Bus Franchising

16:57:00

With Permission, Mr Speaker, I wish to make a statement. Today marks the first stop on this Government’s journey to deliver better buses. Day in, day out, buses shoulder the needs of millions of working people across the country, whether they are getting to work or school, or seeing the doctor or friends. A reliable bus service is the difference between aspiration and isolation, between getting on and being forced to give up—a lifeline, plain and simple. But over the past four decades of deregulation, that lifeline has been on life support. Communities have suffered cuts to thousands of services, with 1.5 billion fewer journeys taking place in 2019 than in 1985, when deregulation began. Since 2010, a staggering 300 million fewer miles have been driven by buses per year. That is the legacy the previous Government left behind: a shocking decline in this country’s bus services, which has done untold harm to communities across the country. Behind those stats lie human stories—of the poorest groups, who catch 10 times as many buses as trains, regularly let down; of people denied access to work or education, because they cannot depend on the journey there; or women and girls denied access to a safe journey home. They represent a steady cycle of decline that reverberates beyond buses to our economy as a whole, and of public services not working for working people. Enough is enough. This mission-focused Government were elected to repair what is broken, and to reform what does not work. We are clear about the fact that better buses are essential to a better Britain, and that buses are a route not just to connection but to economic growth, cleaner air, and a fairer chance in life for everyone. That is why my right hon. Friend the Transport Secretary has made fixing this country’s broken bus network one of her top priorities in her Department, and it is why, just two months into office, we are kick-starting a bus revolution that will put services back into the hands of local leaders, achieving in just 10 weeks what the last Government failed to achieve in more than 14 years. The statutory instrument that we laid this morning opens up bus franchising for all local transport authorities in England. It gives local leaders more flexibility to adopt a model that works for their areas, and because we are streamlining the current two-step process, authorities will now only need to obtain the Transport Secretary’s consent before preparing a franchise scheme. This is a transformative change, one that will give every community the same powers that mayoral combined authorities across the country are currently using to deliver better services, along with the power to match them to local needs. We know that the franchising model works: we need only look at the Bee Network in Greater Manchester, where buses were brought under public control just one year ago and where reliability has already improved, passenger numbers have already grown and a new 24/7 service has just been introduced; or at Greater London, where public control has meant that more bus journeys are now taken in our capital than in the rest of England combined. We are taking aim at the current postcode lottery of bus services to ensure that our most popular form of public transport starts running in the public interest. Local authorities know best how to deliver for their communities, which is why today we are empowering them to follow in the footsteps of Greater Manchester and London, to ensure that they have buses in the right place at the right time, truly serving local needs. Our plan will help to turn the tide after decades of decline. The statutory instrument will be backed by a public consultation, which my right hon. Friend the Transport Secretary also launched today. It seeks views on breaking down the barriers to franchising, and on how we can support safer and more accessible services. By delivering simpler guidance, it will support and speed up the franchising process, meaning that councils will spend less time and money filling in forms, and more time planning routes and prioritising the interests of the communities that they serve. However, this is just the start of our journey. Today’s steps pave the way for a new bus Bill later in the current parliamentary session—a Bill intended to reform funding, to allow franchises to be rolled out to more places more quickly and cheaply, and to support councils that choose not to franchise but still want the flexibility to deliver on local transport priorities. The Bill will also allow us to remove the ideological ban on municipal bus companies that was imposed by the last Government despite the huge success of those companies, which can be seen across the country where they are still in place—for instance, the award-winning publicly owned services in Nottingham and Reading. This, rightly, is not a one-size-fits-all approach, and, crucially, it places no additional burden on taxpayers. It simply acknowledges a truth with which many in the House will agree: that the best decisions are not always made by Whitehall, but are made in town and city halls throughout the country by those who are accountable to local communities, and by those who, day in day out, use the very services that we are talking about. It has been said before, and I will say it again: under this new Government, the Department for Transport is moving fast and fixing things. Today’s steps place better buses at the heart of this Government’s plan for change. Four decades after buses were deregulated, and after 14 years of decline, we are now empowering communities to take back control of the services on which they depend—to get Britain moving, to get our economy growing and to get more passengers, wherever they live, back on board. I commend this statement to the House.

We come to the shadow Minister.

