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

Paul Kohler Excerpts

Committee stage
Tuesday 1st July 2025 Public Bill Committees

[Amanda Hack (North West Leicestershire) (Lab)]

It is a pleasure to serve under your chairship, Dame Siobhain. Before I came to this place, I sat on the highways and transport scrutiny committee at Leicestershire county council, so I have spent a lot of my professional life talking about buses. As is not out of the ordinary for someone living in a rural or semi-rural constituency, however, I have also spent a lot of my personal life talking about them, as cuts and broader threats to our services are often the subject of conversation around the dinner table.

We all have residents such as those my hon. Friend the Member for Middlesbrough South and East Cleveland spoke about in our previous sitting. For example, my constituent, Jacky, fought hard to reinstate the bus service in Whitwick in my constituency, and won, ensuring that people can get to the local doctor and pharmacy. That is a socially critical service. A few years ago, the service between Coalville in my constituency and Hinckley in the neighbouring constituency was withdrawn at short notice in the middle of an academic term. North west Leicestershire and Hinckley both have further education colleges, and that essential link between the two was withdrawn in the middle of people’s courses. If the local authority had responded to campaigners then, it would have realised that the bus route between those two urban parts of Leicestershire was a socially necessary service.

In big cities, cutting one service leaves a dent, but in rural areas such as mine, it leaves a crater—and craters have been appearing all over my constituency. Bus services were cut by 62% under the previous Government. What bus providers and councils see as cutting costs, we see as cutting lifelines to education, jobs and healthcare—cutting connections with our communities. Members can imagine my constituents’ frustration when they heard a few weeks ago that notice had been served on a route between Ashby and Loughborough. The local authority has found an alternative to protect the service, but the timings are such that students now have to catch their bus even earlier to get to college.

Bus services are not just about transport; they are about opportunity, inclusion and dignity. When a young person in Measham cannot reach their college in Loughborough, or an elderly resident of Ibstock cannot get to their medical appointment, that is not an inconvenience but an erosion of their independence. We cannot afford to keep asking our communities to do more with less. That is why I welcome the Bill’s ambition. Finally, we have committed the resources that are needed to protect socially necessary services in my community and many others.

[Mr Paul Kohler (Wimbledon) (LD)]

Clause 14 is so important, because it is about socially necessary routes—those that are critical to the community. It explicitly includes employment and, as the Minister conceded last week, also catches things such as hospital appointments, GP appointments and education.

Throughout the Committee stage, the Minister has hidden behind localism. Now, I am a Liberal, so subsidiarity is part of my DNA; I believe in devolving power, but national Government must not wash their hands of their responsibilities. It is reminiscent of the old Conservative trick from the Thatcher era, of Government distancing themselves from their responsibilities. Funding is crucial, but as we heard in the debate last week on amendment 54, the Minister says it is not for Government to decide what to do with it. They have given a bit of money, and now it will be up to local authorities.

The Minister even quoted other Tory lines about how there is no “magic money tree”, and I agree—there is not. So we need growth. We do not get growth by wishing on a star, taxing jobs by increasing employer’s national insurance contributions, or tying ourselves in knots with red lines over Europe rather than meaningfully re-engaging with the EU customs union. That is the way to grow the economy; that is the way we pay for these things. The Government cannot talk about growth, do nothing about it, and say to local authorities, “We have given you almost a billion pounds, and you can now go and sort out buses,” because local authorities do not have the finances.

I am straying from the Bill. I have thus far referenced the omissions from the Bill, such as money. By inserting subsections (5) and (6), the House of Lords sought to focus attention on the Government’s commissions—namely, the end of the £2 fare cap, and the disastrous effect of hiking employer’s NI costs on the provision of special educational needs and disabilities bus transport. The Government’s decision to table an amendment removing those subsections is plainly a mistake, one that threatens to undo the constructive and necessary work undertaken in the Lords. The provisions were added to ensure that Ministers are held accountable for the consequences of their decisions—specifically, the rise in national insurance contributions and the short-sighted decision to increase the cap on bus fares.

