Question to the Department for Transport:

To ask the Secretary of State for Transport, what support her Department provides to local authorities to maintain bus routes with low commercial viability.

The Government is committed to delivering better buses throughout the country and wants to see an end to the decline in bus services we have seen in recent years. The Government introduced the Bus Services (No. 2) Bill on 17 December as part of its ambitious plan for bus reform. The Bill will put passenger needs, reliable services and local accountability at the heart of the industry by putting the power over local bus services back in the hands of local leaders right across England.

We know these plans need to be backed with funding and we have confirmed funding of £955 million for the 2025 to 2026 financial year to support and improve bus services in England outside London. This includes £712 million allocated to local authorities across the country of which the Tees Valley Combined Authority was allocated £7.2 million. Funding allocated to local authorities to improve services can be used in whichever way they wish to deliver better services for passengers. This could include subsidising services which are not commercially viable.

The Government reaffirmed its commitment to investing in bus services long-term in this Spending Review. On 11 June, the Government confirmed additional £900m resource funding per year from 26/27 to maintain and improve bus services. Local transport authorities will find out their individual allocations from this funding in due course.

In addition, the Government continues to make available around £244 million each year (in 2025-26, rising to £249 million in 2026-27) to fund the Bus Service Operators Grant (BSOG) and BSOG Plus. The BSOG is paid to operators of eligible commercial bus services and community transport organisations to help keep fares down and run services that might otherwise be unsustainable. BSOG Plus was introduced in July 2023 to provide further support in maintaining services to eligible commercial operators.