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

Simon Lightwood Excerpts

Committee stage
Tuesday 24th June 2025 Public Bill Committees

[The Chair]

With this it will be convenient to discuss new clause 22—Duty to promote bus services—

“(1) It is the general duty of any relevant authorities overseeing bus operations to promote bus services in their jurisdiction.

(2) In fulfilling this duty, authorities may consider—

(a) the potential benefits of making bus services economically competitive with other transport options;

(b) measures to enhance the environmental sustainability of bus services, including but not limited to reducing emissions and supporting greener transport alternatives;

(c) the broader social, economic, and environmental benefits of increasing bus patronage;

(d) the need to reduce road congestion and improve urban mobility;

(e) opportunities to contribute to lower air pollution and reduced greenhouse gas emissions;

(f) the provision of affordable and accessible transport that promotes social inclusion;

(g) the need to improve access to employment, education, health, and other essential services.

(3) A relevant authority must publish a report every two years which outlines steps taken to fulfil this duty, including—

(a) progress in making bus services economically competitive and environmentally sustainable;

(b) the effectiveness of policies and measures aimed at increasing bus patronage;

(c) challenges faced in promoting bus services and proposing or implementing solutions; and

(d) plans for future improvements in bus services.

(4) Relevant authorities may consult with any relevant stakeholders, including transport operators, local businesses, and members of the public, which they deem to be expedient for the purpose of fulfilling the duty outlined in this section.”

This new clause would place a duty on authorities to promote bus services in their areas.

[The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)]

It is a pleasure to serve with you in the Chair, Sir Roger. I think I speak for the majority of Committee members in saying that, as this is my first Bill Committee, I will be guided by your experience and that of the Clerks.

This clause places a duty on the Secretary of State to have regard to the purpose of the Bill, namely the improved performance, quality and accessibility of bus passenger services in Great Britain. The clause was inserted into the Bill via a non-Government amendment in the other place. I will take this opportunity to outline the Government’s objectives for buses, which extend well beyond the Bill and explain why the clause is not necessary.

The Government know that for far too long, buses have not been delivering for passengers. Long-term service decline has undermined confidence and contributed to falling patronage. Efforts to buck that trend have not gone far enough. The Government’s vision is for better bus services across the country. We seek to grow passenger numbers and drive opportunity to underserved regions. That means enabling local areas to shape services that connect people to the places where they need to go; that can be counted on as a reliable, affordable, inclusive and better integrated part of the transport network; and that offer bus passengers, in particular women and girls, safety throughout their journeys. Passengers should also be able to access accurate, accessible and timely information about when and where buses will run.

The Bill is an important part of delivering that vision. Local leaders will be given powers to decide how best to design bus services in their areas, whether that is through bus franchising or strengthened enhanced partnerships. The Government are taking steps to ensure that essential services, including those in rural areas, are protected, that safety is improved, and that services are more accessible.

Legislative change alone, however, is not enough. In addition, the Government have published updated franchising guidance. Reforms to how bus services are funded are also being implemented, with the bus service improvement plan and the bus service operators grant funding being combined into a single bus grant. Furthermore, at the spending review, the Government committed £900 million each year to maintain and improve vital bus services; extended the £3 fare cap until March 2027; and announced franchising pilots in York and North Yorkshire, and Cheshire West and Chester.

The clause, therefore, does not account for the full scope of the Government’s ambition. It cannot do so, because our ambitious reform package extends beyond the structural changes that the Bill makes. The clause would also amend the Bill to limit its outcomes to specific aims, which would not take into account the other outcomes that the Government seek to achieve, such as improved safety. I hope that my comments demonstrate to Members the Government’s objectives for buses. For those reasons, the Government will oppose the clause remaining part of the Bill.

I thank the hon. Members for Wimbledon and for North Norfolk for tabling new clause 22. I have explained that the Bill is about empowering local leaders across the country to shape better bus services for their communities. Beyond the Bill, the Department for Transport allocated more than £700 million of bus grant funding to local transport authorities in 2025-26. That included additional funding for local transport authorities to boost their capability, so that they can make the most of the opportunities that the Bill gives them. I have already spoken about the announcements at the recent spending review, including the extension of the £3 bus fare cap to March ’27. Work is already under way to ensure that the Government provide active support to local transport authorities, such as those interested in franchising.