As the National Audit Office made clear in its report published last Friday, bus services are lifelines, not luxuries. They are essential for the young, for older people, for households without a car, and for those on the lowest incomes. The Government’s decision to scrap the £2 fare cap is not just wrong, but an outrage. It is a direct hit to the most vulnerable. The NAO report revealed that the lowest-income households—those in the bottom 20%—take more bus journeys on average than any other income group, at 42 journeys per household per year. Those are essential journeys to work, school, the shops or the doctor. Removing the fare cap would mean those people—the poorest in our society—paying more to do the basics of daily life. Subsection (5) rightly sought to introduce a review to assess the impact of increasing the fare cap on people’s ability to access socially necessary routes. Scrapping the review removes transparency, accountability and the Government’s responsibility to understand how their decisions impact real lives.

The same principle applies to subsection (6), which calls for an assessment of the impact of changes to national insurance on SEND transport. Transport for children and young people with special educational needs and disabilities is not a side issue; it is central to an inclusive, accessible education system. Without that form of transport, many children cannot get to school. Increasing employer’s NI contributions risks undermining the viability of the services, as the hon. Member for Broadland and Fakenham made clear last week. The operators who run them are under increasing financial pressure. Without proper assessment and oversight, we risk sleepwalking into a situation where routes are cut, service levels fall, and SEND pupils are left without reliable transport. That would be an unforgivable failure of not just policy, but basic fairness.

Including a requirement to review the impact does not bind the Government’s hands; it simply asks them to look at the evidence, consider the consequences of their actions, and take responsible steps to mitigate harm where needed. We must protect these services for their users and uphold the principle that no one should be left behind due to financial pressures beyond their control. I urge the Government to reconsider and not shy away from scrutiny. They should own their decisions and be prepared to measure their impact. That is what responsible government demands.

[Josh Newbury (Cannock Chase) (Lab)]

It is a pleasure to make my first speech in Committee with you in the Chair, Dame Siobhain, particularly on a matter as important to the residents of towns and villages in Cannock Chase, which I represent, as socially necessary local services.

When I first read the Bill, clause 14 was one of the measures that I was most delighted to see, along with the extension of the option of franchising to non-mayoral areas, such as mine in Staffordshire, and the scrapping of the ideological ban on council-owned bus companies, which could be an important part of the picture when restoring routes in areas like mine. I apologise to the Committee for not being able to attend its first sitting, when rural bus services were discussed.

The reality for many rural communities including some of my villages, which face reductions in services or being completely cut off, is that they mourn the loss of bus routes because they are now unable to take the bus to access vital facilities and services. Residents of the village of Slitting Mill, just outside Rugeley, have no bus service at all. When I go door-knocking there, I always hear from residents about the opportunities and freedoms that they have lost as a result. One resident told me, almost wistfully, as if she were speaking of a bygone age, of when she used to be able to catch a direct bus from her little village to the centre of Wolverhampton, where she worked. She told me that she does not blame young people for moving out of the village because of that lack of connectivity, or for not returning if they want to start a family. If someone in Slitting Mill does not have a car, their prospects for employment and training are very limited.

In my home village of Norton Canes, residents in the most deprived part of our community, on and around the Norton East Road, have been cut off for many years because the No. 3 bus skirts around the bottom of the road, and the No. 60 around the top. Although the walk of 10-ish minutes is no bother for residents without mobility issues, many of the residents who made best use of the services that went down Norton East Road are older. Many have told me that they do not even bother to catch the bus now. That is just one example of how shrinking services are exacerbating the decline of ridership.

Many residents use the bus to get to their GP appointments, and to scans, tests and secondary care services at Cannock Chase hospital. I am sure that, like me, other hon. Members have heard from constituents who often have to spend huge chunks of their income on taxis—accessible taxis are like hen’s teeth in my neck of the woods—or have to rely on relatives to drive them. Such relatives are hard to come by during working hours, but that is when most health services are open. Had clause 14 been in place when the withdrawal of services from Norton East Road was proposed, we would have had some back-up in opposing that on the grounds of its impact.

