Bus Franchising

This Government are empowering every community to take back control of their local bus services. Legislation on bus franchising requires local authorities to consider small and medium-sized enterprises as part of the franchising process. We are working with those interested in pursuing franchising to develop different models, including smaller-scale models, which require less financial commitment and provide more opportunities for small and medium-sized bus operators to participate.

I am pleased to hear that this is part of the consultation on updating the bus franchising guidance. We have some strong local SMEs in Falmouth that provide a knowledgeable, local and flexible bus service, along with community bus services too. Will the Minister please confirm that she will be supportive of that kind of model when going through the guidance?

My hon. Friend is a great champion for businesses in her constituency. We recognise the important role that smaller local bus operators can provide in delivering high-quality bus services; they know their customers and their communities. In addition to the requirement to consider SMEs as part of the franchising process, this Government’s reforms to the bus system are designed to give more options to local communities to deliver local bus services. Our transformative buses Bill will seek to give local areas the choice of pursuing bus franchising, high-quality partnerships with the private sector or local authority-owned bus companies and, once in law, will provide more opportunities for all operators, including SMEs.

I thank the Minister for that answer, which is incredibly helpful. To support the participation of small and medium-sized local bus companies in bus franchising schemes, they also want to be energy-efficient. That enables them to apply for the franchises and do better. How can the Minister help those small and medium-sized bus companies to be energy efficient—with hydrogen buses, for example—and thereby gain the franchises and contracts?

Transport matters are devolved in the hon. Gentleman’s constituency, of course, but putting buses at the heart of our policies and wanting to increase ridership provides brilliant opportunities for local manufacturers of buses to take part and supports local manufacturers and operators.

I call the shadow Secretary of State.

On behalf of the Opposition Front Bench, I too offer my sincere sympathies to the family of the late Lord Prescott on his passing. On Monday, in her statement on bus funding, the Secretary of State said that a formula was being used to allocate funding. She said that the formula will allocate funding “based on local need, population, the distance that buses travel, and levels of deprivation…This formula and the funding allocated is a fair arrangement, ensuring that every area of the country gets the service levels it needs”.—[Official Report, 18 November 2024; Vol. 757, c. 43-45.] The formula, including the weighting given to the various factors by the right hon. Lady, has not been published. When will it be?

I thank the shadow Secretary of State for his question. We are proud of the work that we have done to ensure that every part of the country benefits from additional funding for their buses, and we will publish that later today.[Official Report, 26 November 2024; Vol. 757, c. 10WC.] (Correction)

The Secretary of State also said in her statement: “Councils such as Leicester, the Isle of Wight, Torbay and Cambridgeshire will see unprecedented levels of funding for services.”—[Official Report, 18 November 2024; Vol. 757, c. 42.] What levels of subsidy does she believe that bus services in those areas will require?

It is incredibly important that decisions about local services are taken by those who are operating them. That is why not only have we provided substantial levels of funding—£1 billion announced in the Budget and the allocations set out on Monday—but we are providing local transport authorities with the powers they need to provide the services that local communities want and deserve.