National Bus Strategy: England

Lord Rosser Excerpts

Thursday 18th March 2021 Lords Chamber

[Lord Rosser (Lab) [V]]

I first express our thanks to all those involved in the bus industry for the invaluable work that they have always done and continue to do, not least during Covid-19, to provide a vital service to the nation which brings enormous social and economic benefits that extend way beyond crude calculations of whether a bus service is “viable” based on revenue from fares compared with cost incurred. This Statement appears to recognise that point when it says that

“buses are not just an industry but almost a social service.”

I hope that this does not prove to be just a gimmicky phrase.

Over the last decade, we have seen the loss of 134 million bus miles, and some 3,000 local authority-supported bus services have been cut over the same period as a result of government policies that have led to ever-increasing fares—way above inflation outside London—and cuts in local government finances. Bus coverage in Britain is now the lowest it has been in 30 years, despite a rising population. Office for National Statistics figures appear to show that, in January, bus fares were up by 21% on the previous year—the highest yearly increase since figures began. I invite the Government to comment on that. If that is the case, the increase in fares has been some 70% over the last decade.

The Statement says that there will be £3 billion of government investment in the industry to deliver what is said in the Statement about passengers wanting

“more routes and services, easier information and greener buses … simple cheap flat fares”

and

“the kind of frequency that means you do not even have to look at the timetable before you get on the bus—and more services in the evening and at weekends.”

How much does that £3 billion amount to per year, and how did the Government come to the conclusion that £3 billion was the required figure? How many of the 134 million lost bus miles will be restored as a result of that investment?

The Secretary of State said in the Commons on Monday:

“We … would not be putting £3 billion in if we did not expect, as the bus strategy says, to make buses more affordable. It is central to our vision that they are not just practical, but the affordable means of transport.”—[Official Report, Commons, 15/3/21; col. 52.]


Do the Government regard bus fares outside London as affordable at present? If not, what does making “buses more affordable” really mean in terms of reducing existing fares?

The Statement says that, by the end of June, all local authorities, with the bus operators’ support, will have to commit either to a statutory enhanced partnership with their bus operators or to franchising arrangements along the lines of those that apply in London. Local authorities, in collaboration with operators, will then produce bus service improvement plans by the end of October this year. What happens, though, if there is a difference of view between the local authority and the bus operators, since future government financial support would depend on there being no difference of view on whether there should be enhanced partnership or franchising arrangements? The Secretary of State appears to be keeping the power to himself to decide who has the capability and capacity to run franchising, which does not sound much like devolving responsibility, and rather more like continuing with tight central control. If the local authority wants franchising arrangements but the bus operators do not agree, against what criteria will the Secretary of State decide whether the local authority can or cannot run franchising?

The Statement also says that

“we will work with councils to introduce bus priority schemes this year, and we will roll out marketing to attract millions of new passengers to the network—people who have never used buses before.”—[Official Report, Commons, 15/3/21; col. 49.]

How much will the Government invest in this marketing, and what form will it take? How many millions of new passengers will have to be attracted to the network—

“people who have never used buses before”—

for the Government to deem this marketing to have achieved its objective?

The Statement refers to passengers wanting greener buses. The Government promised 4,000 zero-emission buses over a year ago, but very little appears to have happened yet. There are over 30,000 buses in England alone. Under this new bus strategy, what percentage of the bus fleet will be zero-emission in two, five and eight years’ time, and how many new green jobs will be created in the bus and coach sector? We have already seen more than a thousand jobs lost in the bus and coach manufacturing industry since the pandemic started.

At the moment, this Government’s bus legacy is ever higher fares, ever fewer passengers, ever fewer bus services and little or no progress on zero-emission vehicles. If the new strategy delivers a major reversal of that policy, that will be very much welcomed, certainly when it happens. The Government’s responses to the issues and questions I have raised will give an indication of whether the new strategy is largely words, or whether it reflects a clearly thought through delivery plan with clear, specific and ambitious timetabled targets and the resources already committed to enable them to be delivered.

[Baroness Randerson (LD) [V]]

My Lords, this Statement is obviously welcome because it is so long overdue. We have been expecting it since 2019, and in the meantime the bus crisis has worsened in ways that we could not have imagined. At this point, I must specifically thank all who work in the bus industry and, in particular, remember those who have died from Covid during the last year. They have all undertaken a difficult and unexpectedly dangerous job. Because of the virus, the Government have spent the last year discouraging us from using buses, and it will be a hard task to get us back into the habit.