The Bill is about giving local areas choice, and with that comes trust. That is consistent with what the Government seek to achieve through devolution. My view is that authorities and operators want to promote bus services in their local areas, which will help their communities to thrive and create growth. New clause 22, however, would place additional requirements and reporting burdens on local authorities and local transport authorities. That would lead to additional pressures on authorities already under resource constraints. That is not the Government’s intention. We want authorities to be focused on delivering better buses and, as I said, we want to give them the tools to get on and do precisely that. The new clause has the potential to compel authorities to divert funding from essential services to other activities. For those reasons, the Government cannot support it and I ask that the new clause not be moved.

[The Chair]

I will give another word of explanation at this point. Ordinarily, I would call the shadow Minister first and then other Members, but because Mr Kohler tabled the new clause, I shall call him first and then the shadow Minister. The first four debates on the selection and grouping list are on clause stand part, which means, literally, that the clause being considered shall stand—remain—part of the Bill. If the clause is amended, the Question will be whether the clause, as amended, stand part of the Bill.

When we come to a group with a lead amendment, as we will in our fifth debate, I have the authority to decide whether to subsequently permit a clause stand part debate. We will debate the amendments in the group, and then I will put the Question that the clause stand part of the Bill—but that can be debated. Different Chairmen take different views. My view is that you can have your cake, but you cannot eat it twice. You can have a big debate, which sometimes facilitates a general discussion—that is fine by me—but it almost invariably means that you then do not get a second bite of the cherry with a stand part debate at the end.

If you have any questions, ask. It is a slightly complex and arcane process, but we will get there in the end.

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[Joe Robertson]

It is a pleasure to serve with you in the Chair, Sir Roger.

I rise to endorse the comments made by the shadow Minister, my hon. Friend the Member for Broadland and Fakenham, and to draw further attention to an issue with new clause 22: placing duties on local authorities without money coming in. Central Government are very good, and have been for decades, at requiring things of local government, which naturally leads to increased costs on councils to deliver the relevant duties and comply with the law, but councils do not automatically—in fact, very rarely—get money to go towards complying.

The duties set out in the new clause seem obvious. Subsection (1) says:

“It is the general duty of any relevant authorities overseeing bus operations to promote bus services in their jurisdiction.”

Subsection (2) has paragraphs (a) to (g). I will not read them all out, but paragraph (a) says that authorities may consider

“the potential benefits of making bus services economically competitive with other transport options”.

There is also a requirement to report every two years. That looks laudable. One would hope it would lead to better bus services, but it would place a cost burden on local government without money coming to every local authority. That is my concern: placing duties without accompanying finance in all cases. That is why I have difficulty with new clause 22, although I appreciate the intention and sentiment behind it.

[Simon Lightwood]

As I said in my opening remarks, clause 1 does not account for the full scope of the Government’s ambition. The shadow Minister talked about incentives; I think the incentives for local authorities are really clear, if not the clearest. They know what is best for their local areas. They are driven by the desire to tackle the social and economic challenges within their areas, and I do not agree that the clause would add anything to that.

The shadow Minister’s reading of “quality” to include safety is subjective. I do not think it is as clear as he made out. The franchising guidance states that an LTA must

“explain how far it will deliver improvements”

if it franchises. The guidance also has a chapter to ensure that an LTA articulates how it is putting people at the heart of franchising assessments. Although it is not in the legislation, the guidance is clear about driving improvements.

New clause 22 would create an additional reporting burden on local authorities and local transport authorities, which are already operating under resource constraints, while potentially undermining their devolved powers to determine transport priorities in line with their local transport plans. I am not able to support it.

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

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[The Chair]

With this it will be convenient to discuss the following:

New clause 14—Franchising statement—

“(1) The Transport Act 2000 is amended as follows.

(2) In section 123A, after subsection (1) insert—

‘(1A) The power in subsection (1) cannot be exercised until the franchising authority, or two or more franchising authorities acting jointly, has published a statement, subject to the requirement in subsection (1B), stating—

(a) their objectives in making the franchising scheme, and

(b) their reasons and evidence for believing that the making of such a scheme is the best option for achieving those objectives.

(1B) It is a requirement that a statement in subsection (1A) must be published before the franchising authority complies with the requirements in sections 123B to 123G.’”

This new clause seeks to ensure that before initiating the formal franchising process undersections 123B to 123G of the Transport Act 2000, franchising authorities must first publish a statement outlining their objectives, reasons, and supporting evidence for believing that franchising is the best option to achieve their aims.