I am sure that we have all heard accounts of children and young people not being able to get to school or enjoy social time with their friends because of a lack of bus services, especially in rural and suburban areas. That restricts the horizons of the next generation. Such matters should be, but often are not, taken into account when proposals are made or services are slated for withdrawal.

Those three examples from my constituency show what the Bill means to communities such as mine, which have been let down by the broken bus system for far too long. Buses should work for people and communities, first and foremost. Clause 14 puts that aspiration at the heart of the Bill; I hope it will stand part.

--- Later in debate ---

[Jerome Mayhew]

Committee members will be pleased to hear that I will whip through the clauses quite quickly. Clause 15 amends the Transport Act 2000 to widen the measures that can be taken by a local transport authority under an enhanced partnership scheme so that they can relate to any local services in the area concerned. That is very sensible; we need not trouble the Committee any longer with consideration of that clause.

Clause 16, which deals with the passenger benefit requirement, replaces section 138C(9) of the 2000 Act. It sets out requirements in respect of local services to allow an enhanced partnership scheme to require bus operators to provide benefits to bus passengers in return for public expenditure on facilities or measures that will reduce operating costs. It is a simple and practical balancing act between the commercial operations that pay for themselves and the socially necessary additions that a local transport authority may wish to negotiate as part of the enhanced partnership. It is about the quid pro quo of how those can be funded other than by direct subsidy.

Clause 16(9)(a) provides that local transport authorities may include requirements that relate to operators establishing and operating arrangements that facilitate an EP scheme, and subsection (9)(b) may require bus operators to provide benefits to bus passengers if they benefit from action taken by the LTA or other public authorities, including the Secretary of State. Again, this is a sensible adoption of a quid pro quo process rather than having route extension with direct subsidy. For the Conservatives, the provisions seem to sensibly widen the options for trade-offs, and we are supportive of them.

Clause 17 inserts into the 2000 Act proposed new section 138(KA), so that where an EP scheme can be varied in accordance with the scheme, a variation can be made under section 138(K) only when the Secretary of State is satisfied of two things: first, that operators have behaved unreasonably or obstructively, and secondly, that the variation or revocation will benefit the users of local services. Again, this is a sensible approach for the Secretary of State to take and we will not object to clause 17.

The Liberal Democrats’ new clause 37 would deal with the variation of EP schemes to improve the integration of public transport. It would mean that a variation to an EP could take place only if it had the effect of improving integration across different modes of transport. Although I understand and applaud the rationale behind the drafting of the new clause, one has to be careful of the unintended consequences, because it would prohibit any change to an EP that did not also improve integration across different modes of transport. Many variations to an enhanced partnership might have multiple benefits for passengers, but might not have the benefit of improving integration across different modes of transport. Under a strict reading of the new clause, such improvements would be prohibited. I know that is not the Liberal Democrats’ intention, but as the new clause is worded that would unfortunately be the effect.

I will not make any comments on new clause 50, other than that, unusually, I support the words of the Minister in that the trade unions already come under the wording of the Bill.

[Mr Kohler]

New clause 37 is sensible and constructive. It would ensure that when enhanced partnership schemes are amended, improved integration across modes of public transport is explicitly recognised as a legitimate and desirable reason for doing so.

We have seen time and again, both here in the UK and internationally, that when public transport is properly integrated, it works. It becomes more convenient, reliable and attractive to passengers. People choose to use it and when that happens, buses flourish. Whether it is better co-ordination between bus and rail timetables, joined-up ticketing or clear and consistent information across modes, the benefits of integration are obvious. Without a clear statutory basis for prioritising integration, too often such opportunities are missed.

--- Later in debate ---

[Rebecca Smith (South West Devon) (Con)]

It is great to serve under your chairmanship this morning, Dame Siobhain. I want to follow up on what my hon. Friend the Member for Broadland and Fakenham said and ask a few additional questions, particularly about the provision in clause 18 for persons with disabilities.