I thank the Minister for his statement. We on this side of the House are in full agreement that good local transport is something that everyone deserves access to, both for helping people to live their lives and for fulfilling the economic potential of all parts of the country. At the heart of our local transport services are buses. They are some of the most convenient, well-connected and accessible forms of public transport out there—crucially, not just in urban areas, but very often in under-connected rural areas. That is why, in government, we invested billions of pounds in the bus sector, including the vital support provided to maintain services during the pandemic. We rolled out thousands of new zero-emissions buses and introduced the “Get around for £2” scheme, saving millions of people money on their fares and helping to get passengers back on buses. Those interventions worked. Bus passenger journeys in England increased by nearly a fifth in the year ending March 2023, and we welcome this Government’s desire to build on our progress in order to improve services further, to get more routes running at better frequency, and to make sure that as many people as possible have reliable services that get them where they need to go. I am genuinely interested in understanding how the Government feel that this set of measures will achieve that. We are worried about some of the significant risks, which the Government do not seem to have considered. This legislation places greater responsibility in the hands of local authorities. We know that a number of local authorities face financial and organisational challenges, and although I do not doubt that there will be enthusiasm for making use of the new powers, running any form of public transport brings real challenges. Of course, as the Minister said in opposition, gaps in experience could be filled by support from the Department for Transport, but depending on the number of local authorities that choose to take up franchising, this could mean that significant central Government resources are required. Unless I have missed something, today’s announcement includes absolutely no funding to pay for increased capacity at the Department. What projections have the Government made of the costs, and how exactly do they expect them to be paid? It is the same story with local government finances. Make no mistake about it: this is going to cost money. Many bus routes, especially rural services, are loss making, even before we account for the additional resources that local authorities will presumably need to operate them. In his statement, the Minister did not recognise the enormous challenges that have been created by changing travel patterns post covid. If this Government are committed to providing services at 1985 levels, as he seemed to imply, they will need to commit to enormous levels of subsidy. I welcome the success stories in metropolitan areas that the Minister talked about, but such services operate in a fundamentally different space, because of the density of those areas’ populations. It means that if passenger numbers fall next year, the financial risk will be taken on not by a private company, but by the local council and, by definition, taxpayers. Again, given that there appears to be no funding attached to the policy, surely it can be funded only by increases to council tax or cuts to other local services. It is the same story when it comes to responsibility for capital expenditure. Will this now be the responsibility of local authorities? How exactly are they expected to fund it? As we recently made clear when debating the Passenger Railway Services (Public Ownership) Bill, it might be the Labour party’s priority to undertake ideological reforms to bring the transport sector further into the control of the state, but passengers’ priorities are the price, performance and reliability of services, not who is running them. We want to hear how the reforms will make a difference to passengers’ journeys and their accessibility, frequency and cost, and how they will help to restore the number of rural services and make journeys cheaper for passengers—and not just through the generic pledges we have heard today, but through concrete commitments on which the public can hold the Government to account. The Minister made absolutely no commitment to increase levels of services or miles travelled as part of the Government’s “revolution”. There are some simple things that the Government could do for passengers, such as extending our “Get around for £2” scheme, which has been hugely positive for passengers and for the viability of services up and down the country. I am aware that the Chancellor is not Labour Members’ favourite person at the moment, but I encourage them to make the case for the cost-of-living benefits of the £2 scheme, as well as for the benefits of the winter fuel payment, in any hurriedly organised meetings today and tomorrow. The Government have got the wrong priorities yet again. At the end of the day, passengers care about the preservation of existing services, the extension of routes, improvements in frequency and reliability, and cost. We on this side of the House are all ears when it comes to what difference this policy will make for them and—not to be forgotten—who is going to pay for it.

Modernising our transport infrastructure and delivering better buses are at the heart of our plan to kick-start economic growth in every part of the country to get our country moving. This statutory instrument is just the start of a package of measures; the buses Bill will deliver further measures on issues such as funding. Despite the challenging financial circumstances we find ourselves in—inherited from the previous Government—we are determined to deliver better bus services, growing passenger numbers and driving opportunity to underserved regions. All funding is rightly being considered as part of the spending review. There is no one-size-fits-all approach for buses within local transport authorities. Franchising is just one way that this can be explored; there are also enhanced partnerships and municipal ownership. We firmly believe that our priorities to deliver better buses across the country are the right priorities, and we have the mandate from the British people following the general election to do just that.

Last week and this week have been the best two weeks for public transport for many decades, righting the wrongs of the privatisation of the rail service and the deregulation of buses. I did not hear an apology from the Conservative spokesperson for laying waste to local government finance over the last 14 years and destroying public bus services by handing them over to be run by profiteers, pirates and other completely unsuitable people—not in all, but in many cases. Does my hon. Friend agree that there should be a massive apology from the Conservatives for the damage they have done to public transport?

