Bus Services (No. 2) Bill [ Lords ] (Third sitting)

Paul Kohler Excerpts

Committee stage
Thursday 26th June 2025 Public Bill Committees

[The Chair]

As amendments 49 and 50 are almost identical to the previous amendments, my discretion is not to proceed to a vote.

Amendments made: 4, in clause 7, page 4, line 10, leave out “but” and insert “and”.

This amendment and Amendment 5 widen the category of services that are capable of being cross-boundary services.

Amendment 5, in clause 7, page 4, line 11, leave out

“begins or ends, or begins and ends,”

and insert

“has one or more stopping places”.—(Simon Lightwood.)

This amendment and Amendment 4 widen the category of services that are capable of being cross-boundary services.

Clause 7, as amended, ordered to stand part of the Bill.

Clauses 8 and 9 ordered to stand part of the Bill.

Clause 10

Report on assessment of proposed scheme

[Mr Paul Kohler (Wimbledon) (LD)]

I beg to move amendment 57, in clause 10, page 6, line 6, at end insert—

“(A1) Section 123B of the Transport Act 2000 (assessment of proposed scheme) is amended in accordance with subsections (A2) to (A4).

(A2) In subsection (2)(a) omit ‘and’;

(A3) In subsection (2)(b), after ‘action’ insert—

‘, and

(c) assess the adequacy of central government funding to support the provision of bus services under the scheme.

(2A) The assessment under subsection (2)(c) must include—

(a) an evaluation of whether available funding is sufficient to meet the projected costs of the franchising scheme, and

(b) an analysis of the funding required to maintain or improve service levels across all affected communities.’

(A4) After subsection (6) insert—

‘(6A) An assessment under this section must be made publicly available and submitted to the Secretary of State.’”

This amendment to the Transport Act 2000 would require the Secretary of State to assess the adequacy of central government funding to support the provisions of bus services under franchised schemes.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 59, in clause 10, page 6, line 37, at end insert—

“(11) The Secretary of State must, no later than three months after the day on which this section comes into force, lay before Parliament regulations specifying the qualifications and criteria required for a person to be considered an ‘approved person’ for the purposes of section 123D of the Transport Act 2000.

(12) A statutory instrument containing regulations under subsection (11) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”

This is a probing amendment to inquire whether the Secretary of State intends to issue the criteria for the “approved persons” role in the near future. A report from an approved person must occur before a franchised scheme can go ahead.

Clause stand part.

Clause 11 stand part.

Government new clause 4—Miscellaneous amendments.

New clause 15—Franchising scheme: restriction—

“Where a franchising authority, or two or more franchising authorities acting jointly, prepare an assessment of a proposed franchising scheme under section 123B of the Transport Act 2000 but fail, for any reason, to make and publish a scheme under section 123H of the Transport Act 2000, they must not initiate another franchising assessment for the same area, or a substantially similar area, for a period of five years from the date on which the assessment was prepared.”

This new clause prevents franchising authorities from repeatedly conducting franchising assessments for the same or substantially similar areas within a five-year period if they do not proceed to make and publish a franchising scheme.

New clause 36—Franchising assessments to consider integration of public transport—

“In section 123B of the Transport Act 2000 (assessment of proposed scheme), at the end of subsection (3) insert—

‘(g) how the proposed scheme will allow for or facilitate integration across modes of public transport.’”

This new clause would require an assessment of a franchising scheme to include an assessment of the impact on integrated transport.

[Mr Kohler]

It is a pleasure to serve under your chairship, Sir Desmond. While I am broadly supportive of much of the Bill, we must not lose sight of the fundamental challenge—the lack of sufficient funding and expertise in local authorities to fully take advantage of the powers that it provides.

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[Siân Berry]

I do not; I just hope that the Government realise what I was trying to do. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 13 ordered to stand part of the Bill.

Clause 14

Socially necessary local services

[Mr Kohler]

I beg to move amendment 66, in clause 14, page 9, line 23, at end insert—

“(4B) When the list of socially necessary local services required by subsection (3)(ba) is reviewed or amended, the relevant authority or authorities must—

(a) assess the overall adequacy of the existing network of local services in their area or combined area in enabling passengers to access essential health settings, education, goods and services, economic opportunities, and social activities;

(b) identify any gaps in the provision of socially necessary local services across the network and where existing services are insufficient, absent or cause a material adverse effect on passengers' ability to access those goods, services, opportunities, or activities;

(c) describe what further action the authority or authorities intend to take to address any identified gaps including, where appropriate, proposals for new or altered services, with timelines for implementation, and consideration of funding or alternative delivery models.

