Bus Services

Debate between Gordon Marsden and Graham Stringer

Tuesday 17th June 2014 Westminster Hall

[Mr Gordon Marsden (Blackpool South) (Lab)]

It is a great pleasure to serve under your chairmanship, Ms Dorries. I congratulate my hon. Friend the Member for Corby (Andy Sawford) on securing the debate. He described in some detail the circumstances in his region, Northamptonshire, demonstrating the trueness of the phrase “All politics is local”. The information that he drew on came from the excellent freedom of information request made by the shadow Secretary of State for Communities and Local Government, my right hon. Friend the Member for Leeds Central (Hilary Benn), who discovered that Northamptonshire was the hardest hit of all boroughs, with 55% of its funding for local bus services cut since the coalition came to power in 2010.

My hon. Friend the Member for Corby also made the point that the issue truly is a national one. He discussed the challenge faced by the most vulnerable—the elderly and the disabled—as well as issues relating to quality of life, and spoke eloquently of a constituent who saw a new bus stop outside his house when no bus had gone past for years.

I also pay tribute to the other two Members who spoke. The hon. Member for Strangford (Jim Shannon) underlined the fact that bus services are truly a United Kingdom issue and eloquently described the effect on those in rural and sparsely populated areas in his constituency.

My hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) championed the idea of the Tyne and Wear combined authority taking forward a quality contract system. She rightly made the point that constituencies that are urban and semi-rural and that have no light rail connections are particularly vulnerable to the problems in the current context. As she said, we want companies to get a reasonable return on their money, but what is actually delivered is often not reasonable. Excessive profits must be reinvested into the community. Her reference to the Competition Commission report reminded us of some of the issues at stake.

[Graham Stringer]

Does my hon. Friend accept that it is an indication of the exploitation of the travelling public that goes on outside the regulated system in London that the profits made by private bus companies in places such as Tyne and Wear, Greater Manchester and Merseyside are between 25% and 50% greater than for the same companies operating in London? That is indicative of a failed system that is exploiting the travelling public in the English regions.

[Mr Marsden]

My hon. Friend serves with great distinction on the Transport Committee. He highlights a key issue for us all to ponder. If things can be done in London, they should certainly be examined elsewhere, particularly in areas such as Greater Manchester—I speak as a native Mancunian—where the tradition of good, strong, integrated public transport is sometimes hobbled by practices he mentioned.

All regions have seen support for local services stretched as never before in recent memory, losing an average of 25% of bus funding since 2010. Yet buses remain the most frequently used mode of public transport. Their use is widespread and important outside of as well as in London and our major cities, where media coverage of transport issues is sometimes focused. They are vital in both urban and rural areas, and are a lifeline for groups such as the elderly and disabled people. They also offer opportunities for all passengers to expand their horizons and engage socially in local areas and further afield.

The previous Labour Government showed an unprecedented commitment to strengthening bus services throughout the country. In 1997, the overall level of Government subsidy for bus services—including public transport, the bus service operators grant and concessionary fares—stood at less than £1 million; by the current decade it had risen to more than £2.3 billion. The present Government did not inherit a situation in which buses were a second-class service with a disintegrating network and fleet of vehicles, but, sadly, their cuts to the local government grant and lack of forethought about their effect on local transport demonstrate that they have reverted to an isolated and siloed vision of what public transport can do, rather than seeing it as the environmentally friendly, efficient and inclusive driver of economic growth that it should be.

Campaigning groups such as the Campaign for Better Transport have done some excellent work, particularly in highlighting the value of supported bus services. Such routes are not believed by operators to be independently viable, but often serve the hardest to reach and most isolated communities. The CBT’s research, published earlier this year in the report “Buses in Crisis”, highlighted that in 2013-14 almost 50% of local authorities cut supported bus services, at a total loss of £17 million. Since 2010, more than £56 million has been cut from supported bus services, with many routes and services being cut completely. No wonder that in his foreword to the report the chief executive of the CBT, Stephen Joseph, highlighted the impact of those cuts on two particular groups:

“young people unable to access their place of education or training”

and

“older people who are left in isolation after their lifeline to the outside world has been cut.”

Supported services are particularly important for the elderly. The difficulty of accessing health services can mean that conditions go untreated and undiagnosed, or that the taxpayer ends up paying more for ambulance trips and unnecessary overnight hospital stays because of a lack of transport options. The difficulty of maintaining social links where public transport is poor reduces quality of life and can anger families, especially those in rural areas who cannot easily see their elderly relatives.

