Question to the Department for Transport:

To ask the Secretary of State for Transport, what his policy is on local authorities creating new municipal bus companies in England.

The Bus Services Bill, which had its first reading in the House of Lords on 19^th May, sets out the Government’s policy regarding the creation of new municipal bus companies in England. Clause 21 of the Bill proposes to restrict the ability of local authorities in England to establish companies for the purposes of operating local bus services.

Government recognises the quality services that existing municipal bus companies provide for passengers, and these existing companies will not be affected by the provisions in the Bill. However, it is our view that the commissioning and provision of bus services should be kept separate, particularly as the introduction of new partnership and franchising powers in the Bill is likely to lead to more local authority control and influence of local services.