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Bus Funding
18 November 2024
Lead MP
Louise Haigh
Debate Type
Ministerial Statement
Tags
EconomyTaxation
Other Contributors: 37
At a Glance
Louise Haigh raised concerns about bus funding in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
With the House's permission, I am updating on our plans for better buses in England outside London. Buses are crucial to the economy and society, carrying over 3.4 billion passenger journeys each year. The current situation is dire due to decades of failed deregulation, resulting in poor service reliability, fare hikes, and reduced miles driven since 2010. In response, the Government committed more than £1 billion in funding last month's Budget, including over £700 million for local councils and £243 million for bus operators. This will protect vital routes, improve services, keep fares down, and enhance accessibility and safety. Additionally, we are capping bus fares at £3 to prevent an 80% price rise in rural areas from next year. We aim to overhaul the funding allocation process to prioritise local needs and end inconsistent funding. A landmark buses Bill will be introduced soon to enable councils to adopt franchising models for better control over services, aligning routes, fares, and timetables with passenger needs.
Gareth Bacon
Con
Orpington
Question
How can the Secretary of State assure that the allocated funding will improve long-term bus service quality and align with future franchising plans?
Minister reply
The Government is taking a fundamentally different approach by allocating funding based on local need, population, distance buses travel, and levels of deprivation. This ensures taxpayer money goes to areas most in need, ending the postcode lottery for bus services.
Gareth Bacon
Con
Orpington
Question
Asked about the alignment of allocated funds with long-term franchising goals, questioning whether the Government's approach is short-term and if the £3 cap will be extended beyond 2025 as per manifesto promises.
Minister reply
Defended the allocation based on need rather than competitive bidding, emphasised the failure of Tory deregulation over decades, and highlighted ongoing reforms to ensure better bus services across England.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
Question
Welcomed funding for her constituency and questioned whether a Labour Government was necessary to understand the value of public transport.
Minister reply
Acknowledged the importance of record funding for most areas, emphasising that there is no point in throwing money at a broken system without reform.
Paul Kohler
Lib Dem
Wimbledon
Question
Welcomed the funding but raised concerns about uncertainty around franchising opportunities and questioned the 50% increase in bus fares, highlighting potential negative impacts on ridership.
Minister reply
Confirmed plans to publish an evaluation of the £2 fare cap soon, promised urgent provision for local authorities to franchise services, and assured that new funding allocation will avoid picking winners and losers.
Laurence Turner
Lab
Birmingham Northfield
Question
Pointed out Conservative cuts to bus service operators grant and funding, leading to a decline in passenger numbers and bus services.
Minister reply
Agreed that Tory rule saw a significant drop in bus mileage and passengers, emphasising the current focus on reform alongside record funding.
Harriett Baldwin
Con
West Worcestershire
Question
Asked about the status of £209 million HS2 money for Worcestershire and its connection to local bus services.
Minister reply
Announced that Worcestershire will receive £9.4 million dedicated to local bus services, a £4 million increase on this year, confirming it can support improvements in services like those proposed for Malvern.
Steve Race
Lab
Exeter
Question
I thank the Secretary of State for the £11.6 million funding allocated to Devon's bus system and ask whether she agrees that Devon county council should take buses seriously.
Minister reply
We know franchising works; Greater Manchester’s experience shows increased revenues and passenger numbers, allowing them to lower fares. The Department stands ready to work with Devon and Torbay to ensure appropriate planning for their communities.
Sarah Dyke
Lib Dem
Glastonbury and Somerton
Question
The new funding is welcome but what are the conditions for spending it on bus-rail links in rural areas?
Minister reply
The allocation formula benefits rural areas, with a third dependent on bus mileage. Local transport authorities can decide how to spend the money on buses without central constraints.
Lauren Sullivan
Lab
Gravesham
Question
Will the £23 million allocated for Kent be ringfenced but flexible enough to support initiatives like KCC Travel Saver?
Minister reply
The funding will be ringfenced for buses, allowing local authorities flexibility to use it on concessions, new buses, or adding services as needed.
Mike Wood
Con
Kingswinford and South Staffordshire
Question
How can funding mechanisms encourage the integration of cross-boundary bus services?
Minister reply
We are considering this issue in the better buses Bill to ensure that passenger transport authorities properly integrate cross-border services.
Andrew Lewin
Lab
Welwyn Hatfield
Question
Will local powers be given to Hertfordshire to take back control of their bus systems?
Minister reply
The better buses Bill will extend franchising powers to every local authority that wants them, providing flexibility for different models suited to various communities.
Ellie Chowns
Green
North Herefordshire
Question
Is it time to extend concessionary bus travel to children given the high costs in rural areas?