New clause 18—Cost of franchising schemes—

“(1) Where a local authority owned bus company is providing franchised bus services, the authority or authorities must publish annually—

(a) The anticipated cost of the franchise for that year

(b) The actual cost of the franchise for that year.

(2) Where an authority (or authorities) have transferred the franchise from a privately owned bus company to a local authority owned bus company, the authority (or authorities) must publish—

(a) the costs incurred by the franchising authority in transferring the service, including the transfer of undertakings (protection of employment costs); and

(b) a breakdown of how those costs are being incurred.

(3) The reports required by subsections (1) and (2) must be published in a format that is easily accessible on the website of the relevant authority or authorities.

(4) Each local authority which runs a bus company delivering franchised bus services must ensure that time is made available for the reports required by subsections (1) and (2) to be debated at a public meeting of the full council.”

This new clause would require transparency about the costs of franchising local authority owned bus services.

New clause 30—Guidance on the development of franchising schemes—

“(1) The Secretary of State must, within 12 months of the passing of this Act, issue guidance for local transport authorities on the development of a franchising scheme.

(2) Any guidance produced under this section must include specific information or guidance for local transport authorities in—

(a) rural areas;

(b) coastal communities; and

(c) suburban areas.”

This new clause would require the Secretary of State to produce guidance for local transport authorities on the development of franchising schemes.

New clause 38—Franchising authorities: joint forum—

“(1) When operating a franchise scheme, the franchising authority must establish a joint forum with operators and trades unions.

(2) The purpose of the joint forum is to address bus service staffing and employment issues in the area covered by that franchising authority.”

[Simon Lightwood]

Clause 2 removes the requirement for local transport authorities that are not mayoral combined authorities or mayoral combined county authorities to gain the Secretary of State’s consent to start the franchising process. The measure puts all local transport authorities on a level playing field. It also removes from the process an administrative step that does not provide an effective check on local transport authorities’ plans, given that it occurs before a franchising assessment is produced. I am confident that the measure will make franchising more attractive to local transport authorities by speeding up the overall process.

New clause 14, tabled by the hon. Member for Broadland and Fakenham, would require authorities to publish a statement that outlines their objectives, reasons and supporting evidence for deciding whether franchising is the best option to achieve their aims, before they initiate the formal process. The Department for Transport has established franchising guidance; to require local authorities to provide an up-front statement during an exploratory stage would be premature. The franchising scheme assessment also provides a robust way to present the evidence and rationale behind a decision to franchise.

Although local authorities might choose to develop a feasibility assessment to investigate the right bus model for their area, this should remain optional to allow them the flexibility to adopt the approach that best suits their needs. The new clause would also make the franchising process slower and undermine the Government’s ambition to streamline franchising, making it faster and more cost-effective.

New clause 18 would require local authorities to publish the costs associated with franchised bus services operated by local authority-owned bus companies. Authorities are already subject to statutory requirements to publish detailed information on their spending and financial performance. Under the 2015 local government transparency code, they must regularly publish data on all expenditure over £500, and are required to produce and make publicly available their annual statements of accounts, which are subject to external audit and public scrutiny. The framework ensures a high level of financial transparency and public accountability, making such an additional burden on authorities unnecessary.

New clause 30 would require the Secretary of State to produce guidance for local transport authorities on the development of franchising schemes that includes specific information on rural and suburban areas and coastal communities. The Department for Transport has published franchising guidance, including on the consideration of neighbouring authorities and on the requirement to consult affected areas. The Department continuously refines the franchising guidance, and plans to undertake comprehensive updates after the Bill receives Royal Assent. The introduction of piecemeal additions without considering the guidance in its entirety would risk reducing its effectiveness.

In addition to the guidance, the Department supports LTAs through the franchising and bus reform pilot. The ambition is to explore alternative models that may suit a local area and help to provide evidence for the decision. Lessons learned, tools, templates and best practice will be shared throughout the pilot programme.

New clause 38, tabled by my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald), would require franchising authorities to establish a forum of stakeholders to address staffing and employment issues in the franchising area. It seeks to increase accountability in areas that choose to adopt franchising. I am sympathetic to the new clause’s aims, but it is not the role of central Government to prescribe how local transport authorities run their services. Franchising guidance that covers driver welfare already exists, giving the franchising authority scope to decide what forums it wants to put in place to support the delivery of its bus services. The new clause is therefore unnecessary and I hope it will be withdrawn.