I obviously welcome the inclusion of this clause in the Bill—we clearly want to ensure that public transport is as accessible for all as possible—but I am slightly concerned that, in a way, it provides false hope. Subsection (2) states:

“An enhanced partnership scheme may specify”,

so it is a “may”, rather than a “must”. It is nice to have that consultation, but there is an opportunity for the local authority or whoever is providing the bus service not to do it. The clause allows for a consultation, but there are no guarantees that what disabled people want will happen.

I am also slightly concerned about the taxi guarantee scheme. I do not know whether hon. Members have experienced the same thing as me, but my constituency of South West Devon is an interesting mix of urban and rural. It might be thought that large chunks of Plymouth are technically easily accessible, but the Access Plymouth minibus system does not even work across the city, let alone go into the rural parts of the constituency. Out in the South Hams and West Devon, which is a different local authority, the bus services are typical rural bus services: they are not very reliable or frequent.

It is also worth saying that taxis are not reliable either. Just this weekend, a local taxi service that runs out of the village put a post on social media saying, “We’re fully booked this evening.” Even able-bodied people, let alone people with disabilities who are trying to benefit from a taxi guarantee scheme, need to book in advance, so I question the feasibility of delivering on this clause.

We are not only saying that bus services will be reliable for persons with disability; we are offering them a taxi guarantee scheme. Yet we do not know—I assume the Minister will be able to explain this—what assessment has been made of the wider public transport picture or whether the taxis exist to provide the scheme, particularly in our rural communities. I know the Bill seeks to address those places. Ultimately, we need to ensure that we manage the expectations of those we are trying to help with the Bill.

I ask the Minister, what consultation has been held on, and what thought has been given to, the provision of rural services for people with disabilities? The taxi guarantee scheme is a great idea, but is it deliverable? What analysis has been made of that? Secondly, what might stop a local authority from delivering on this, and what assessment has been made of potential obstacles? Apart from the supply of buses and taxis, are there other reasons why a local transport authority might not be able to deliver this?

If it is that important to ensure that persons with disability can access public transport, which is something that I think we all agree we want, then the obvious question is: why does the legislation not say that an enhanced partnership scheme “must” do it? Why does the Bill say just that it “may”? It seems that there is a conflicting ambition here. Perhaps I have answered my own question in saying that there might not be the supply, but if we want to ensure a better world for persons with disability, I am intrigued as to why it does not say that a scheme must do this.

[Mr Kohler]

The clause, added during scrutiny in the Lords, is a welcome and valuable improvement to the Bill, but we would like to know what consultation was held with disabled groups before it was drafted. Although the changes it makes might seem modest on paper, they have the potential to make a significant difference in improving accessibility across our bus network.

Subsection (2) allows enhanced partnership schemes to specify requirements to ensure that disabled people can travel independently, safely, and in reasonable comfort on local bus services. The inclusion to allow the specification of a taxi guarantee scheme is also welcome. Although we share some of the concerns of the hon. Member for South West Devon, such a scheme may prove to be vital in ensuring that disabled and other vulnerable users feel comfortable and confident in using the bus. Subsection (3) strengthens the consultation process and ensures that disabled users or organisations representing them are consulted before any EP scheme is made. That is not just good practice; it is essential if we are to build a transport system that works for everyone.

Subsection (4) mirrors that requirement when enhanced partnership schemes are varied, and guarantees that the accessibility is not forgotten as schemes evolve. Authorities must once again consider whether changes enable disabled people to travel independently, safely, and in comfort. These are considered but welcome changes. Accessibility cannot be an afterthought; it must be embedded from the outset and considered at every stage of decision making. These welcome measures help to support that.