(4C) The authority or authorities must publish any assessment and proposals made under subsection (4B) after consulting—

(a) persons operating local services in the area or combined area;

(b) users of local services;

(c) NHS providers;

(d) education providers;

(e) local employers and businesses;

(f) people with disabilities; and

(g) any other persons whom the authority or authorities consider it appropriate to consult.”

This amendment would insert into the Transport Act 2000 a requirement for local transport authorities to review the adequacy of local services when considering changes to the list of socially necessary local services.

[The Chair]

With this it will be convenient to discuss amendment 64, in clause 14, page 10, line 34, at end insert—

“(7) The Secretary of State must, at intervals not exceeding six months, lay before Parliament a statement setting out—

(a) the number of socially necessary local services in England;

(b) the number of socially necessary routes that have their whole service cancelled;

(c) the average frequency of buses on socially necessary local services;

(d) the average number of days a week that socially necessary local services are in operation;

(e) total ridership on socially necessary local services; and

(f) the steps the Government is taking to improve the provision and reliability of socially necessary local services, their frequency, and bus ridership.

(8) For the purposes of subsection (7), ‘socially necessary local service’ has the same meaning as in section 138A of the Transport Act 2000.

(9) Each statement laid under this section must include data covering the six-month period immediately preceding the date of the statement.”

This amendment would require the Secretary of State to provide Parliament with a bi-annual statements including information of socially necessary local bus services and steps the Government plans to take to address any identified issues.

[Mr Kohler]

Clause 14 is a vital provision in the Bill that seeks to strengthen the provision and protection of routes that are deemed socially necessary. I will begin by addressing the amendments tabled by the Liberal Democrats, before turning to others.

Although I fully support the principle behind clause 14, there are several areas where it can and must be strengthened to ensure that it functions as a genuinely effective tool for safeguarding essential bus services. Under the clause, the Transport Act is amended to require that local transport authorities maintain a list of socially necessary routes and review it from time to time. Crucially, there is no detail on how that review should be conducted. That lack of clarity risks rendering the duty vague and unenforceable.

Amendment 66 seeks to address that gap. It sets out how the review process should work, requiring that gaps in network coverage be identified and that changes to improve the network are actively considered. Importantly, it would also ensure that reviews and amendments take place in consultation with relevant stakeholders. That would embed transparency and accountability into the process.

Amendment 64 would require a biannual review by the Secretary of State of the level and condition of socially necessary services across the country. Given that local authorities will already be maintaining those lists, it is not an unreasonable burden. Rather, it would create national oversight and parliamentary scrutiny—something currently missing from the system. Having consistent data on ridership, frequency and cancellations would greatly improve transparency, inform better decision making, and keep socially necessary services at the forefront of Government planning and funding.

Amendment 39, tabled by the hon. Member for Brighton Pavilion on behalf of the Green party—

[The Chair]

Order. We are debating only amendments 66 and 64.

[Mr Kohler]

Okay—sorry.

[Steff Aquarone]

I rise to speak to clause 14 and amendments 66 and 64, tabled by me and my hon. Friend the Member for Wimbledon.

I warmly welcome the clause’s protection of socially necessary services. I have spoken before about how important local bus services are for our rural areas, and I want to bring that to life because the term “socially necessary” does not do justice to the significance of those services. For many, a more accurate term would be “lifeline” services. They are absolutely vital for many small villages, and they are often far from profitable. Although they may not bring a grand economic boost to the operator or local authority, they bring a huge social benefit to the communities that they serve.

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[Simon Lightwood]

I thank the hon. Members for Wimbledon, for North Norfolk and for Chesham and Amersham (Sarah Green) for tabling a series of amendments to the clause. Amendment 66 would ensure that local transport authorities review their current local bus network to identify any gaps. I agree with hon. Members that it is important for local transport authorities to understand and know their networks. However, the desired effect of the amendment is already covered by the Transport Act 2000, which places a requirement on an authority to meet the needs of people living or working in their area. The local transport plan, which must be prepared by a local transport authority, is an important document that establishes the transport needs of local communities. Indeed, the existing measures in the Bill go even further than the 2000 Act by ensuring that members of the enhanced partnership work together to identify key socially necessary services, and to develop a robust plan in case any changes are proposed to them.

