My Lords, it is difficult—in fact, impossible, really—for me to add meaningfully at this stage to the many personal and emotional tributes that have been paid by noble Lords to the late Baroness Randerson. I knew her since I entered the House, but only rather distantly as a figure who spoke authoritatively and compellingly from the Liberal Democrat Benches on the subject of transport. But over the last few months, as I have taken on this role, I have had the opportunity of getting to know her better. Indeed, if I may say so, I developed over that period a degree of affection for her rather shrewd sense of humour. Others know her a great deal better than I ever achieved, and I regret that I shall not have the opportunity to develop the growing personal regard that I had for her. We shall miss her very much.
I thank the Minister and his officials for the time that they have given to briefing me on this Bill. I thank all noble Lords who have spoken in this debate.
I turn to the Bill itself. Over Christmas, I had a message from a foreign friend asking me what it was like living in a socialist paradise, which led me to reflect a little on the nature of the Government. What strikes me about the Government, and it is present here again, is not really their socialism, though there is a degree of that; it is the fact that they are a Government who are almost solely and utterly focused on the public sector. The public sector is the solution to everything, and of course the policies of the public sector unions are determinative. So it is that we come to what is, in essence, a public sector Bill that is fundamentally driven by a rather narrow ideological approach. It is statist and anti-enterprise. It is also mildly nostalgic and backward-looking—a sort of return to the Attlee Government is essentially what we are being offered today.
Our first objection to the Bill, therefore, is that it is bureaucratic. It is anti-enterprise and, through franchising, it is likely effectively to snuff out a number of private sector businesses, which will be reduced to becoming not entrepreneurial entities at all but merely agencies of the state, operating to a fee and doing what the state instructs them to do in terms of routes, services and charging the fares that the state, through the local transport authorities, has set for them.
The Minister knows, from his time as the owner of a private bus company, the benefits to passenger service of private businesses. The noble Lord, Lord Snape, and my noble friend Lord McLoughlin drew attention to the decline in passenger numbers, and the implication that certain noble Lords appear to draw is that it is a consequence of private provision. The same noble Lords, however, do not give credit to the private sector for the massive increase in usage of railways under privatisation. In that case they are probably right as well, to some degree. The point is that both bus and rail demand are subject to stronger fundamental forces. That is the fundamental problem that the Government have in trying to revive the sort of 1950s vision of bus services that we see in this Bill.
The fact is that in the case of rail, the Government hope to benefit from a secular rise in demand for rail passenger services. In the case of buses, they can hope only to prop up what is in fact a secular fall, a decline, in demand for bus services. A number of noble Lords have pointed out that that is very expensive to do. The noble Lord, Lord Snape, gave some illustrations of how expensive it might be. It is a random example and many examples were developed, but one of the first examples given in the debate was by the noble Baroness, Lady Pidgeon, who referred to North Shropshire and the cuts in services there. Does anyone really imagine that those cuts can be reversed and restored without heavy public expenditure?
The Government’s chosen case studies, of which they are so proud, include London and Manchester. Going back to November 2024, shortly before her political demise, the former Secretary of State, Louise Haigh, wrote in the Sunday Mirror about London:
“This represents record capital investment to the majority of places and a once-in-a-generation reform plan that aims to deliver London-style buses to every corner of the country—including those areas that are usually overlooked”.
The noble Lord, Lord Snape, said it would cost £850 million a year to sustain London buses. The figure I have is £738 million a year in 2024 but we are in, as the Americans say, the same ballpark. If I may be so bold as to disagree with such an experienced transport commentator as my noble friend Lord McLoughlin, there has in fact been a reduction in bus mileage in London of approximately 5% under the current mayor. There was a plan to reduce it by 7%. I do not think the full 7% was delivered, but it was certainly of the order of 5%. This is palpable to those of us who live in or close to central London in particular. In the case of Manchester, the Bee Network celebrated its first year of franchised bus services in September 2024. Passenger journeys in Greater Manchester grew by 5% in the first year of franchising.
By contrast, however, in the year ending March 2024—I agree this is not exactly the same period, but it is the best overlap I can get—national bus passenger numbers grew by 7%, and those figures are taken from the Department for Transport’s official statistics. I might say also in the context of secular decline that that also illustrates how little can be learned from simply looking at one year’s figures. The idea that Manchester demonstrates a huge success—outstanding, apart from the rest of the country—because of franchising needs to be substantiated. It is not necessarily very persuasive on the numbers given. As my noble friend Lord Effingham pointed out, the establishment of the Greater Manchester Bee Network required over £1 billion of central government investment. If you are spending the thick end of £1 billion a year sustaining the London bus network, you might regard a one-off payment of £1 billion to Manchester as mere small change, but replicate that around the country and you will eventually be looking at real numbers. The upshot is that any promise by the Government to give London-style bus services to the whole of the country is essentially a chimera. It is a bogus offer that the Government cannot afford to deliver.