Minister reply
The Department will consider extending a concession to young people next year, and local authorities should use some of the revenue funding for this purpose.
Zarah Sultana
Lab
Coventry South
Question
Why not maintain the £2 fare cap instead of increasing it by 50% to address economic hardship?
Minister reply
The combination of franchised powers and funding enables authorities to keep fares low, similar to Greater Manchester’s approach.
Saqib Bhatti
Con
Meriden and Solihull East
Question
Why wasn't the west midlands mentioned in the statement despite its reliance on buses for essential services?
Minister reply
The £50 million funding settlement for the west midlands will be transformational, meeting the needs of constituents.
Jonathan Brash
Lab
Hartlepool
Question
How can we get around a mayor blocking efforts to give the public control over bus services?
Minister reply
Tees Valley has done well with today’s funding. The better buses Bill lifts the ideological ban on public ownership, allowing local authorities to set up publicly owned companies if needed.
Wera Hobhouse
Lib Dem
Bath
Question
Why is the West of England Mayor preventing Bath council from franchising bus services directly?
Minister reply
Franchising enables designing necessary services, such as direct routes for schoolchildren. I encourage mayoral colleagues to take forward franchising.
Emma Foody
Lab Co-op
Cramlington and Killingworth
Question
For 14 years, the last Government failed communities with a lack of investment in our bus services, leading to fewer services, reduced timetables, increasing unreliability and, ultimately, less control. In 2023, in my area alone, tens of millions fewer bus miles were travelled than in 2010. Does the Secretary of State agree that our towns, villages and rural areas depend on our buses, and that the almost £24 million announced for the North East combined authority will turn the page for my community, which was let down so badly by the previous Government?
Minister reply
My hon. Friend is absolutely right. Particularly in rural areas, buses simply are not good enough. Entire towns and villages are cut off, with no bus service before 9 am or after 5 pm, and that leaves people with their ambition completely curtailed. I am really pleased to have been working with Kim McGuinness, the Mayor of the North East, to ensure that, through the better buses Bill, we speed up the franchising process and make available to her as quickly as possible the powers to deliver better buses for my hon. Friend’s constituents.
Llinos Medi
PC
Ynys Môn
Question
The Barnett formula comparability factor calculates how much money each devolved nation receives as a consequence of UK Government spending in England. Wales’s comparability factor for transport is now 33.5%, compared with 95.6% for Scotland and Northern Ireland. Can the Secretary of State confirm whether this unfair funding arrangement applies to the new bus funding, and will she say how much Wales would receive in cash terms if it had the same percentage share of funding as Scotland and Northern Ireland?
Minister reply
I will take away the hon. Lady’s specific question about the percentages and write to her, but I was pleased to meet Ken Skates, the Welsh Transport Minister, just a few weeks ago to talk about the Welsh Government’s own ambitious plans for bus franchising across Wales. They are learning the lessons from Greater Manchester and London, and ensuring that every constituent in Wales will be able to benefit from better buses.
Fred Thomas
Lab
Plymouth Moor View
Question
What a fantastic day for every person in Plymouth who uses the bus! We strongly welcome the Secretary of State’s announcement that £4.5 million will be invested in our buses over the next couple of years. She said that that represents an investment not just in buses, but in people and communities. That is fantastic to hear. Does she agree that today’s announcement represents the Labour Government investing in Plymouth?
Minister reply
I am very happy to confirm that we are investing in Plymouth, Plymouth’s people and Plymouth’s buses. Buses are an enormous engine of social justice, because, as I said earlier, the most deprived rely on them the most. I am afraid that is why they have been so badly neglected in this place for so long, but that will absolutely turn around under this Labour Government. Buses are my priority and this Labour Government’s priority.
Steffan Aquarone
Lib Dem
North Norfolk
Question
I refer the House to my entry in the Register of Members’ Financial Interests: I am a member of Norfolk county council. I am pleased that £15 million of the new funding will be heading to Norfolk to support our rural bus services, but the model for running buses in Norfolk is broken. We need a service that works for everyone, not just routes to and from the city and the occasional shopping bus. Will the Secretary of State assure me that this money will not just disappear into county council coffers or route subsidies, but instead help build the proper public transport network that North Norfolk needs?
Minister reply
The hon. Gentleman is absolutely right. Under the current system, money has been thrown hand over fist at operators, which have cherry-picked the most commercially viable routes, leaving local authorities to step in to subsidise the lifeline routes that people rely on. The benefit of areas being able to move to a franchised system, or indeed to set up their own publicly owned bus company, is that they can cross-subsidise properly across routes, and ensure that public money is spent in the best way and that we design routes and networks that really work for local communities.
