Bus Services (No. 2) Bill [HL]

Earl of Effingham Excerpts

Committee stage
Tuesday 28th January 2025 Grand Committee

Moved by

[The Earl of Effingham]

1: Before Clause 1, insert the following new Clause—
“Purpose: improvement of bus passenger services(1) The purpose of this Act is to improve the performance and quality of bus passenger services in Great Britain.(2) The Secretary of State must, in taking any actions under the provisions of this Act, have regard to this purpose.”Member’s explanatory statement
This amendment would place a duty on the Secretary of State to have regard to the purpose of the Act, namely the improved performance and quality of bus passenger services in Great Britain.

[The Earl of Effingham (Con)]

My Lords, the amendment standing in my name seeks to insert a new clause into the Bus Services (No. 2) Bill explicitly setting out its purpose; namely, improving the performance and quality of bus passenger services in Great Britain. It is imperative that we make this purpose clear, not just for the sake of the Bill’s integrity but because the millions of passengers relying on buses need action in addition to words.

As many noble Lords know, bus services are a vital lifeline for millions of people, connecting communities, supporting local economies and reducing congestion and emissions. However, we also recognise that in many areas the services are not meeting the needs of passengers. The Bill seeks to address those challenges and shortcomings, and this amendment seeks to ensure that the overarching aim of improving bus services remains at the heart of all decisions undertaken in its provisions. By explicitly requiring the Secretary of State to have regard to this purpose, we are embedding into this legislation a commitment to improve bus services. This is not a mere formality; it is about setting a clear duty on the Secretary of State to put the improvement of bus services at the core of any decisions he or she makes under this legislation.

As we consider the purpose of the Bus Services (No. 2) Bill, I draw the attention of the Committee to a recent report prepared by KPMG in conjunction with the Confederation of Passenger Transport. This report underscores the vital economic, social and connectivity benefits that local bus services deliver across the United Kingdom. The findings are compelling. The bus sector contributes a staggering £11.3 billion annually to our economy, supporting 105,000 jobs directly and an additional 53,000 jobs in the supply chain. Beyond this, the ripple effects of bus services are profound, as bus passengers spend nearly £40 billion each year in our high streets, cafes, restaurants and leisure destinations.

For rural communities, which we will discuss in future days in Committee, buses are nothing less than an absolute lifeline. Over 680 million journeys per year begin in rural areas, where buses are often the sole form of public transport, providing critical access to jobs, education and essential services. Those passengers contribute £7.1 billion to local economies, while the availability of bus services supports £1.6 billion in economic benefits through improved connectivity and affordable travel. Please let us not overlook the societal benefits. Reducing social isolation, supporting volunteerism and ensuring access to healthcare generate an additional £500 million in wider societal benefits annually in rural areas alone.

These figures remind us that buses are far more than just a mode of transport. They are an engine for economic growth, a bridge to opportunity and a force for social cohesion. They also underscore why it is essential to ensure that the purpose of this legislation is clear and focused on the improvement of performance and quality in bus services.

However, I am concerned that the Government, in their haste to overhaul the system, are pushing us back to a pre-1980s model without providing any firm evidence that this will actually work in the context of modern Britain. The Government’s proposed measures lack the necessary data, analysis or proof that they will lead to real, tangible improvements in bus services. If this Bill is not a case of “public sector ownership is good versus private sector ownership is bad”, the burden must be on the Government to provide the evidence that their approach will deliver the outcomes that they promise. This is a move that forces a one-size-fits-all approach to our bus services, a model that fails to recognise the nuances of different regions and communities across the country. We cannot simply take the London model, a model for a city of 8 million people, and attempt to shoehorn it into every other part of the country without considering the vastly different needs of those areas. The assumption that what works in one city will work everywhere else must be challenged with a laser focus.

We have to ask why the Government are pushing for this. Why remove the Secretary of State’s oversight and impose a one-size-fits-all solution without taking the time to understand the specific needs of each area? Why assume that regional authorities, some of which, as they have said, have far less experience in managing transport systems, will be able to execute a franchise model as successfully as London?