[Simon Lightwood]

I thank hon. Members for their thoughts on the clause. I remind the Committee that the clause was inserted into the Bill because the Government listened intently to concerns in the Lords. The clause will help authorities better reflect the needs of disabled passengers in the design of enhanced partnership schemes and plans. It will enable the specification of requirements of disabled people to travel independently, safely and in reasonable comfort. That extends to when a local transport authority is varying an enhanced partnership scheme. It will help local transport authorities to understand better the impacts on disabled passengers, and fits into how the Government are reforming transport to make it more inclusive, placing the passenger at the heart of everything we do.

The Government are determined to ensure that, as far as possible, local transport authorities take proper account of the needs of disabled people in using local bus services. The clause will support them in that. I have had many meetings with various groups, including disability groups, and I engage widely with the Disabled Persons Transport Advisory Committee—DPTAC—to help and guide us on the Bill. As I said, the clause was a reaction, having listened to concerns in the Lords.

Question put and agreed to.

Clause 18 accordingly ordered to stand part of the Bill.

Clause 19

Objections by operators

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

[Jerome Mayhew]

The Minister did a good job of précising the contents of the clause, so I will not repeat that—I know everybody will breathe a big sigh of relief. However, there are some issues; essentially, clause 21 requires a bus network accessibility plan to be created, but it does not then tell us what to do with it. My questions are around the theme of: “So what?” It is all very well to create a plan that just describes the status quo, but there is no requirement to improve. The current effect is to create cost and bureaucratic process with no outcome for passengers.

This is a real problem with both this legislation and legislation more widely: we think process is very important—because we are policy people—so we focus on all the hoops that organisations need to jump through. Too often, however, we forget to take the next step and understand the practical impact of the process on our constituents, in particular those who use buses. There appears to be no positive benefit from the clause as drafted, other than having another document collecting dust on a shelf somewhere.

What is the point of the requirement? It identifies need and describes what the LTA is planning to do about it, but that is it. It feels a bit like virtue signalling without funding, since improvements are expensive, particularly provisions for those with additional needs and disabilities, and do not add significantly to the fare box. What is the practical application of the clause? It applies a significant additional burden on local transport authorities, which have to jump through the hoops that we are creating, but what is the benefit?

New clause 23 in the name of the Liberal Democrats is a different version of the same thing, but I look forward to the explanation and advocacy of it by the hon. Member for Wimbledon. The only difference is that the plan would be annual rather than triennial, which would triple the amount of bureaucracy and cost associated with the provision. The new clause would include proposals to improve bus route accessibility but, again, with no requirement actually to change anything. I know that is not the intention of the hon. Member, but both the clause and the new clause are entirely useless without funding attached. Since no reference to such funding appears anywhere in the Bill, that does beg the question, what is the point of the clause and the new clause?

[Mr Kohler]

In answer to the hon. Member for Broadland and Fakenham, our new clause 23 addresses the weaknesses in the existing clause 21. According to research by the National Centre for Accessible Transport, 90% of disabled bus users report facing barriers to using the bus network. Those include space constraints, poorly designed bus stops, the lack of step-free access when boarding or alighting, and the continuing absence of induction loops. Buses are not a luxury for many disabled people; they are a vital connection to work, services, friends and family. Putting accessibility front and centre is not optional; it is essential.

The clause is therefore a step in the right direction. It rightly requires authorities to consider how to make bus services more accessible. However, if we are serious about delivering meaningful progress, we must go further. That is why we have tabled new clause 23, to build on the work started in clause 21 by introducing a requirement for annual reporting on accessibility progress.

The existing clause requires the accessibility plan to be reviewed only every three years. We believe that is too long; three years is a long time in which to do nothing. I draw Members’ attention to subsection (4) of our new clause 23, which lists practical things that the report would have to report on to draw attention to the public, the Government and voters exactly where there are shortfalls in, problems with and obstacles to addressing the need.

We need to go further than simply having the requirement. Under the Conservatives, the Access for All programme was left to wither and die on the vine. Unless we actually do something more practical, as we are suggesting, that is what will happen again. I agree that none, or not much, of the Bill will work without adequate funding—that is a given—but we have already made that point, and the new clause would give the oxygen of publicity to what is happening. We think that is important.