Alice Macdonald
Lab Co-op
Norwich North
Question
On Friday I met members of the 17th Norwich scout group as part of UK Parliament Week, and they had lots of questions on transport. They are particular concerned about the reliability and availability of buses. Could the Secretary of State expand on how today’s announcement will support young people and how we can ensure that their voices are heard in this important conversation?
Minister reply
It is particularly important that we encourage young people on to buses, so that they can develop better behaviours and carry on using buses throughout their adult lives. I am delighted that we can confirm an additional £1.2 million in revenue funding for Norfolk. That revenue funding will be available to Norfolk to enable it to add additional services and improve the reliability and frequency of its local buses.
Steve Darling
Lib Dem
Torbay
Question
I would like to acknowledge the significant investment in my constituency and say how welcome this will be after Torbay’s first “bus back better” bid came back empty from the Conservatives. One of the issues that has led to significant cuts in our bus services is the recruitment of bus drivers. Can the Secretary of State advise us on how the Government plan to enhance the opportunities for the recruitment of bus drivers so that this money can be put to good use?
Minister reply
Torbay is a fantastic example of an area that has done well out of this funding settlement but was treated appallingly by the previous bus service improvement plan funding process. The hon. Gentleman is right to say that the recruitment of bus drivers is an issue that has plagued certain parts of the country, and we are working closely with the Department for Work and Pensions, through its “Get Britain Working” White Paper, to ensure that we can address recruitment and retention issues in the bus sector.
Jim Dickson
Lab
Dartford
Question
Just a few short weeks ago, when the new bus franchising arrangements were announced in this place, Conservative Members said that it would never work without funding attached. Now we have our answer, and the £1 billion of funding nationally and the £23 million of funding for Kent, which has already been mentioned, are hugely welcome and will certainly be a big boost for my residents in Dartford and also a big boost to our efforts to kick-start growth in the Thames estuary. Does the Secretary of State agree that boosting connections between our rural areas and our towns is vital to increasing access to jobs?
Minister reply
My hon. Friend is absolutely right. I get very frustrated in the transport policy space because we often think of investment only in big infrastructure as a mechanism by which to achieve growth, but buses are essential to delivering growth in local communities. They connect people to jobs, to opportunities, to education and to each other, so they are not only a massive engine of growth but one of the most important engines of social justice available in transport policy terms.
Claire Young
Lib Dem
Thornbury and Yate
Question
Many of my rural constituents have commented that the level of the bus cap is irrelevant when there are no buses to use, so I welcome the extra funding today, but does the Secretary of State agree that it should be directed to ensuring a minimum level of service for all users rather than increasing the frequency of services in urban areas that are already well served, as has happened previously in the west of England?
Minister reply
The hon. Lady is absolutely right. The biggest barrier to people getting the bus is the absence of a bus in lots of communities, and that is why we have directed this significant level of funding into communities to ensure that it is invested in local bus services. The benefit of moving to franchising means that we avoid adding more and more operators and more and more services to commercially viable routes, and that we can design a network that means that more areas and communities are served by the timetables and levels of service that they deserve.
Christopher Vince
Lab Co-op
Harlow
Question
May I take this opportunity to thank the Secretary of State for visiting the best town in the country, Harlow, this morning? I want to personally welcome the £17.8 million of funding for bus services in Essex, which is hugely important. Does she agree that the hidden benefit of improving our bus service in Essex will be to tackle social isolation, which is a particular issue in more deprived areas where there is no reliable bus service?
Minister reply
I was delighted to be in Harlow with my hon. Friend this morning to announce record levels of investment for Essex, another area that was badly underserved by the previous Government. Someone mentioned earlier that bus passenger numbers have been increasing since covid, which is true, but concessionary levels are still far below where they were before covid. I am afraid that potentially highlights the real issue of social isolation, and the hidden issue of older people not being able to access public transport. Only by delivering reliable, accessible bus services can we tackle social isolation and give older people the service they deserve.
Gideon Amos
Lib Dem
Taunton and Wellington
Question
The £6 million funding for Somerset is clearly welcome, although it is much less than was needed, considering that Somerset was rated as having the worst county bus service in the country. I particularly welcome the ending of the lottery that sets one community against another. Will the Secretary of State congratulate the Somerset bus partnership volunteers who, working with my Liberal Democrat colleagues now running Somerset council, prevented the previous Conservative county council from closing the park and ride, got night buses going and have begun a new transport hub since the bus station in Taunton was closed as a result of Conservative privatisation?
