Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment he has made of the impact of inflation on rural bus services.

The Government recognises the importance of transport for rural areas and is committed to improving access to services that provide vital connectivity. The Government pays almost £260 million per year in Bus Service Operators Grant, which benefits passengers by helping operators keep fares down, and enabling operators to run services that might otherwise be unprofitable and could lead to cancellation.

The Government has also provided nearly £2 billion in emergency and recovery funding to local transport authorities and bus operators since March 2020 to mitigate the impacts of the pandemic on bus services and protect local bus routes. This includes an additional £130 million to continue support services until March 2023.

The Government does recognise that inflationary pressures, including rising fuel costs, are impacting operating costs of bus services across England. Recovery funding provided to LTAs from April this year has accounted for forecast inflationary increases.