We do not think that new clause 23 would impose a significant new burden. It would simply require local transport authorities to produce a short annual update, setting out how they are progressing against the goals in their accessibility plan, to allow for regular scrutiny, course correction where needed and, above all, accountability. If we want a bus system that works for everyone, we must ensure that local authorities do not just create plans, but deliver on them, transparently and consistently. For that reason, we support the clause standing part of the Bill, and we urge the Government to adopt new clause 23.

--- Later in debate ---

Grants

[Mr Kohler]

I beg to move amendment 56, in clause 23, page 18, line 42, at end insert—

“154B Consideration of operator size in grant allocation

(1) When exercising powers under section 154A, a local transport authority in England may have regard to the size of the operator when determining the amount of a grant and the conditions which may be attached to it.

(2) In particular, local transport authorities may—

(a) give priority to small operators for the purposes of ensuring the sustainability and diversity of local transport services,

(b) adopt measures to protect small operators from disproportionate financial burdens or competition, and

(c) take into account the financial and operational capacity of small operators to meet service demands.

(3) When determining what constitutes a small operator, a local transport authority may consider—

(a) the size of the operator’s fleet,

(b) the number of employees employed by the operator, and

(c) the operator’s annual turnover or other financial capacity.”

This amendment would enable local transport authorities to prioritise small transport operators when allocating grants.

[The Chair]

With this it will be convenient to discuss clause stand part.

[Mr Kohler]

We welcome the powers in clause 23, which enables local transport authorities to design and deliver grants directly to bus operators in their areas. It is a clear step in the right direction, placing real tools in the hands of local authorities, which know their communities best and are best placed to shape the services that their residents rely on.

Amendment 56 builds on that principle. It would ensure that, when designing grant schemes, local authorities must consider the size of transport operators. Too often, smaller bus companies, many of them deeply embedded in the communities they serve, struggle to compete on an uneven playing field, especially when it comes to accessing capital for improvements or expansion. Our amendment recognises the vital role that those smaller operators play.

By requiring authorities to take those smaller operators’ circumstances into account and, where appropriate, prioritise them in their grant making, we would help to protect local choice, preserve vital routes and foster healthy competition in the sector. In short, this is a modest but meaningful measure to ensure that smaller operators are not squeezed out, and that communities continue to benefit from diverse, responsive and locally rooted bus services. We therefore support amendment 56 and the clause standing part of the Bill.

[Simon Lightwood]

The Government recognise the importance of small and medium-sized enterprises in driving economic growth. The hon. Members for Wimbledon, for North Norfolk and for South Devon clearly recognise that, too, given the amendment that they have tabled. This Bill aims to support our economic growth mission by giving local transport authorities greater freedom to decide how best to support their local networks.

Amendment 56 is intended to ensure that local transport authorities that choose to use the new powers to design and pay grants to bus operators consider the needs of small operators when designing those grants. The amendment is not needed, however. Clause 23 would do nothing to restrict local transport authorities from choosing to provide greater support to local small bus operators when designing their own grants, provided that those grants comply with competition and subsidy rules. Local transport authorities are already well placed to understand the needs of their small operators, because most are already part of enhanced partnership arrangements with operators in their areas. It will be for local transport authorities to decide the best way to support their local bus networks as a whole.

Finally, local transport authorities, as public authorities disbursing funding, will need to be mindful of the fact that any grants that they design using the powers under the Bill must comply with any relevant legal requirements, such as subsidy controls that ensure they are not distorting the local or national market. I therefore ask that the hon. Member for Wimbledon withdraw the amendment.

[Mr Kohler]

We remain of the view that without the amendment, the proposals will not give small bus companies the benefits that we are seeking to achieve. We are not convinced that that can be done without the explicit mention of small bus companies, as provided by the amendment.

[The Chair]

Does the Member want to withdraw the amendment or press it to a vote?

[Mr Kohler]

I will press it to a vote.

Question put, That the amendment be made.