Minister reply
It sounds like the Somerset volunteers are doing a cracking job. I am very happy to congratulate them and to welcome the £6.8 million of funding announced for Somerset today.
Mark Ferguson
Lab
Gateshead Central and Whickham
Question
Under the last Government, the number of miles travelled on bus routes in the north-east fell by 30%, but that number also measures the region’s aspirations unfulfilled, the opportunities lost and the job interviews and family events that could not be attended. I very much welcome the near £24 million of funding given to the north-east in this announcement. How will the Secretary of State work with mayors such as Labour’s Kim McGuinness to ensure that the aspirations and opportunities of people in Gateshead are given flight by this announcement?
Minister reply
My hon. Friend is right that the 30% cut to his bus services is absolutely shocking. Behind every one of those cuts is a human story of opportunity and ambition curtailed. I have been working closely with Kim McGuinness on speeding up the franchising process. Under the current legislation, Andy Burnham took six years to bring a single bus service under public control, despite having been elected twice in that period on a mandate to do so. We want to ensure that we drastically speed up the process and reduce the cost to local transport authorities and mayoral authorities of getting to franchising, so that the money can be spent effectively on local bus services.
Helen Morgan
Lib Dem
North Shropshire
Question
Shropshire is one of the worst-served counties in England for public transport, having lost 63% of its bus miles since 2015, compared with a national average of about 19%. A person in Market Drayton who wants to get to the closest hospital in Telford, which is a 20-minute car journey, is looking at a five-hour round trip on the bus. We have only one service operating between Oswestry and Chester on Sundays. I am afraid that I was therefore quite disappointed by Shropshire’s £2.5 million revenue allocation in this round of funding. Will the Secretary of State meet me to learn about the huge transport challenges we face in Shropshire, and to see if we can do better?
Minister reply
I am delighted to confirm that Shropshire’s resource departmental expenditure limit allocation is £3.1 million, so the hon. Lady has already had a further £600,000 out of today’s statement.
Amanda Martin
Lab
Portsmouth North
Question
The Government’s biggest reform to England’s bus system in 40 years sees the people of Portsmouth having power put back into the hands of our communities. Today’s funding, the cutting of red tape and the ending of the postcode lottery will ensure that bus routes are where they are needed, allowing everyone to access work, medical appointments and social life. Can the Secretary of State inform people in Portsmouth North how the funding award and the landmark buses Bill—soon to be tabled—will support these welcome changes to truly put people first?
Minister reply
I am grateful to my hon. Friend for standing up, for Portsmouth and its people, as she always does. Today’s funding settlement will be ringfenced towards buses to ensure that Portsmouth gets both the level of funding it needs and, crucially, the flexibility and control to deliver it where it is needed most. Portsmouth will be able to avail itself of the powers we will announce in the coming weeks to take back control of its bus services and to deliver routes, services and fare levels that are right for the people of Portsmouth.
Josh Babarinde
Lib Dem
Eastbourne
Question
A few hours ago, I marched with Eastbourne residents such as Jodie Atherton, and Eastbourne businesses such as DB Domestics and the Rosy Lee café in Seaside, against Conservative-run East Sussex county council’s car-crash bus service improvement plan, after the council failed to adequately consult residents or properly model the impact of the plan. Will the Secretary of State review East Sussex county council’s catalogue of failure in this area, and will she introduce safeguards to ensure that community voices are at the heart of any bus service improvement plan that the money she has announced today will fund in my patch of Eastbourne?
Minister reply
The hon. Gentleman raises some important points. It is right that local people have the mechanisms and ability to hold their local authorities to account. One such mechanism that we will introduce through the better buses Bill is a local network safeguard, which will ensure that the voices of communities and constituents are at the heart of any changes to local bus networks.
Connor Naismith
Lab
Crewe and Nantwich
Question
I strongly welcome my right hon. Friend’s statement. Some £5.4 million will be delivered for buses in my area, which is a significant increase in real terms on previous years. When I met the chief executive of my local chamber of commerce, he said that the biggest barrier to growth in our area was poor public transport. Does my right hon. Friend agree that this investment, as well as the Government’s proposed reforms, are crucial if we are to break down barriers to opportunity and grow our economy?
Minister reply
My hon. Friend makes an important point. This Government have put improving public transport at the heart of our priorities in order to deliver growth and allow people to access opportunity. Colleagues from across the House will recognise the picture he painted because, time and again, they will hear that the biggest barrier many businesses face to widening their labour market and ensuring people can access opportunity is poor local transport. That is why we are so delighted to announce this transformational funding.