It is worth noting that, not long ago, we anticipated that this legislation might carry the name “Better Buses Bill”, and while the name has since changed, I do not believe that this reflects any attempt by the Government to shy away from their commitment to improving bus services. On the contrary, I trust that the Minister, like all of us here in the Moses Room and beyond, is firmly committed to the goal of creating an efficient and affordable bus network that meets the needs of passengers across Great Britain, but there is nothing in the Bill that reflects that. That is why we are seeking to insert this unequivocal duty, so that all current and future Ministers put the improvement of bus services first.

Allow me to be crystal clear: this amendment is not about creating unnecessary bureaucracy—far from it. It is about ensuring that the Bill’s intent is explicit from the outset. The amendment would not impose any burdensome process or stand in the way of progress. Rather, it simply sets out the overall purpose of the Bill; namely, improving bus services. By doing so, we will ensure that the focus remains squarely on what matters most: delivering tangible improvements for bus passengers. There is no new red tape, no delays in implementation, just a clear statement that the purpose of the Bill is and always should be the improvement of bus services. I beg to move.

[Baroness Jones of Moulsecoomb (GP)]

Can I ask the noble Earl whether this is going to be another Bill that the Tories filibuster to the point where the rest of us just want to slit our throats? Is this really going to happen the way it did with the rail Bill? I have had enough; I have other work to do. I have tabled good amendments that I want to see happen sometime soon, so are we going to see a load of nonsense from the Conservatives again? Perhaps the noble Earl can give a clear statement on that.

[The Earl of Effingham (Con)]

I say to the noble Baroness, Lady Jones, that in the same way that we saw her speaking to other noble Lords on the previous Bill, when she said this was happening in the Chamber, we should continue with the proceedings and listen to what everyone has to say, which is everyone’s right in this Room.

[Lord Grayling (Con)]

My Lords, I will speak only briefly, but I want to raise a particular point with the Minister on which I would like his clarification. What I would say to the noble Baroness who has just spoken is that, having just arrived in this place from the House of Commons, I find it noticeable that the depth of scrutiny of Bills seems to be rather deeper here. In many ways, as a former MP, I regret that, as it should not be like that. It is important that legislation is scrutinised carefully and questions are asked. I think that this House plays a very important role in ensuring that legislation is as good as it possibly can be.

The issue I have to raise with the Minister is the reason I support the amendment moved by my noble friend. I worry that ideology may sometimes get in the way of good service. I know that it would not happen in his case—I have the highest respect for the Minister—but I can quote one or two other examples in government, the future of academies, for example, where ideology seems to be treading on the toes of what is best for young people. I would not wish that to happen in the area of transport and buses, and I have misgivings about the Government’s plans to allow the setting-up of municipal bus companies. There is no obvious mechanism to ensure that there is a high-quality case for doing so.

I have also been quite worried about a simple principle. One of the things that has always attracted me to deregulation is the ability of an individual or a group of individuals to decide that the firm they work for is not doing a good job, so they will set one up in competition and do a better job themselves. I see no real reason why a simple clause such as this that places a duty on not just the Minister personally but those who work for him to ensure that the decisions they take, the interactions they have and the things that follow through from this legislation deliver high-quality, better bus services and are not just there for ideological reasons.

My noble friend mentioned London and the concern that certainly exists outside London. What makes London distinctive in bus terms is that it is vastly more subsidised than any other part of the country. I remember as Secretary of State being surprised to discover the level of discrepancy. What we all want is the best possible service. That is why I relaxed the franchising rules five years ago. I cannot see the objection to a simple clause that places a duty on the Minister and the teams who work for him to ensure that every decision taken is the best one for the passenger.

--- Later in debate ---

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, the first group of amendments relates to the Bill’s purpose. At Second Reading, I set out the need for this Bill and explained why the Government are taking action to transform bus services across England. The Bill provides new powers for local leaders, so that local communities in England have greater control over bus routes and schedules. I thank the noble Earl, Lord Effingham, and the noble Lord, Lord Moylan, for their amendment and the opportunity to revisit the Government’s objectives.

Amendment 1 would place a direct requirement on the Secretary of State to have regard to improving the performance and quality of bus passenger services in Great Britain—in fact, it would make this the statutory purpose of the Bill. I absolutely support the reasons why noble Lords have drafted this amendment: they, too, want to achieve a better bus network that is more reliable and performs well. That is a shared goal. The reason we are here debating this important legislation is to reform the industry.

