Rural Bus Services

Debate between Pat Glass and Norman Baker

Tuesday 11th October 2011 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

I think the hon. Gentleman means three parties.

Mr Scott, it is good to see you in the Chair, given your transport expertise. We are delighted to have you here. I thank the hon. Member for Great Yarmouth (Brandon Lewis), my coalition colleague, for raising the issue of rural bus services and securing time to allow us to debate these important issues. There has been a very good turnout. I welcome that. It is helpful for Members of Parliament to make it clear that they do value bus services and, in particular, rural bus services. The tone of the debate has been positive and constructive. Hon. Members made a number of very good points, which I will try to respond to in the time available.

I know from my own constituency that buses are a lifeline for many people in rural areas, providing access to jobs, schools, health care and social activities. Good bus services contribute to both the Government’s key transport priorities: creating growth and cutting carbon. By providing an attractive alternative to the car, we can not only cut carbon but, at the same time, unclog the congestion that can choke off local economies. That applies particularly to towns.

We are committed to reducing the budget deficit, as has been said and as hon. Members have accepted across the Chamber today. Every sector has to play its part. The shadow Minister, the hon. Member for Barrow and Furness (John Woodcock), will remember that the Labour party was committed to £44 billion of cuts as well. We must recognise that every sector has to play its part. However, we have a duty to pay particular attention to those who are most reliant on buses, such as the people referred to by the hon. Member for South West Durham—

[Pat Glass]

North West Durham.

[Norman Baker]

North West Durham. Well, I am sure that there are some people in south-west Durham with similar issues.

Central to all this is our commitment, as part of the comprehensive spending review, to continue our financial subsidy of bus operators. Bus service operators grant remains untouched for this financial year. Notice of 18 months or thereabouts was given of the changes. The 20% savings are to be introduced from next April. That 20% reduction represents a good deal for bus operators and passengers when compared with reductions to budgets elsewhere. Although it will inevitably have some effect on fares and services, I have been assured by operators that that will be only at the margins. Indeed, after the spending review decision was announced, the industry said that it felt able to absorb the reduction in bus service operators grant without raising fares or cutting services.

[Pat Glass]

With respect, we are not talking about the change to bus service operators grant. That is yet to come. We are talking about the impact of the cuts to local authority budgets. The situation is bad enough, but next year it will get far worse with the change to bus service operators grant.

[Norman Baker]

If I am allowed to make some progress, I will of course address that point. I am trying to structure my response. The hon. Member for Great Yarmouth, whose debate it is, referred to these issues: bus service operators grant, local tendered services, support from local authorities and concessionary fares. I will deal with each of those. The point that I am making on the first one is that it is not an issue that should concern hon. Members, because the bus operators themselves have said that the reduction can be absorbed. Therefore, BSOG is not a problem in terms of the services provided.