I turn to amendment 64. The Department already publishes large amounts of bus data through both the Bus Open Data Service and bus statistics on gov.uk. The Bill provides for even more data collection under clause 24, which specifically ensures that data collected by the traffic commissioner is shared with the Secretary of State. I therefore believe that the amendment is unnecessary. We already deliver a large amount of information to the public that can help them to understand all services operating in their area—not just socially necessary services—and may include many of the details listed in the amendment.

[Mr Kohler]

I would like to press amendment 66.

Question put, That the amendment be made.

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[Joe Robertson]

It is a pleasure to serve under your chairmanship, Sir Desmond. I was planning to say a few words about amendment 39, but the shadow Minister has really said it: it not necessary to include healthcare services, schools and other educational institutes in the definition. Of course, I agree with the hon. Member for Brighton Pavilion that those things are important. I can think of dozens of important and socially necessary places where buses might go, but I would not propose to add them all to clause 14(2)(c), not least because when attempting to make an exhaustive list, it is always possible to leave things out, and there is great scope for argument over issues on the periphery that some people think are important and others do not.

The measure’s wording is broad. A “social necessary local service” is defined as one that allows passengers to access: “essential goods and services”, which is very wide; “economic opportunities (including employment)”, which is very wide; or “social activities”, which is also very wide. Plainly, healthcare services, schools and other educational institutes fall within those definitions, so the amendment is unnecessary. However, I welcome the hon. Lady’s highlighting those things, because healthcare and schools plainly rank very highly.

[Mr Kohler]

The Liberal Democrats strongly support amendment 39, which was tabled by the hon. Member for Brighton Pavilion. As has been said, it is remarkably similar to, if not the same as, an amendment that we tabled in the House of Lords. It rightly proposes to expand the definition of “socially necessary local service” to include routes that serve healthcare facilities. I recognise the argument that the existing definition already covers them, but we think it is important to explicitly include hospitals, GPs and clinics. Accessing healthcare is a social necessity that should be explicitly recognised in law.

The same is true of education. From conversations with my hon. Friends the Members for Westmorland and Lonsdale (Tim Farron), for Esher and Walton (Monica Harding) and for North East Hampshire (Alex Brewer), to name a few, I know that there are growing concerns about school and college bus routes being cut, leaving students unable to travel independently to their places of learning.

The Government may argue that such services are already included under the definition but, if that is the case, why not make that explicit? Clarifying it in statute would only strengthen the Bill and provide clearer guidance for local authorities.

[Simon Lightwood]

Amendment 39 is not necessary as this issue has already been addressed during debates on the Bill in the other place. At the time, my noble Friend the Minister for Rail made a statement on the Floor of the House to the effect that the definition of a socially necessary local service encapsulates access to healthcare and schools as “essential goods and services”. I hope that that reassures the hon. Member for Brighton Pavilion about the Government’s intention. That being said, the Government will produce official guidance for local authorities on the issue of socially necessary local services. That guidance will refer to healthcare services and educational institutions as constituting “essential goods and services”.

Amendment 38 would expand the definition of socially necessary local services to include services that have been abolished in the past 15 years. In addressing it, we should consider the practical issues. A service that has been cancelled in the past 15 years may no longer meet the current needs of the community, which change over time. Furthermore, it is possible that previous services may have been folded into newer and more relevant bus routes. For those reasons, the amendment might not yield the expected beneficial outcomes.

That is by no means a prohibition or limitation on the powers of local transport authorities, however. As local transport authorities continually evaluate the needs of their communities, they still retain the power to consider implementing services along former routes, if they believe that doing so would address the needs of their communities. The amendment is therefore not necessary, so I ask the hon. Member for Brighton Pavilion not to press it.

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[Siân Berry]

I do not. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Mr Kohler]

I beg to move amendment 54, in clause 14, page 10, line 26, at end insert—

“(4A) Where a socially necessary route has been identified in accordance with section 138A(15) of the Transport Act 2000, and no alternative operator has implemented the service within a period of six months, the relevant local authority must take reasonable steps to implement a service on the socially necessary route as far as is reasonably practicable.

(4B) Where a local authority has established a socially necessary service in the absence of alternative operators, the local authority must publish a report on the establishment and operability of the service within six months, which should include, but not be limited to—

(a) the scope and nature of the service;

(b) the estimated operating costs of the service and any identified funding gaps;

(c) the impact of the service on local accessibility and transport needs;

(d) a timeline for the operation of the service;

(e) where the local authority is unable to meet the financial burdens of operating the service within six months of establishing that service, a statement specifying the extent of the financial shortfall.