We welcome this strategy because it inherently accepts that the deregulation of the bus services outside London in the 1980s was a failure. It is a pity that it has taken so long to recognise this.

For the sake of the climate, to reduce congestion, and to reduce harmful emissions and their effects on our health, I welcome the intention to move to zero-emission buses. It is just a pity that it comes a week after the Budget which froze fuel duty and proposed reductions in APD, neither of which suggest a strategic approach to our climate change commitments.

The Government apparently do not have a firm date in mind for an end to sales of diesel buses. The Campaign for Better Transport suggests that 2025 is a reasonable and feasible date. Can the Minister explain how long they expect their consultation on this to run? Every week of consultation eats into the preparation time for the industry.

Encouraging British-built zero-emission buses is an excellent scheme. The Government announced in 2020 that they would invest £120 million in 4,000 zero-emission buses. More than a year on from that announcement, we still see nothing productive from this promise and await an announcement in the spring. The Government have already lost a lot of valuable time on this and the Minister herself recognises that only 2% of our bus fleet is electric. For a more just and equal society, I welcome the commitments to cheaper fares and more regular and frequent services. What the strategy lacks is any detail on how these cheaper fares will be paid for.

Fares are the result of a combination of factors that include several separate funding streams from the Government. They are hopelessly outdated and none of those funding streams incentivise greener vehicles or relate to the number of miles travelled. The emergency funding for bus services increased the confusion, with funding based on historical concessionary fare payments for passengers who were not actually travelling. I can see no detail on this but would welcome any proposals for reform that the Minister can tell us about. For certain, we will not see a significant step towards improvements in fares, such as integrated ticketing, simply by relying on current funding streams.

Most bus companies do not make excess profits. Indeed, in rural areas many have a problem just surviving. Local authorities already point to a £700 million funding gap on concessionary fares and the Government must deal with this long-standing underfunding before they can start to expect a commitment from local authorities for improvements to services. So this Statement needed to be ambitious, and indeed it is, but it lacks a level of detail and realistic steps towards targets that are essential if it is to be useful. For many local councils, the level of bus services is now so low that recovery will require a total revolution in funding. The £3 billion sounds a lot, but as there are 4.2 billion bus journeys a year in this country, I think that sets the scale of things in perspective.

This strategy is really just a skeleton. It has taken the Government two years to produce and lacks so much necessary detail. Therefore, it is way out of kilter to expect local authorities to sign up to either enhanced partnerships or franchising by June—that is less than three months for a decision requiring major financial and legal decisions. Moreover, local authorities are expected to produce bus improvement strategies by October. Many local authorities no longer have the expertise among their staff to responsibly make those decisions—but, if they do not opt for one or the other, they will not get further funding. That is a decision with a gun to their heads. So my question is, will they have the scope to change their minds after they initially opt for one or other route?

Franchising is a complex legal process. The Bus Services Act 2017 restricted franchising to authorities with elected mayors. I never understood why, and strenuous attempts were made to try to broaden this, but that is the law. Can the Minister explain if and when we can expect fresh legislation to allow a broader sweep of local authorities to franchise bus services? Do the Government now accept that some of the best services in Britain are council run and owned, and that the restriction on councils setting up and owning their own services needs to be lifted?

The Statement also refers to very welcome improvements to disabled access, and I want to press the Minister on this. The 2017 Act improved and clarified access priorities. There were further improvements proposed, which the Government did not accept at that time. Can the Minister give us details of what she plans and whether we can expect legislation and when? I would also welcome more details on government proposals for encouraging on-demand services. I agree that such innovation will be important for modernisation. The Minister referred to 17 trial areas. I am very keen to know how these areas will be chosen—or have they been chosen already? What are the criteria? Do they include average income levels, car ownership and so on? Was it a bidding process? Some of the Government’s ambitions rely on new infrastructure, such as bus lanes. Does the £3 billion cover that as well as buses themselves?

Finally, you cannot buy a painting-by-numbers kit and expect to produce a Rembrandt. This Statement is the bare outline of a vision for the future, and there is nothing wrong with that vision, but the Government seem to be leaving local authorities and bus companies to fill in the picture without making it clear where the resources will come from.