authorities to franchise bus services will be provided urgently, so that bus routes can be restored and new ones added as soon as possible? Lastly, although I welcome the change to the allocation process and the rejection of wasteful and expensive competitive bidding between councils, will she confirm that the new, more flexible system will not succumb to the temptations of pork barrel politics that we saw so frequently under the last Conservative Government?

--- Later in debate ---

[Louise Haigh]

My hon. Friend is right: cutting services such as the 46 has real-world implications for people attempting to access work, see their friends and family, or get to the local high street. Having a franchised system under the Mayor, Richard Parker, will mean that he has control. He can contract out the 46 service and require an operator to run it. At the moment, when an operator cuts a service we have no say or control over that, which is what leads to those terrible real-world consequences.

[Madam Deputy Speaker (Caroline Nokes)]

I thank the Secretary of State for coming to the Chamber personally to give that statement.