Let us turn briefly to passengers, which is my next topic, if we move away from costs. We argued forcefully when we debated the Passenger Railway Services (Public Ownership) Bill that the focus of the Bill, its overriding purpose, should be to improve passenger services. It was, after all, a Bill—now an Act—about passenger services on the railway. However, the Government resisted that and overturned it in the other place. Similarly, this Bill makes no commitment to an improvement in services for bus passengers. It simply hopes that by making structural and procurement changes it will somehow achieve that. It has no overall duty on the Secretary of State to seek to improve passenger services. It says simply that perhaps the Secretary of State should.
Is the Bill going to work? In its manifesto, the Labour Party committed to reform the system for procuring bus services and to give local leaders new powers. The reality of the Bill is that the Government are not really giving local leaders new powers, but simply removing the Department for Transport’s role in confirming the appropriateness of franchising in other areas. It is our view that the Government’s decision to remove the Secretary of State’s discretionary power to grant franchising powers to local authorities risks too much, and we believe that the Secretary of State should have the power to intervene where a local authority’s franchising model is failing, as a safeguard to protect services for local people where local leadership is poor.
It is essential to understand the differences between large concentrations of persons living in an urban area and the structure of a market that exists in rural areas. That was the logic behind the 2017 Act, which gave powers to certain conurbations, in effect, to franchise or take more control of their own buses but to deny them elsewhere. Extending that power throughout the whole country is, I am afraid, to take a chance and offer a bogus prospectus to the public. The vast majority of local transport authorities will not have the skills to plan routes, assess demand, set fares and introduce a ticketing system, No doubt we will be told that the Bus Centre of Excellence will be deployed to help them. Perhaps the Minister could tell us when he responds how many people are employed by the Bus Centre of Excellence. As other noble Lords have said, the consequence is that the Bill has no answer to the needs of rural communities.
We believe that some subsidiary elements of the Bill are welcome—for example, closing the loophole in the safeguarding of children who are being transported to school on independent school bus services—but we have other concerns, which I will briefly run through, because we will have an opportunity to discuss them further in Committee.
The first is the relative silence of the Bill on ticketing, which is remarkable. As the noble Baroness, Lady Brinton, who is always ahead of the game, said—to the rather older Members of the House, perhaps—Oyster cards are not where it’s at any more. Contactless payment, at the very least, is what one should be looking at, rather than a bespoke Oyster card-type system. But it is remarkable how little the Bill has to say about that and, as she said, about the ability to deploy that payment method outside a particular local transport area. Where is the Bill taking us on that; what do the Government have in mind?
Data collection is very important, but more important is its dissemination. In London, the data collected by Transport for London is available free to all app developers. Do the Government intend the same with the data collected nationally; or is it, heaven forfend, the secret plan of the Department for Transport to develop its own app to disseminate this on an exclusive basis? I think we would like to know.
The training of bus drivers in relation to disability in particular is very important, but as the Minister knows, because I have expressed this to him privately, I am concerned about the implications of the passage in the Bill on drivers being trained to tackle anti-social behaviour and potentially violent activity. It is my very clear view—and I suspect it is, on reflection, his—that it is not right for the public to expect bus drivers to put themselves at risk in order to confront incidents that the police would tackle by deploying two, three or four uniformed officers. We have to be very realistic about this, and we will want to explore the issue when the Bill is in Committee.
Safety is of course terribly important, as the noble Lord, Lord Hampton, made clear. It is worth asking to what extent the franchise model contributes to a sort of aggressive bus management that might lead to buses being driven less safely than might otherwise be the case. I said earlier that the Bill has a sort of nostalgic “back to Attlee” flavour to it. One way of illustrating that is that it completely fails to mention anything to do with demand-led transport. The Bill very much envisages a fixed-route, traditional bus service but in fact, in many rural areas demand-led transport might well be and is already proving to be a much more effective way of providing affordable services to communities. The Bill as it stands contains almost no provision for that and makes no reference to it; it will be interesting to see how that fits with the franchising system.
I will conclude. This is an ideologically driven, backward-looking, bureaucratic and expensive Bill. We, for our part on these Benches, shall do our best to improve it.