Bus Franchising

Kieran Mullan Excerpts

Monday 9th September 2024 Commons Chamber

[Mr Speaker]

We come to the shadow Minister.

[Dr Kieran Mullan (Bexhill and Battle) (Con)]

I thank the Minister for his statement.

We on this side of the House are in full agreement that good local transport is something that everyone deserves access to, both for helping people to live their lives and for fulfilling the economic potential of all parts of the country. At the heart of our local transport services are buses. They are some of the most convenient, well-connected and accessible forms of public transport out there—crucially, not just in urban areas, but very often in under-connected rural areas. That is why, in government, we invested billions of pounds in the bus sector, including the vital support provided to maintain services during the pandemic. We rolled out thousands of new zero-emissions buses and introduced the “Get around for £2” scheme, saving millions of people money on their fares and helping to get passengers back on buses.

Those interventions worked. Bus passenger journeys in England increased by nearly a fifth in the year ending March 2023, and we welcome this Government’s desire to build on our progress in order to improve services further, to get more routes running at better frequency, and to make sure that as many people as possible have reliable services that get them where they need to go. I am genuinely interested in understanding how the Government feel that this set of measures will achieve that. We are worried about some of the significant risks, which the Government do not seem to have considered.

This legislation places greater responsibility in the hands of local authorities. We know that a number of local authorities face financial and organisational challenges, and although I do not doubt that there will be enthusiasm for making use of the new powers, running any form of public transport brings real challenges. Of course, as the Minister said in opposition, gaps in experience could be filled by support from the Department for Transport, but depending on the number of local authorities that choose to take up franchising, this could mean that significant central Government resources are required. Unless I have missed something, today’s announcement includes absolutely no funding to pay for increased capacity at the Department. What projections have the Government made of the costs, and how exactly do they expect them to be paid?

It is the same story with local government finances. Make no mistake about it: this is going to cost money. Many bus routes, especially rural services, are loss making, even before we account for the additional resources that local authorities will presumably need to operate them. In his statement, the Minister did not recognise the enormous challenges that have been created by changing travel patterns post covid. If this Government are committed to providing services at 1985 levels, as he seemed to imply, they will need to commit to enormous levels of subsidy.

I welcome the success stories in metropolitan areas that the Minister talked about, but such services operate in a fundamentally different space, because of the density of those areas’ populations. It means that if passenger numbers fall next year, the financial risk will be taken on not by a private company, but by the local council and, by definition, taxpayers. Again, given that there appears to be no funding attached to the policy, surely it can be funded only by increases to council tax or cuts to other local services.

It is the same story when it comes to responsibility for capital expenditure. Will this now be the responsibility of local authorities? How exactly are they expected to fund it? As we recently made clear when debating the Passenger Railway Services (Public Ownership) Bill, it might be the Labour party’s priority to undertake ideological reforms to bring the transport sector further into the control of the state, but passengers’ priorities are the price, performance and reliability of services, not who is running them. We want to hear how the reforms will make a difference to passengers’ journeys and their accessibility, frequency and cost, and how they will help to restore the number of rural services and make journeys cheaper for passengers—and not just through the generic pledges we have heard today, but through concrete commitments on which the public can hold the Government to account. The Minister made absolutely no commitment to increase levels of services or miles travelled as part of the Government’s “revolution”.

There are some simple things that the Government could do for passengers, such as extending our “Get around for £2” scheme, which has been hugely positive for passengers and for the viability of services up and down the country. I am aware that the Chancellor is not Labour Members’ favourite person at the moment, but I encourage them to make the case for the cost-of-living benefits of the £2 scheme, as well as for the benefits of the winter fuel payment, in any hurriedly organised meetings today and tomorrow.

The Government have got the wrong priorities yet again. At the end of the day, passengers care about the preservation of existing services, the extension of routes, improvements in frequency and reliability, and cost. We on this side of the House are all ears when it comes to what difference this policy will make for them and—not to be forgotten—who is going to pay for it.

[Simon Lightwood]

Modernising our transport infrastructure and delivering better buses are at the heart of our plan to kick-start economic growth in every part of the country to get our country moving. This statutory instrument is just the start of a package of measures; the buses Bill will deliver further measures on issues such as funding. Despite the challenging financial circumstances we find ourselves in—inherited from the previous Government—we are determined to deliver better bus services, growing passenger numbers and driving opportunity to underserved regions. All funding is rightly being considered as part of the spending review.

There is no one-size-fits-all approach for buses within local transport authorities. Franchising is just one way that this can be explored; there are also enhanced partnerships and municipal ownership. We firmly believe that our priorities to deliver better buses across the country are the right priorities, and we have the mandate from the British people following the general election to do just that.