I believe there should be a massive apology from the Opposition for the mess they have left this country in and for the mess they have left our bus services in. Following the previous Government, almost 300 million fewer miles are now driven a year compared with 2010. That is an appalling statistic. This Government will turn the tide for communities across the country by giving them the opportunity to control local bus services and to have a real say in developing the local transit systems that serve them. The Secretary of State said—I will say it again—that we will move fast and fix things. Here is the proof.

I call the Liberal Democrat spokesperson.

We Liberal Democrats welcome today’s statement to give local authorities, not just metro Mayors, more powers and the potential to run their bus services. We Liberal Democrats have campaigned for exactly that for a very long time. The previous Conservative Government completely decimated local transport systems, but the rot set in a long time ago. Almost a quarter of bus routes have been cut in the past 10 years outside London. Whoever wants to apologise for that, we need to see some change. Bus services should be the most affordable and accessible of all forms of public transport. Good, well-used bus services would significantly contribute to getting to net zero and to improving our air quality. The previous Government, again, completely failed to make a positive case for that. Not only are public buses crucial in urban areas such as Bath, which suffers from more and more congestion, because people can continue to increase their use of motorised individual travel, and is also still struggling with cutting air pollution; bus services are also important specifically for rural areas. What we currently have is completely inadequate, so will the Minister set out how today’s announcement will improve rural bus services, not just in the long term, but in the short term?

The ability of local areas and local transport authorities to take back control of their bus services is crucial for rural areas, because they know their communities best. Those decisions should not be made from places in Westminster or Whitehall. Again, local transport authorities understand the specific needs of their local communities, be they rural or urban, and are best placed to make those decisions and design the network around those needs.

I welcome the statement and draw to the Minister’s attention the Transport Committee report, “Bus services in England outside London”, which was produced under the chairmanship of my hon. Friend the Member for Nottingham South (Lilian Greenwood), who is now Under-Secretary of State for Transport. There are some excellent recommendations in there. In regions such as Greater Manchester, the process of introducing bus franchising has been quite lengthy. Granting combined authorities the ability to directly award contracts would significantly shorten that timeline, allowing areas such as the north-east to bring about faster improvements. Will the Minister confirm that the better buses Bill will include provisions for direct award powers?

I can confirm that my officials are investigating the means to do just that, and I will update the House accordingly as progress continues.

I welcome the Minister’s statement. He and the House know that local government finance is under pressure, and that the delivery of services in rural areas is much more costly than it is in Manchester, Nottingham or London. That is just a geographical fact, which I think we all accept. May I urge the Minister, if he has not already done so, to engage the good offices of the County Councils Network, as the lead body for county councils and the unitaries, to find their views and suggestions? I also say to him politely that if this is to work in rural areas, for all the good reasons that he sets out about social mobility and access to work and education, rural councils will require some extra money to deliver what we all want to see achieved.

I thank the right hon. Gentleman for his question and for his constructive engagement. I will certainly take up his recommendation to meet that grouping. Of course, all funding is being considered in the round as part of the spending review, but I take his points on board.

I very much welcome the Minister’s statement. Deregulation has been an absolute disaster in South Yorkshire. Since 2010, bus passenger miles have fallen by 50%. That means lots of people are not getting the services they previously had. The Minister has referred to Greater London, which gets more than 10 times as much Government finance per head for transport as South Yorkshire. He also mentioned Greater Manchester. Manchester got a very good bus service improvement plan—BSIP—settlement last time round. South Yorkshire got nothing in the BSIP settlement. Does he recognise the need to review some of these settlements? Otherwise, Mayor Oliver Coppard, who is committed to franchising, might see that the only responsibility they have is to make the cuts to bus services in a different way from what would have been the case without franchising.

There was a host—a plethora—of different funding pots relating to buses, and we are keen to amalgamate and consolidate them, but also, importantly, to devolve them to local areas so that they have the funding flexibility they need to deliver better buses across their areas.

It is great to hear of the success the previous Government’s £1.1 billion investment into Greater Manchester’s Bee Network is helping to deliver. I was delighted to launch it with the Mayor of Greater Manchester. As the Minister mentioned, one of the key things about the postcode lottery is the cost of using the bus. It can really put people off, particularly in rural areas where bus costs have traditionally been a lot higher. Is the Minister going to look at extending the Get Around for £2 scheme, which has been a real success, particularly for access to education opportunities and for those in lower paid work in rural areas? It has really helped to drive bus passenger numbers upwards since the end of the pandemic.

Delivering reliable and affordable public transport services for passengers is one of the Government’s top priorities, and we know how important it is for passengers and for local growth. We are looking at the future of the £2 fare cap as a matter of urgency. We are considering the most appropriate and affordable approach, and we will update the House in due course.