[Jerome Mayhew]

Clause 2 amends the Transport Act 2000 in relation to the availability of franchising schemes. It is essentially a facilitating clause to allow for one of the really important changes in the Bill, which is to remove the requirement for the Secretary of State to consent to any local authority other than mayoral combined authorities when deciding whether to embark on a franchising scheme.

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[Steff Aquarone]

It is a pleasure to serve under your chairship, Sir Roger. I will speak to the clause and to new clause 30 in my name and that of my hon. Friend the Member for Wimbledon. We have this Bill Committee, Department for Transport estimates day and the forthcoming Transport Committee report on connecting rural communities—we wait for years for the opportunity to talk about buses, and three come along at once.

I strongly welcome the widening of bus franchising opportunities. Rural transport, in particular, needs a proper rethink, and the greater powers that transport authorities can get hold of as a result of the Bill will, I believe, allow local leaders to do just that. People are already welcome the idea of bus franchising. When we visit London, we do not quibble about whether our red bus is run by Transport UK, Arriva, Stagecoach or another franchise holder; we care that it comes at the time we want and takes us where we want to go.

What is lacking in the Bill, however, is leadership relating to how the powers can be used to make a much needed difference to people in rural areas. We have models of urban bus franchising to follow—London has taken the lead and now Manchester is following—but it has never been attempted in a truly rural area. It would be quite reckless of the Government to leave authorities completely rudderless, because some would be guaranteed to go off the rails, and we all know that residents would pay the price in their passenger experience and council tax bills. I gently say to the Minister that this is not about whether guidance is in the pipeline; it is about how far it goes and how robust it is.

Our new clause 30 is the first of our many new clauses and amendments that seek to provide guardrails, guidance and models for those adopting franchising for the first time, in a situation where there may be little evidence to go on. Given the concerns of the hon. Member for Isle of Wight East about how franchising might work in rural areas, there could be some good news for him in our new clause, but we need to adjust our thinking about what good bus services look like in such areas. While we do not want a top-down imposition of things on rural, coastal and suburban areas, I and other hon. Members believe it would be good for those areas to be given a greater degree of support from the Government than there currently is in the Bill. I also think that specifically outlining such areas in the Bill will help to ensure greater consideration of the unique characteristics of those parts of the country.

Even if the Department pledges to produce guidance, it could fail to address the challenges faced in rural communities in particular. Coming from a rural area, I know how much Government policy feels like it was written by someone who has rarely stepped foot outside the SW1 postcode. Our coastal communities remain without a top-table representative in Government, and I struggle to see how residents of rural communities can trust that such guidance will be forthcoming unless it is in the Bill, or that it will represent the challenges and needs of their areas.

I hope that the Minister will give due consideration to what we are trying to achieve with new clause 30. I do not expect him to accept it, although he is welcome to do so, but I hope that he outlines the steps that his Department will take to provide comprehensive and structured support to those authorities embarking into uncharted territory with their franchise schemes, beyond what we have heard already.

[Simon Lightwood]

I will try not to repeat the comments that I have made already, but I will say to the shadow Minister, the hon. Member for Broadland and Fakenham, that yes, the Conservative Government did put franchising in place. They also ensured that it was near impossible to achieve, as there were so many barriers. Instead of playing party politics about Manchester, what the Conservatives should be saying to Andy Burnham is, “Thank you for your vision. Despite all the barriers that we placed before you, you still managed to achieve franchising and improve bus services throughout Greater Manchester.” The shadow Minister also talked about the primacy of passengers—but excuse me if I judge the previous Government on their actions, not just their words, because from 2010 to 2024, 300 million fewer miles were travelled on buses.

[Jerome Mayhew]

There is a lot of to-ing and fro-ing about which system passengers prefer. The way to really judge that is through ridership—how many people take the buses. It is absolutely right that in Greater Manchester, under the Bee Network, there has been a post-pandemic increase in ridership of about 34%, from memory. However, does the Minister not accept that in Norfolk, where there is an enhanced partnership, ridership has increased by more than 40%, and in Essex, another enhanced partnership area, ridership has increased by more than 50%? The point is that it is not the scheme design that is fundamentally important, but the way in which it is approached. Does the Minister accept that we can have outcomes that are just as good—better outcomes, in fact—through enhanced partnerships as we can through franchising?

[Simon Lightwood]

What the shadow Minister failed to hear in my previous remarks is that there is no one-size-fits-all approach to buses. This could be done through franchising; it could be done through municipal bus companies or local authority-operated bus companies; or it could be done through strengthened enhanced partnerships.

