Queen’s Speech

Lord Bradshaw Excerpts

Monday 17th May 2021 Lords Chamber

[Lord Bradshaw (LD) [V]]

My Lords, I intend to speak about buses. The Government’s recent proposal, Bus Back Better, is a welcome spotlight on an industry that has not been the subject of significant legislation since 1985. The proposals have been broadly applauded by the Campaign to Protect Rural England, the Women’s Institutes and the APPG representing county councils, all of which have been calling for action to halt the decline in bus services, particularly in rural areas. The expectations raised by the proposals are high. I received through my door on Saturday a brochure from the CPRE appealing for money to press the case for the 56% of small towns it investigated that are becoming transport deserts or are close to becoming so.

I want to examine how the Government are proposing to spend the money available—some £3 billion—and the likely outcomes. It is proposed that much of the money will be spent on purchasing new hydrogen or electric buses. A modern diesel bus built to Euro 6 standards costs the operator about £250,000. In terms of amenity and comfort, these will be very good and the emissions standards very high. An electric bus costs around £450,000 and a hydrogen bus £560,000. An operator buying one of these new buses is expected to pay the base cost of a new Euro 6 vehicle plus 25%, with the Government covering the balance of 75%.

That is not an attractive deal for the operator, who will lose the premium that he now receives for operating a low-carbon bus and the fuel duty rebate, which together account for 20p per kilometre. In Scotland there is provision to meet the cost of this ownership gap, and I urge the Minister to make inquiries north of the border because I am afraid there will not be any orders for new buses without some movement on the part of the Government. There will have to be some sort of green bus service operator grant. If the department’s object is to reduce immediately the amount of diesel oil being burned, a very modest infill of rail freight electrification would achieve that by removing a large number of HGVs from the road.

How much of the available money will be spent on new buses and how much on the ambitious programme of service improvements? Organisations such as the CPRE are anticipating hourly services from small towns, giving access to jobs, hospitals, shops, leisure facilities, education facilities and other amenities throughout the day. There is the question of timescales, with bus improvement plans beginning in October, when many newly elected councils will not meet to consider the matter until July. There are competition issues to be resolved, and the role of the traffic commissioners. Some highway works will be necessary, as well as some new bus priority measures.

Many local authorities are desperate to make the new arrangements work. There is much to do, and I ask that sufficient time is allowed for the House to examine these welcome proposals in detail.