Bus Funding

Viscount Hailsham Excerpts

Tuesday 19th November 2024 Lords Chamber

[Lord Hendy of Richmond Hill (Lab)]

I very much agree with my noble friend that a serviceable formula for the allocation of this money is a better thing to do, and to allocate some money to every local transport authority in England. The most damaging feature of all to bus services—which is a feature of the previous methodology of funding—is to have some money one year and no money the next. What happens in those circumstances is that supported services are withdrawn, the passengers disappear—either they cannot travel or they find some other method of travel—and it becomes much harder to re-establish those services. I will not bore the House with details, but I can find many examples across England of perfectly good services forced to be withdrawn because of the inadequate distribution of the previous funding. They are far more difficult to re-establish when funding turns up. The best thing you can have with a bus service is certainty of service over a long time.

[Viscount Hailsham (Con)]

My Lords, I go back to the question of increasing the cap to £3. In rural areas, such as I live, for a couple going shopping—for example, in Lincoln—several times a week, the cost would be quite challenging. Would the Minister reconsider limiting the uplift in the cap to, say, £2.50? It is a challenge for people in low-salary areas.

[Lord Hendy of Richmond Hill (Lab)]

The raising of the cap from £2 to £3 was entirely necessary because of the fiscal position that this Government inherited. A cap of £3 is actually a pretty good cap in rural areas with long bus journeys compared with the previous fare structures. We know that many fares have gone down by 60%, 70% or 80% for passengers. Of course, there will be some who have to pay more under this system. The subject in question—the distribution of local bus funding for the next year—is designed to make sure that there are services to travel on. It is not just bus fares that matter. What matters equally is that there are buses to travel on. This distribution will ensure that there are buses across the whole of England, in local transport authority areas, to do so.