Bus Funding

Gareth Bacon Excerpts

Monday 18th November 2024 Commons Chamber

[Gareth Bacon (Orpington) (Con)]

I thank the Secretary of State for delivering her statement to the House, and for advance sight of it.

It was, of course, the last Government who provided £4.5 billion of funding to the bus sector since 2020 alone. Some £2 billion of that was allocated to support every single local transport authority in England to deliver their local bus service improvement plans, helping to support buses following the pandemic and ensuring more frequent, more reliable and cheaper bus transport across the country. Conservative Members are familiar with the need to properly fund bus services, but simply spending a bit more money will not necessarily improve outcomes. As such, we would welcome details on whether and how the Secretary of State can assure the House and the taxpayer that the money allocated today will actually go towards the improvement of bus services in the long term. How will she ensure that the money allocated today, and the bus service improvement plans that go with this investment, will remain aligned with any possible future franchising?

If the Secretary of State cannot give assurances on these points, there is a danger that the Government are taking short-term action that avoids facing complex long-term problems. Unfortunately, in the four months that this Government have been in office, that has been their approach to every single major issue they have faced so far. Whether it is the winter fuel allowance, the family farm tax or the increase to the bus fare cap, the Government seem at a loss as to why their policies are so unpopular, and why—only a few months into this Government—they are so deeply distrusted by the British public.

Governing is tough, and it requires taking real responsibility and considering the consequences of decisions before they are taken. For example, the decision to increase the bus fare cap from £2 to £3 will cost users more—[Interruption.] Wait for it. It will cost users more and—perversely—put at risk passenger services on certain routes, because it could counter-productively drive bus ridership down. Between 2022 and 2023, the £2 bus cap cut fares outside London by 7.4%, and the rate was 10.8% in rural and non-metropolitan areas in England. That is an example of a policy that worked, which is why the Government’s decision to increase the cap by 50% is such a disappointment.

The right hon. Lady, in defending her decision to hike bus fares, has been making the argument—she has done so again this afternoon—that the fare cap was to run only until end of the year. But as she knows full well—her Back Benchers can be excused for not knowing this—it is standard Government practice to set funding arrangements until a given date. She has guaranteed the £3 cap only until the end of 2025 and has made no commitment to extend it beyond that. She is also well aware that it was a Conservative party manifesto commitment to extend the cap and maintain it at £2 for the lifetime of this Parliament.

Not extending the £2 cap was not inevitable; it was a decision that the Government chose to make. Why do the right hon. Lady’s Government claim that they cannot afford to retain the £2 bus fare cap, which is making a real difference to the lives of passengers and the viability of public services across the country, and yet she can give hundreds of millions of pounds in additional funding here without any guarantee of success in improving service or delivery?

While I await the right hon. Lady’s answer, I have a theory. She is set on an undertaking—the ideological drive for bus franchising—and, make no mistake, it is ideological. Bus franchising does work in some places, but by no means will it work everywhere. The Government claim that they will not impose franchises everywhere, but there is a danger that her push for bus franchising will force local authorities into feeling that they are expected to undertake this ideological venture—one that they say they may well be unprepared and unequipped for—which would lead to a worse outcome for passengers. I call on the Secretary of State to make clear her answers to those questions and assure the House and the taxpayer that all the money allocated will be held to account in delivering real and lasting service improvement for passengers, whose interests should, of course, be at the centre of all decisions made by the Government.

[Louise Haigh]

I am grateful to the shadow Secretary of State for his questions, but I have to say that I will take no lessons from those on the Conservative Benches on good government. The approach to funding allocation is based on need, on deprivation, on population and on bus mileage, whereas his Government wasted millions of pounds in forcing areas to compete against each other, picking winners and losers, raising expectations and leaving some Tory-controlled areas such as Essex, where I was this morning, with absolutely nothing from the bus service improvement plan process. This formula and the funding allocated is a fair arrangement, ensuring that every area of the country gets the service levels it needs and can build the improvement plans that it wants.

I have to say that I will also take no lessons on ideology. For four decades, England outside London has experienced the failed deregulation of bus services, leading to a steady decline in passenger numbers. This funding is backed up by a once-in-a-generation reform to our bus policy, ensuring that we can deliver better bus services in every corner of the country, with public control backed up by funding and a Government who believe in buses.