My Lords, before I begin to address the amendments, I thank noble Lords for their continued contributions to the Bill. It remains clear to me that we share a common goal to improve bus services for passengers. This is precisely why the Government introduced this Bill: to empower local areas to design the bus services that their communities need, and to reverse decades-long nationwide trends in declining patronage and services.
Contrary to what the noble Lord, Lord Moylan, said earlier, there are real choices in the Bill for local transport authorities, and rightly so. Nor is the Bill a threat to good private sector operators in the way the noble Lord implies. He referred to the entrepreneurial period in my own career. He should note that it was very largely in the provision of contracts for one of these evil public sector authorities—none other than London Transport—that the company I ran made a modest amount of money.
Your Lordships have provided insightful views and challenge throughout the Bill’s passage through this House. As I noted in my letter to all Peers, the Government have taken the time to reflect on the arguments put forward by noble Lords to strengthen the Bill’s measures in detail. I will speak to amendments that have been tabled in my name during this session. It is my view that these amendments would improve the Bill, and I hope they will be welcomed by your Lordships.
I thank the Delegated Powers and Regulatory Reform Committee for the recommendations in its 13th report. I note that the Government have welcomed and taken on board the suggestions therein.
I will take this opportunity, if I might, to briefly update the House following an exchange in Committee about the Driver and Vehicle Standards Agency reporting channel for bus safety incidents and standards in the sector. I noted in Committee, in response to an amendment from the noble Lord, Lord Hampton, that this channel could be more user-friendly. I have since written to the DVSA, which has confirmed that it is in the process of updating all online reporting forms to improve accessibility and streamline the reporting process. Changes will be designed to allow direct reporting to the DVSA intelligence unit, including from the staff of operators, which should enable more timely interventions. Following updates to heavy goods vehicle reporting, the DVSA will be prioritising public service vehicle and coach reporting. This will include carrying out user research, to ensure that the revised forms enable the accurate and timely reporting of issues. I hope this is a helpful update and that it addresses any outstanding concerns about the adequacy of this reporting channel.
I thank the noble Lord for Amendment 1. This would place a direct requirement on the Secretary of State to have regard to improving the performance, accessibility and quality of bus passenger services in Great Britain as the main purpose of the Bill. As I stated in Committee, I understand why the noble Lord has drafted this amendment. I absolutely share the aim to achieve a better bus network that is more reliable, improves accessibility and performs well.
During the passage of what is now the Passenger Railway Services (Public Ownership) Act 2024, the noble Lords, Lord Moylan and Lord Gascoigne, tabled a similar amendment. At the time, I explained that the Secretary of State’s and the Government’s wider plans and objectives for the rail network included improving performance, but that this was not the sole purpose. I offer the House the same rationale for this Bill.
The objectives of the Bill of course include improving reliability, accessibility and performance; these are important aims. However, the Bill seeks to improve safety, provides local leaders with the powers to make the right decisions for their local areas, supports reaching net zero and puts passengers at the heart of what we are trying to achieve. To single out a limited number of objectives would undermine the message that the Government are trying to convey to local authorities, passengers, operators and the wider industry. I would not support this idea or place it in the Bill.
Extending this requirement across Great Britain, as the amendment seeks to, would presents significant difficulties with devolution. In tabling the amendment, the noble Lord appears to be seeking to apply all of the Bill’s measures across the whole of Great Britain. That would raise the potential of cutting across the powers of the Scottish and Welsh Governments to decide how to run their own bus networks and what is best for their local communities. I am sure noble Lords opposite would not want this outcome. As some noble Lords will be aware, the Welsh Government are due to introduce their own Bill into the Senedd in the coming months. I hope the noble Lord understands the reasons why I do not believe this amendment should stand, and therefore will withdraw it.
I will briefly address Amendments 2 to 8, in the name of the noble Lord, Lord Moylan, on service permits. As the noble Lord knows, the Bill introduces new tests which franchising authorities can use to assess service permit applications. These applications are made by operators seeking to run commercial services in a franchising area, including cross-boundary services. The new tests set out in the Bill give franchising authorities more scope to grant service permits. They do so by allowing authorities to consider a wider range of benefits that the proposed commercial services could provide, and then to weigh these up against any adverse effect on franchised services.
While some of the noble Lord’s amendments would remove these new tests and others would alter them, the impact would be the same: franchising authorities would be significantly restricted in their ability to take into account any adverse impacts on franchised services made by the proposed commercial service. This would open the door to authorities being compelled to grant service permits for commercial services which directly compete with franchised ones, undermining the coherence and financial viability of franchising schemes.
I underline again that I recognise the additionality that commercially operated services can provide and how they can complement franchised networks; that is why the Bill gives authorities more freedom to tap into this provision. However, these amendments would diminish franchising authorities’ ability to control their networks, and they would likely make franchising as a model unviable. This is not in the interests of places with franchising schemes or of providing all local transport authorities with a range of tools to deliver the best possible bus services.
Amendment 61, in the name of the noble Baroness, Lady Brinton, seeks to prevent bus services being provided in a manner which discriminates against disabled people. I hear the noble Baroness’s concern about the barriers that disabled people continue to face when making day-to-day journeys on local services, and I absolutely share her determination that they must be overcome. As she says, we have had several substantial discussions about this topic.
However, as I know the noble Baroness will be aware, Section 15 of the Equality Act 2010 defines the concept of discrimination arising from disability, and Section 29, in turn, places requirements on service providers to not discriminate against users, including where arising from disability. This already applies to operators of local services, as it does to local authorities. Furthermore, requiring authorities to ensure compliance with the duty contained in this amendment could only ever have effect where authorities exercise direct control over the day-to-day operations of bus operators—control which does not exist in relation to the vast majority of services, except in franchising.
Here, it would be helpful to clarify remarks I made in Committee. The Bill permits local transport authorities to decide whether to pursue bus franchising and enhanced partnerships, or to set up new local authority bus companies. No single model is mandated; that is a decision for local leaders to take. This is directly relevant to the points raised by the noble Baroness, Lady Brinton. Schedule 19 to the Equality Act 2010 makes local transport authorities subject to the public sector equality duty. These are listed as public authorities by that Act. That means, for example, that franchising authorities which have assumed responsibility for contracting their bus services are clearly within scope of the public sector equality duty.
Furthermore, noble Lords versed in the provisions of the Equality Act will know that an entity that exercises a public function is subject to the public sector equality duty. Therefore, any bus company that exercises such functions, which includes a local authority bus company, would be captured by the duty. This means that a new local authority bus company, enabled by the Bill, would be expected to consider the public sector equality duty whenever exercising public functions.
The situation is less clear-cut when it comes to enhanced partnerships between LTAs and private operators. As I have explained, bus companies are captured by the public sector equality duty to the extent to which they are exercising public functions—this would include privately owned bus companies. However, enhanced partnerships will include services that are commercial. Ultimately, it is not for me or the Government to determine what constitutes a public function—that is a question for the courts.
Therefore, although I am sympathetic to the noble Baroness’s concerns, I am unable to stand at this Dispatch Box and confirm that all bus operators must comply with public sector equality duty requirements even when not exercising public functions. In fact, to make private entities subject to the duty would be likely to require a substantial rewrite of the Equality Act. I hope that noble Lords would agree that this Bill is not the right place for that.