Government Support for Bus Services: West Dorset

Simon Lightwood Excerpts

Wednesday 8th July 2026 Westminster Hall

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

It is a pleasure to serve with you in the Chair, Ms McVey. I congratulate the hon. Member for West Dorset (Edward Morello) on securing this important debate. He has been a committed champion of bus services and transport needs in his constituency, and I thank him for the constructive tone with which he has approached these subjects.

Buses are at the heart of our vision for better and more integrated, reliable, affordable and accessible public transport. The Government have set out an ambitious plan to deliver better bus services, grow passenger numbers and ensure that communities that have too often been underserved can benefit from reliable public transport. Of course, there is no one-size-fits-all approach to local bus services. That is particularly the case in rural areas such as West Dorset, where there can be additional challenges to running a good local bus service.

The Bus Services Act 2025 puts decision making into the hands of local leaders across England, including in rural areas, so that they can determine how best to design their services for their communities and have greater control over routes and timetables. As the hon. Gentleman knows, since he was on the relevant Bill Committee, it expands the options available to local authorities, allowing each area to pursue the model of bus service delivery that best suits their needs while safeguarding the needs of passengers. The Act also tightens a requirement around the cancellation of vital bus routes, particularly those relied on by vulnerable and disadvantaged passengers. The Government are committed to monitoring the effectiveness of those measures, including the impact on rural services, with a review five years after their introduction.

We will provide meaningful financial support to improve bus networks totalling more than £3 billion over the next three years. That includes nearly £700 million per year for local transport authorities through the local authority bus grant. That funding can be used to support the introduction of new routes; for more frequent services; for safer, better, more accessible bus stops; for new electric buses; and for improved real-time information so that passengers can travel with greater confidence. It could also be used to increase the provision of community transport, for instance.

At the end of last year, we published individual multi-year settlements for local authorities under the local authority bus grant for the next three years. As the hon. Gentleman said, those allocations were determined by a new, revised formula. Gone are the days when it was a competitive funding bid—each local transport authority now receives funding. For the first time, the formula considered rurality to ensure that rural areas are not disadvantaged. Other parts of that formula include population size, levels of deprivation and the extent of current bus services.

I hear what the hon. Gentleman was saying about not just protecting what is there, but going further and building back. He has my assurance that we will continue to look at that funding formula to make sure that it is the fairest possible way to distribute funding across the country. We have already allocated multi-year settlements for the next three years, so it would be after that period. I am pleased to confirm that Dorset council will receive slightly over £12 million through the local authority bus grant for the next three years. That is nearly £200,000 more per year than the allocation in 2025-26, or roughly a 5% increase. Under the local authority bus grant, local leaders will be able to invest in transport priorities that are right for their area, such as enhancing bus services in rural communities.

Alongside the multi-year funding, this Government’s bus reforms are fundamentally about giving local leaders more powers and more choice over how to deliver services. That includes unlocking franchising as an option for all areas. There is no one-size-fits-all approach. Different areas face different challenges because of their geography, population density and demographics. That is why work is under way to provide active support to local transport authorities that wish to explore franchising, particularly in rural areas.

The work includes our bus reform and franchising pilot programme, which supports authorities with feasibility assessments for bus franchising. The programme is designed to test different types of franchising model to understand how they could be best implemented to deliver improved bus services for passengers in rural locations. Case studies, guidance and templates from the programme will be shared with other local transport authorities, ensuring that learning is captured and can support other areas considering franchising. These products could be particularly important for small towns and rural communities, including in West Dorset, where members of the community may rely on buses as their only realistic public transport option.

We also know that in some areas, traditional stopping bus services may not be viable. We want to encourage local leaders to consider a range of options to deliver better services for passengers. That includes incorporating demand-responsive transport and community transport services into the local transport network. DRT has the potential to improve local transport in areas where demand is more dispersed over longer distances, which makes it harder to provide conventional fixed-route services that meet residents’ needs.

Our franchising guidance outlines key considerations for LTAs exploring franchising regarding DRT, including how local bus services integrate with alternative models such as DRT. We have recently published guidance on best practice for local authorities to set up and deploy demand-responsive schemes, from planning and procurement through to launching and sustaining those services.

Making bus fares more affordable is one of the Government’s transport priorities because that really matters to passengers. The Government continue to cap single bus fares at £3 on thousands of routes in England, outside London, until March 2027, helping millions of people access affordable travel and better opportunities. That cap can be particularly beneficial for rural passengers, helping to limit the cost of journeys where single fares can otherwise be significantly higher.

The Chancellor went further in May, announcing more than £100 million additional funding for the bus sector, to help children travel free this summer, and to continue supporting services. Under the offer, children aged five to 15 will be able to travel free on participating local buses in England throughout August, helping families to get out and about for less, at a time of increased cost of living. Further details will be announced shortly.

To pick up on the point about better integration, I draw Members’ attention to a fantastic read—“Better Connected”, the Government’s integrated national transport strategy. That looks at how to dovetail buses with trams, trains, micromobility and active travel. I highly encourage Members to take a look at that, because we recognise the challenges they have mentioned today.

[Adam Dance]

My biggest concern is that we have no electric buses in Yeovil. There is nowhere to charge them because other depots have been shut down. How will we cope with an electric future if First Bus is closing depots?

[Simon Lightwood]

That will be a commercial decision for First Bus about whether to invest in those services. The option remains for local leaders to consider whether they want to pursue franchising and take greater control over that issue. They could also lift the ban on establishing new municipal bus companies. There are options there. I will continue to work across Government to ensure we get grid connections for future deployment of electric buses. Funding from local authority bus grants and other sources can be used to purchase electric buses.

In closing, I reiterate my thanks to the hon. Member for West Dorset for securing this debate, and to the other hon. Members for their interventions. Improving bus services, importantly in rural areas, is central to the Government’s mission to drive growth and opportunity across the country. We know there is more to do, but we are taking meaningful steps to ensure that wherever people live—in a city, rural area or small town—they have access to the reliable, accessible and affordable transport that they deserve.

Question put and agreed to.