Sarah Gibson
Lib Dem
Chippenham
Question
I welcome the Secretary of State’s statement today that every region of England and Wales will benefit, especially rural areas and small towns. In Chippenham, large agricultural industries based in the countryside are currently having to find private transport themselves to get shift workers in and out of their businesses. The further education college has had to cap its hours because the last bus leaves so early that students cannot continue to follow a proper day’s work. This is a real problem for growth and skills in my rural constituency. Will the Secretary of State ensure that those counties that are not currently part of a wider mayoral system get the funding they need?
Minister reply
Colleges and large employers that use shift workers are two of the institutions that often raise with me their frustration about local bus services. The problem with the current system is that nobody has the ability to require operators to run services according to timetables or shift timings. The move to franchising will allow local areas to design such services and ensure that buses run when shifts finish or colleges open or close. The new funding formula model will ensure that rural areas get the funding they deserve.
Polly Billington
Lab
East Thanet
Question
My right hon. Friend will not be surprised to hear that I welcome the £124 million settlement for the south-east and the £23 million settlement for Kent, which represents the biggest proportion of any allocation in the south-east. It is striking that in the past 14 years there have been 20% fewer bus miles in Kent because of the last Tory Government. Will she join me in challenging Tory-run Kent county council to use this money and the powers offered to it by this Labour Government to make better buses services for places such as East Thanet?
Minister reply
My hon. Friend is a true champion for the people of Kent, and this is a record investment in them and their bus services. The area was badly underfunded by the previous Government and Kent lost out repeatedly in the bus service improvement process. The funding will help to deliver better bus services, but if Kent county council chooses to avail itself of the powers that will come its way as a result of next month’s better buses Bill, then that will be the moment when it can deliver a public transport network and better bus services that serve all Kent constituents.
Jim Shannon
DUP
Strangford
Question
I welcome today’s statement. Will the Secretary of State commit to ensuring that funding will go to UK-based bus manufacturers, such as Wrightbus in Northern Ireland, which are reliable and efficient, and whose clean-energy buses meet the needs of customers as well as our environmental obligations? How will she ensure that we support the best of British?
Minister reply
I was delighted to announce half a billion pounds of investment in Wrightbus just a few weeks ago. Those buses will make their way around the country and are fully electric—cleaner, greener, and providing a better service for passengers. We will announce some measures shortly to encourage investment in UK-manufactured buses. We have already announced the establishment of an expert panel in order to ensure that buses ordered in this country are built in this country.
Jonathan Davies
Lab
Mid Derbyshire
Question
I warmly welcome the announcement that over £40 million will be coming to the East Midlands combined authority, which covers Derbyshire and Nottinghamshire, for investment in our local buses. I know that Mayor Claire Ward and other local leaders will spend that money very effectively. Does the Secretary of State agree that this is an opportunity for people to get ahead in work, leisure and their social interactions, and will help us to get to net zero?
Minister reply
My hon. Friend is right that this is a massive moment for the east midlands, with the new mayoral authority and this record level of funding for bus services. Of course the authority will go into the 2027 city region sustainable transport settlements round. Buses are an enormous opportunity to meet all our missions. That is why I am pleased to work across Government on our mission boards to ensure that buses contribute to both our growth mission and, crucially, our net zero mission.
Sarah Coombes
Lab
West Bromwich
Question
Buses are essential in my constituency, which is why I am grateful to the Government for the £50 million invested in the West Midlands combined authority area. When operators cut services, such as the 46 bus that goes through Hamstead in my constituency, it is devastating for the community. After decades of failed deregulation, I am grateful that the Government are turning the page. Does the Secretary of State agree that it is much better for local leaders to have control over local bus services?
Minister reply
My hon. Friend is right: cutting services such as the 46 has real-world implications for people attempting to access work, see their friends and family, or get to the local high street. Having a franchised system under the Mayor, Richard Parker, will mean that he has control. He can contract out the 46 service and require an operator to run it. At the moment, when an operator cuts a service we have no say or control over that, which is what leads to those terrible real-world consequences.
Shadow Comment
Gareth Bacon
Shadow Comment
I thank the Secretary of State but note that the previous Conservative Government provided £4.5 billion to the bus sector since 2020. While funding is important, we need assurances that this money will improve long-term outcomes and align with future franchising plans. Concerns are raised about the effectiveness of increasing the fare cap from £2 to £3, which could cost users more and potentially reduce ridership on certain routes. Despite her arguments, it was a Conservative manifesto commitment to maintain the £2 cap for this Parliament. The shadow questions why she can afford additional funding without guarantees of success, especially as her push for bus franchising might compel local authorities into unprepared ventures, leading to worse outcomes for passengers.
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