Let me touch on franchising, because the shadow Minister talks about Manchester as the full-fat model. A huge number of alternative franchising arrangements are available, including the Jersey model, which I will go into in a moment. Within franchising assessments, there will be a detailed investigation that is then checked robustly for assurance purposes. Obviously, the process as it stands does not provide an effective check on local transport authority plans, because it happens before a franchising assessment is produced.

On the Secretary of State’s consent, as I have said, it is not effective because it is at the beginning of the franchising process. The assessment must look at the finances of the proposed scheme and then be independently assured. Different areas will also have different circumstances when pursuing franchising; the Secretary of State is not in a position to scrutinise them all.

On funding and LTA support, £1 billion of funding was announced for 2025-26, £700 million of which was for local authorities to improve bus services. That is not for franchising per se; as I said, there is no one-size-fits-all approach. The Government are opening up options to local transport authorities. No LTA is being forced to franchise. No LTA has been forced to franchise through the Greater Manchester model, in fact. The Government are looking at how best to support LTAs, including through franchising pilots, which will include elements of rural communities as well. Funding is provided through the bus allocations for LTAs to decide how to spend. The franchising pilots will look at alternative models, one of which could be a joint venture model like the one in Jersey.

[Jerome Mayhew]

The Minister is right, of course, that all sorts of different franchising schemes and mechanisms are available, and I am looking forward to his description of the Jersey model. However, does he not recognise and accept that, of the authorities that have expressed a direction of travel so far, both Liverpool and West Midlands have also decided to go down what I have described as the full-fat model? It is not just Manchester being an outlier. It is likely that the Bill will ensure—in fact, it is happening already—that full fat is seen as the direction of travel. Does the Minister not think that that is correct?

[Simon Lightwood]

I concede that, at the moment, it tends to be city regions that are looking at franchising, which is why we are doing the pilots to ensure that we have the template approach. We will learn the lessons from the various different franchising models that could be used. As we announced at the spending review, York and North Yorkshire is one of the areas that would be ideally suited to demonstrate the effectiveness of franchising in a rural setting. There was a comment about coastal communities, so let me just put this on the record: this South Shields-born, not SW1-postcoded MP knows full well the importance of buses to coastal and rural communities. In fact, I am the son of a bus driver as well. [Interruption.] I have ticked all the boxes—he was not a toolmaker, though.

Let me touch on Manchester. The figures quoted on franchising costs in Manchester refer to the level of investment being made to improve Greater Manchester’s bus network, supporting economic growth, greater productivity, access to homes and so on. In 2024-25, the cost of operating the franchised bus network was about £151 million, but it would be misleading to compare that with the £226 million in an attempt to argue that costs have inflated year on year. Greater Manchester was only partway through the three-phase transition to franchising during ’24-25, so the cost was accordingly lower. Transport for Greater Manchester was operating only half of the full network for the majority—nine months—of ’24-25. There is very little additional cost resulting from the adoption of franchising in Greater Manchester, and evidence to date shows that this model is more efficient and effective at delivering value for money.

Bus depots in Greater Manchester were required to ensure a level playing field when procuring franchised operators; otherwise, there would be an inherent advantage, of course, to incumbent operators. Depot acquisition also recognises the importance of investing to bring infrastructure up to modern standards to deliver a quality service and electrification of the fleet.

Turning to local authority bus companies—LABCos or municipal bus companies—there is a level playing field for arm’s length LABCos, which the existing ones in England are, and for private operators. There is existing legislation and regulations around local authority bus companies.

There will be different ways that LTAs can franchise. Rural areas, for example, could look to integrate demand-responsive transport into the network. It is right to recognise the successes that there have been in Jersey. When I visited in April, I saw at first hand the benefits of franchising and what it has delivered for passengers. A small team have successfully introduced franchising in rural areas. Although that offers useful lessons for rural and suburban communities in England, Jersey offers just one model, and there will be particular local transport challenges and opportunities in other places. Far from stipulating the one-size-fits-all Greater Manchester model, we are exploring and working with local transport authorities throughout the country to demonstrate different forms of franchising to make that a success.

Question put and agreed to.

Clause 2 accordingly ordered to stand part of the Bill.

Clause 3

Specification of areas

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

[The Chair]

With this it will be convenient to discuss the following:

Amendment 70, in clause 4, page 2, line 10, leave out “or places” and insert

“, places or Rural Bus Hubs”.

This amendment is linked to NC35 and would allow rural bus hubs to be included in the specification for a franchise scheme.