The local economy also suffers as shopping centres and services are made inaccessible. Age UK’s report, “Missed opportunities: the impact on older people of cuts to rural bus services”, brings into stark relief the many facets of isolation that the elderly can experience when services are cut; in some places a taxi to the theatre could cost 10% of their weekly pension. People with disabilities also rely on bus services and are hardest hit when support routes are closed, for many of the same reasons. I will come later to other approaches that can improve the services used by disabled people, but the fundamental point is that the service must be operating in the first place.

As we have heard, young people also suffer when services are cut: jobs and training in hard-to-reach areas can no longer be pursued. Young people are among the biggest users of bus services, as the National Union of Students has pointed out. More than 2 million young people come from low-income households, and 64% of jobseekers either have no access to a vehicle or cannot drive. The role that the bus can play is clear: a joined-up network allows aspirations to thrive and prevents young people from being unable to take up job opportunities. It also boosts their productivity, and it is estimated that £1 of public investment in buses can provide between £3 and £5-worth of wider benefits.

We all know from our experience in our constituencies that bus travel is key for young people. My hon. Friend the Member for Corby referred to his experience, and recently I have had a number of meetings with young people in which they have all said that the issue is not simply not being able to get about socially; bus services are a lifeline to their college, as well as to get to job interviews and eventually to take up work. It really is a key issue. My hon. Friend was right to highlight the inconsistency of requiring young people to stay in education until they are 18 when they do not have the wherewithal to do so.

The provision of transport in rural areas, which has already been touched on, can also become a matter of inequality. Recent research by the Centre for Social Justice showed that people who live in rural areas can spend between 20% and 30% more on transport than those in urban households. Such areas therefore have more to lose than most when support for local bus services is reduced. As a former shadow further education Minister, I know how crucial that can be for young people in rural areas who want to access college courses. Campuses in rural areas often require a five to 10 mile journey, as opposed to a one to two mile journey in urban areas.

We also have a right to expect quality provision from bus operators because public subsidy accounts for 45% of bus operators’ revenues. The comments of my hon. Friend the Member for Houghton and Sunderland South on the situation in Tyne and Wear are pertinent. Virtually all the major bus companies have pointed out that cuts at that level have inhibited their ability to provide services. The example of her county council is not isolated. There has been a 50% subsidy cut in Suffolk, a 40% subsidy cut in Hertfordshire and a 30% subsidy cut in Somerset. They are all Conservative-controlled authorities in which issues of social cohesion for the elderly and economic opportunity for the young have not been sufficient to retain the subsidies. Those authorities’ own Government have made their ability to do so even harder.

I commend colleagues who have stood up for their local services, and I commend my hon. Friends who have spoken today. My hon. Friend the Member for Halifax (Mrs Riordan) has been fighting for bus services in her constituency, and my right hon. Friend the Member for Knowsley (Mr Howarth) has been vocal about services in his area.

What other pressures do local authorities face, and what powers do they have to respond? The LGA has raised concerns that funding has been cut by £261 million and that often it cannot do much about it. Concessionary fares and supported services must work in tandem, rather than competing for an ever-reduced pool of money. People continue to receive the benefits of the bus pass, but we must ensure that its funding reflects the effects of social and independent living. We want actively to explore what more we can do to incentivise and extend bus support for young people so that we make a further impact to bridge the gap to jobs and skills and, incidentally, to make a real impact on economic growth.

Current contract arrangements give little power or incentive for local authorities to have mechanisms to maintain protected services, and the points raised by my hon. Friend the Member for Corby on quality control are highly relevant. We would increase the amount of money devolved to regional bodies, which would be a major driver of new initiatives and transport projects to improve the quality of services and the transport network for people across those regions.

We must also consider what we have to do to make access a reality for people with disabilities. In the House, we have raised the issues of bus driver training and audiovisual systems. They will not go away, particularly when loud voices from consumer and public organisations are saying that it is time that Ministers heard the clarion call to take a lead on access.

Government at all levels must never lose sight of the fact that bus services not simply are the preserve of bus operators but exist for their passengers. Public transport must never be relegated to the status of a second-class service. A well funded and prioritised bus service can be a key driver of economic growth. The Government need to be fully committed to those ideals to make them a reality, rather than sidelining millions of people to what my hon. Friend’s constituent eloquently characterised as curfew living.