I recognise the points made by the noble Earl, Lord Effingham, about the KPMG report, and by the noble Baroness, Lady Pidgeon, about the benefits of buses to individuals and communities, as well as the inadequacies of the current arrangements. However, I am bound to disagree with the assertion that there is no evidence for the Government’s approach. There is plenty of evidence, some of which we have already talked about, such as the improvements in Manchester and elsewhere, including Cornwall, which is not a large conurbation. I also disagree with the assertion that there is public good and private bad in here. This is a very large menu of choices for local transport authorities. It is certainly not one size fits all.

As the noble Baroness, Lady Pidgeon, observed, during the passage of the Passenger Railway Services (Public Ownership) Act 2024, the noble Lords, Lord Moylan and Lord Gascoigne, tabled a very similar amendment. It sought to insert a purpose clause setting out improvement of passenger railway services as the purpose of that Act. At the time, I explained that the Secretary of State’s and the Government’s wider plans and objectives for the rail network included improving performance but noted that this was not the sole purpose. I offer the Committee the same rationale for this Bill. The amendment to the public ownership Bill was not carried.

Of course the objectives of this Bill include improving reliability and performance. They are important aims, but the Bill seeks to do more. It seeks to improve safety and accessibility, to provide local leaders with the powers to make the right decisions for their local areas, to support reaching net zero and to put passengers at the heart of the Government’s reforms. The noble Lord, Lord Grayling, was kind enough to suggest that I would not let ideology triumph over the right solutions. In this case, the Government are not doing that, either.

The Bill contains a range of solutions for local bus issues, which allow local choices for the best solutions and would recognise, in appropriate cases, both the adequate provision of bus services by their existing means, with commercial operators, and the range of solutions, including both large and small operators. To single out one objective would undermine the message that the Government are trying to convey to local authorities, passengers, operators and the wider industry. Thus, I do not support the proposal.

Extending this requirement across Great Britain also presents significant difficulties. The Committee will have noted that most of this Bill extends to England and Wales but applies only in England, with a limited number of clauses that extend and apply to Wales and/or Scotland. In tabling Amendment 1, noble Lords appear to be seeking to apply all the Bill’s measures across the whole of Great Britain. That would raise the potential of cutting across the powers of the Scottish and Welsh Governments to decide how to run their own bus networks and what is best for their local communities. That would not be the right approach. It would mean the UK Government interfering in policy areas where the devolved Administrations categorically do not want that. It also potentially undermines their reform agendas; as some noble Lords will be aware, the Welsh Government are due to introduce their own Bill into the Senedd in the coming months, as they seek to introduce bus franchising.

This amendment would also have significant ramifications on time and resources. Local transport is devolved, so legislative consent Motions would be required. That would potentially slow down the passage of the Bill and the pace of the Government’s reforms, which would be a bad outcome for passengers, who desperately need better bus services now, for the reasons set out by the noble Earl and the noble Baroness earlier. I am sure that noble Lords opposite would not want this outcome and therefore hope that this amendment will be withdrawn.

[The Earl of Effingham (Con)]

My Lords, I thank the Minister for his response, but I cannot hide the fact that we are disappointed. The former Secretary of State for Transport in the other place, Louise Haigh, stated:

“Reliable, affordable and regular buses are the difference between opportunity and isolation for millions of people across the country”.


She went on to pledge that a Labour Government would empower every community

“to take back control of their bus services, and … support local leaders to deliver better buses, faster”.

Action speaks louder than words and we must see follow- up. That is why we must ensure that the Bill lives up to the expectations of those who rely on bus services every single day.

Promises will do little to help the millions who depend on reliable transport. They need tangible improvements and accountability to be enshrined in this legislation. I believe that placing this explicit duty on the Secretary of State would provide a valuable guiding principle throughout the Bill’s implementation. It would ensure that every step taken under the Bill would be aligned with the objective of improving bus services for all those who rely on them.

I remind all noble Lords that paragraph 1 of the Government’s Explanatory Notes for this Bill states:

“The Bus Services … Bill brings forward primary legislative measures intended to support the government’s commitment to deliver better buses”.


Please may I ask: what better way is there to show commitment to passengers than by committing to this amendment? If the Government do not feel that this purpose clause is necessary for the Bill, can the Minister please explain how they will make clear their wholesale commitment to passengers across the board? On that note, I beg leave to withdraw the amendment standing in my name.

Amendment 1 withdrawn.