For as long as I have been a Member of this House, my constituents have looked upon London with envy for one reason, and one reason only—its cheaper and more reliable bus services with real-time bus information. Too often, my constituents do not even know if a bus is coming to the bus stop, never mind when. Kim McGuinness, our regional mayor, has committed to taking back control of buses. Can the Minister set out how he will work with her and support her to deliver the bus services that my constituents need and deserve after 14 years of Tory failure?

I have already met the Mayor of the North-East on a number of occasions, and I am working closely with combined authorities and mayors across the country to make bus franchising simpler and easier. We will, of course, make sure that the Department for Transport provides support to local transport authorities, with a centralised resource to ensure that we spread best practice across the country.

I thank the Minister for his statement. The town of Bordon in my constituency is extraordinarily poorly served by bus routes, and it is crying out for a rail link bus service to the neighbouring town of Liphook. Will the Minister and his officials meet me to discuss how we can get a rail link bus service from Bordon to Liphook?

I am more than happy to meet any hon. Member.

I welcome the statement, as will my constituents in Scarborough, Whitby and the villages who have seen the vital bus services on which they rely slashed over recent years. For example, cuts to the 95 Sleights to Whitby service have severely restricted my constituents’ ability to go about their daily lives. Does my hon. Friend agree that we need to move at pace to improve such routes in rural and coastal communities?

I completely agree. This is fundamental to the work we have been pursuing to make franchising quicker and simpler, and to avoid the need for local transport authorities to spend their time filling in forms at great expense. Britain is one of the few places in the developed world that hands operators power to slash bus services and set fares with very little say for the communities that depend on those services. Decades of failed regulation have left communities with little say on the essential services on which they rely, and we are determined to change that.

As my hon. Friend the Member for Bath (Wera Hobhouse) said, the Lib Dems broadly welcome the principle of this statement, as I think will the Somerset Bus Partnership. The volunteers of this fantastic organisation in my constituency work tirelessly to encourage people to use buses. Somerset council is facing an historic funding crisis and has narrowly avoided bankruptcy, so I am keen to understand how the Government will provide long-term funding so that such authorities can do the franchising that has been promised.

As I said, we are looking to consolidate and simplify the funding pots for bus services, and we hope to deliver more multi-year funding settlements.

I welcome the statement. The Minister is genuinely taking control of our buses after years of the wheels on the bus not going round and round. I look forward to seeing the return of a direct service from Runcorn to Liverpool. Will the Minister meet me and leaders in Cheshire to discuss taking control of bus service arrangements through a new devolution deal?

I would welcome the opportunity to meet my hon. Friend.

I thank the Minister very much for a progressive, positive statement that will encourage many. I welcome the steps towards a more personalised approach to bus franchising. However, I believe it is essential, as I think the Minister does, that any changes should be rural-proofed to ensure that bus services allow our rural communities to commute to work, to access medical appointments and even to go shopping, by protecting services over profit through an iron-clad guarantee. Will he confirm that this is the Government’s position?

I absolutely agree that rural bus routes and rural communities must be carefully considered. The best people to take that consideration are local leaders, which is why we are determined to allow local leaders to take back control of their bus services.

I welcome my hon. Friend’s statement. Villages in my constituency, such as Eccles, Burham and Wouldham, have suffered from 14 years of Conservative cuts and a reduction to the 155 bus service, which many elderly people rely on. Will the Minister assure councils such as Medway council and Kent county council that they can now join forces and collaborate on bus routes, so that we see an improvement to bus services for all our residents, including those in rural, isolated communities?

The plan makes it possible for all local transport authorities to take back control of their buses. There is also the option of enhanced partnerships and municipal ownership. I look forward to working with my hon. Friend to achieve his objectives.

Buses are the most used form of public transport and a lifeline for those on lower incomes. The inadequacy of bus services across Doncaster East and the Isle of Axholme is an issue that comes up regularly on the doorstep. Hatfield Woodhouse only recently had its bus reinstated after many months of having nothing at all. Does my hon. Friend agree that delivering better buses will be essential to the Government’s missions, from growing our economy to breaking down barriers of opportunity and accelerating to net zero?

My hon. Friend is absolutely right. Effective public transport, including bus services, is fundamental to delivering many of our missions in government.

At the weekend, I had the pleasure of attending the unveiling of two brand new community-owned green buses in the village of Middle Barton in my constituency. After 14 years of devastation to public bus services in Oxfordshire, such community-led schemes can go a long way to filling the gap. Does the Minister agree that a decade of renewal promised by this Labour Government must see an improvement and regeneration in rural bus services?