Clause 4 stand part.

Amendment 71, in clause 38, page 41, line 23, after “England” insert—

“(e) the impact, or potential impact, the establishment of Rural Bus Hubs on services to villages.”

This amendment would require a review of bus service provision for villages to include an assessment of the impact of rural bus hubs, if already established, or the impact which establishing them may have on villages.

New clause 35—Rural Bus Hubs—

“(1) Local transport authorities may consider the construction of Rural Bus Hubs in rural areas which are, in the authority’s assessment, not sufficiently well-served by buses.

(2) Any Rural Bus Hub must—

(a) be a facility where bus users can park vehicles for the purposes of transferring to a bus service for the remainder of their journey;

(b) be constructed outside of town or and village centres, and be easily accessible by road, cycle or walking routes and other modes of transport;

(c) be on newly-developed sites or on sites which have been repurposed;

(d) contain car parking, electric vehicle charging, cycle parking and other amenities as the franchising authority sees fit, at a level of adequacy determined by the franchising authority.”

This new clause would allow local transport authorities to create rural bus hubs in areas to create a hub-and-spoke model of bus service delivery.

[Simon Lightwood]

The clause enhances the flexibility of franchising in terms of the areas that can be brought into such a scheme. The Government understand that there is a lack of clarity about whether a franchising scheme may specify more than one non-contiguous area. The clause therefore clarifies that that is permissible, meaning that franchising authorities may be flexible in the areas that they can bring into a franchising scheme. For example, it will allow rural authorities to focus on franchising in individual towns and villages if they so wish.

I thank the hon. Members for North Norfolk and for Wimbledon for tabling amendment 70 that would allow rural bus hubs to be included in the specification of a franchising scheme. The franchised services that a franchising scheme will provide must be specified or formally set out and published. This ensures that the scheme will deliver in a transparent way. The amendment would make it explicit that franchised services could be specified by reference to the rural bus hubs that they might serve. The amendment is unnecessary because the Bill already allows franchising authorities to specify places that franchised services will serve. Places can include rural bus hubs.

Alongside clause 3, clause 4 also enhances flexibility for franchising authorities by clarifying how franchised services may be specified in the scheme. This ensures that franchising authorities can more easily make minor changes to franchised services. For example, the clause will give a franchising authority scope to specify services by listing specific places to be served, or by specifying places by the purpose they serve. Purposes could include connecting students to school or employees to work.

The clause allows franchising authorities to combine approaches to specifying services. This will allow adaptability and ensure that franchising authorities can develop franchising schemes that meet the needs of different communities, such as those in urban and rural areas. The clause also has transitional provisions for authorities that have started the process of franchising prior to the Bill becoming law.

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

I am conscious that we are finishing in three minutes, so I will limit my comments to give the Minister some time. Like my hon. Friend the Member for Broadland and Fakenham, I query the premise that public is better than private. The hon. Member for Warrington South mentioned the ability to provide a better service than existing franchise services, but I want to put on record that we can still get £2 fares in South West Devon. There is not necessarily a concrete need for a franchise; it is not necessarily a magic wand. I will fit my other comments in somewhere else, because I am conscious of time.

[Simon Lightwood]

I thought the Liberal Democrats were the party of devolution, but they have a strange habit of wanting to tell local areas what to do and how to do it. Rural bus hubs are not yet widespread and the available data on their impact is limited. I have already outlined that there is no one-size-fits-all solution to improving buses. Local transport authorities in rural areas better understand the needs of their local communities, so it is right that they are given the opportunity to determine what is right for their areas.

I have already spoken about the different models for bus franchising, such as the Jersey model. The pilots will explore the models that may suit rural areas over metropolitan areas. In a rural setting, bus franchising could provide the opportunity to integrate demand-responsive transport into the network, ensuring that it links rural areas to key locations and access to onward travel options.

The Government are also supporting local transport authorities to improve the viability and sustainability of demand-responsive transport. That may be the most viable option in rural areas. The Government are gathering insights from the rural mobility fund pilots and are developing best practice guidance—a comprehensive resource for setting up and managing DRT schemes.

Beyond that, the Department’s support programme includes a focus on rural-specific challenges, such as the dedicated Bus Centre of Excellence’s conference on quality bus services in July and our plans for franchising pilots. The Department understands that there are barriers to SMEs accessing franchise networks. That is why we are listening to the sector about ways to ensure that disproportionate paperwork requirements do not hinder SMEs bidding for franchising contracts.