(4C) Where a local authority makes a statement under subsection (4B)(e), the new burdens doctrine applies to the provisions of this section and the Secretary of State must consider providing appropriate financial support to the local authority to ensure the service can be delivered.

(4D) Within six months of the passing of the Bus Services Act 2025, the Secretary of State must publish guidance on what funds will be available for the purposes of subsection (4C).

(4E) A service established under these provisions is a local service operated by a local government bus company as defined by section 22(5).”

This amendment would place a duty on a relevant local authority to implement a socially necessary service should alternative operators fail to do so, with provisions for financial support if needed and the possibility of transferring responsibility to an alternative operator once the service is established.

[The Chair]

With this it will be convenient to discuss amendment 74, in clause 14, page 10, line 34, at end insert—

“(7) The Secretary of State must, within 12 months of the passing of this Act, lay before both Houses of Parliament proposals for a scheme that would guarantee a service for socially necessary services where—

(a) no operator has implemented the service for a period of six months, and

(b) the local transport authority is unable to run the service.

(8) The Secretary of State must, when publishing their proposals for a scheme under this section, also provide guidance on how the scheme would be funded, including the criteria which would be used for assessing qualification for the scheme.

(9) Within a month of producing the proposals, the Secretary of State must ensure that time is made available in both Houses of Parliament for a substantive debate on the proposals.”

This amendment would require the Secretary of State to bring forward proposals for a scheme that would guarantee services for routes identified as socially necessary where no operator has implemented the service and the local transport authority does not have the capacity to do so.

[Mr Kohler]

Amendments 54 and 74 would establish a real safety net for socially necessary routes. Amendment 54 would place a duty on local authorities to step in to deliver a service when no commercial operator will do so, while placing a reciprocal duty on the Government to provide financial support to enable it. Amendment 74 would complement that by requiring the Secretary of State to create a formal funding mechanism for such services. The mechanism would include clear eligibility criteria, ensuring that local authorities could not designate routes as socially necessary arbitrarily, but must demonstrate clear social need. Together, the amendments would ensure that essential routes do not disappear due to market failure. They offer a practical, balanced solution to a growing problem, and I urge the Committee to support them. If we believe that these routes are socially necessary, we must find a mechanism to ensure that they are provided.

[Jerome Mayhew]

The Liberal Democrats’ amendment 54 would place a duty on local transport authorities to identify and then satisfy the need for all—and I stress “all”—socially necessary services, irrespective of supply, under an enhanced partnership. The amendment does not explain how the services would be supplied by the local authority—presumably, there would be a tender process—but it would require the authority to produce a report within six months. That report would identify the need, estimate the costs of provision and associated funding gaps, estimate the impact of a new service

“on local accessibility and transport needs”,

provide

“a timeline for the operation of the service”,

and specify local funding shortfalls. That measure, if adopted, would be a truly revolutionary departure for the identification of local need and subsequent funding, because it would hand demand assessment to the local authority, but the cost of provision to the Secretary of State. What could possibly go wrong? I genuinely look forward to the Minister supporting the amendment and explaining how he will fund that.

The Liberal Democrats’ amendment 74 would require the Secretary of State to advance proposals within 12 months to

“guarantee a service for socially necessary services”,

where that service has been absent for six months and

“the local transport authority is unable to run the service.”

That is a second extraordinary proposal, because it would again place identification of need—according to the highly subjective definition of social necessity—in the hands of the local authority, but would give the Secretary of State a legal duty to supply that assessed need. It envisages the Department for Transport directly running individual routes that have escaped the design of the franchise network or the enhanced partnerships. Presumably, since the Department for Transport has to supply for that need, it will be liable for procuring, right across the country, individual routes that are not part of a wider contractual arrangement. There we have it: the Department of Transport directly running individual routes, spread across the country, independent of wider bus provision. It sounds to me like a recipe for disaster.

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[Simon Lightwood]

I think it is sad that the hon. Gentleman does not share my confidence in local areas being able to shape their services.

I now turn to amendment 74, which is the final non-Government amendment tabled to clause 14. It seeks to ensure that there is a Government-backed scheme that will guarantee that all socially necessary local services continue to operate. As I am sure I have mentioned before, this Government have reaffirmed our commitment to bus services in the recent spending review by confirming around £900 million each year from 2026-27 to maintain and improve vital bus services. Allocations for that fund will be made through the bus funding formula, which already takes account of local need. The Department is also committed to review the current formula and ensure that it is allocated as fairly as possible. That will take place in due course.

[Mr Kohler]

Is the Minister confident that that money is sufficient to protect socially necessary services?