Absolutely. We want to give local transport authorities and leaders the power to take back control of bus services, to shape the future of those services to accurately reflect the needs of individual communities.

I thank the Minister for his statement—we should speak about buses much more often in this place. Edinburgh has an award-winning bus service, which carries 2 million passengers per week. Its highly unionised workforce—I think over 90%—works in collaboration with the directors of the company. We already get around for £2 inside Edinburgh because that is the price people pay no matter how far they travel inside Edinburgh. That is a fantastic example of what public ownership in public transport can do. Does the Minister agree that more ownership and control of bus services are key to driving down costs for passengers, increasing patronage and hitting our net zero goals?

I agree with my hon. Friend. I was pleased to visit a municipal bus company in Nottingham; the Under-Secretary of State for Transport, my hon. Friend the Member for Nottingham South (Lilian Greenwood), represents that area. I was blown away by the company’s knowledge of and commitment to the local area, and its having received numerous awards, with a satisfaction rating of something like 89%. Municipal bus companies are also a fantastic option for local authorities to consider.

It was interesting to hear the Opposition Front-Bench spokesperson talk about the importance of preserving existing bus routes, when their party had presided over 14 years when thousands of bus services were lost to communities across the country, including in my constituency, where we still do not have a direct bus route from Nantwich to our local hospital. It has taken this Government just 10 weeks to present a plan to fix local bus services. Does that not epitomise how underserved our communities and local economies have been by 14 long years of Conservative government?

I could not agree more. The Government’s plans are the biggest reform of England’s bus system in 40 years, putting power in the hands of communities who need it the most. Today’s announcement is a vital first step to achieve that.

It was great to visit the First Bus all-electric depot in York the other week, but I was saddened to hear just days later that First had withdrawn children’s monthly bus passes. After meeting representatives of the company, they are reviewing that decision, but does my hon. Friend agree that travel to and from school should be affordable? Will he meet me to discuss the future of buses in York?

Of course I want to make sure that bus fares are affordable. I will meet my hon. Friend to discuss his particular circumstances.

As has been said, the past 14 years of Conservative Government have left local bus services, especially those in coastal communities, in a shocking state. In East Thanet, the 33, 34, 9 and 8A bus services have all been drastically cut, meaning that in certain areas of Broadstairs and Ramsgate there is no bus service at all within easy reach, and no one in either town has access to a bus to Canterbury outside commuter times. Conservative-run Kent county council must take up the powers that are being offered by this Government to serve disadvantaged communities such as that in East Thanet.

Buses matter to millions of people, but 14 years of the Tories’ broken bus system have led to countless communities being failed and a spiral of decline in bus services. I hope all local transport authorities consider the range of options available to them to take back control of their buses and shape services for the communities that they serve.

After the deregulation and decline of buses under the previous Administration, I imagine that local authorities are somewhat shocked and surprised at being given the opportunity to shape services genuinely in the public interest. What additional support is my hon. Friend considering to empower local authorities, especially smaller district authorities such as Rugby borough council, so that they can move fast and fix things locally?

I thank my hon. Friend for his question. We are increasing the capacity of the Department for Transport to assist smaller authorities, so that all local transport authorities can consider franchising and other means of improving bus services in their communities.

I thank the Minister for his statement. I am pleased to see him driving forward this policy to improve our bus services, which are a vital lifeline for my constituents in Burton and Uttoxeter. Does he agree that this plan puts us on the right route by expanding franchising powers so that local voices can finally steer bus services in the right direction?

I thank my hon. Friend for his question. He has already been a fierce advocate for public transport and bus services in his constituency. Local leaders, not private operators as is currently the case, will have the power to set routes, fares and services, putting passengers first after decades of regulation. That is the option available through franchising. Municipal ownership is also an option, as well as partnerships with operators and local authorities.

As the Minister has already pointed out, and others in this Chamber have said, bus franchising has clearly delivered fantastic results where it is already in operation in Greater Manchester and London, but it will not be right for all communities. In my constituency, there are often only two buses a day connecting the outlying villages to Dartford and other population centres. Does he agree with me that the upcoming bus Bill will be a fantastic opportunity to end the postcode lottery of bus services across the country, providing maximum flexibility to local leaders, such as those in Kent if they are prepared to use it, to choose the right system for their populations?

I agree with my hon. Friend. We must turn the page on years of Conservative failure in local transport, which is why the forthcoming bus Bill, in conjunction with our announcements today, will help end the country’s transport postcode lottery.