Bus Services (No. 2) Bill [HL]

Committee

Amendment 49

49: After Clause 27, insert the following new Clause— “Impact on rural areas(1) Within six months of the day on which this Act is passed, the Secretary of State must lay before Parliament a report detailing the impacts of the provisions of this Act on rural areas.(2) For the purposes of this section “rural” refers to areas so defined by the Rural Urban Classification.(3) The report in subsection (1) must include, but is not limited to—(a) an assessment of the level of bus service provision in rural areas including frequency, coverage, and accessibility;(b) an evaluation of how the provisions of this Act affect access to public transport for residents in rural areas, with a focus on affordability, reliability, and inclusivity;(c) a review of the potential economic, social, and environmental impacts of any changes in transport services or infrastructure in rural areas as a result of this Act;(d) recommendations for any further actions or policies that may be required to ensure that rural areas are not disproportionately impacted by the provisions of this Act.(4) The report must be accompanied by a statement from the Secretary of State on how the findings of the report will be addressed, including any further steps to mitigate negative impacts on rural areas, if applicable.”Member’s explanatory statement This amendment requires the Secretary of State to publish a report within six months on the impacts of the Act on rural areas.

Amendment 49 picks up on a crucial issue that I highlighted at Second Reading and said would be a key theme from these Benches: ensuring that rural areas receive a proper bus service for those often isolated and smaller communities. I thank the noble Lord, Lord Hampton, and the noble Baroness, Lady Grey-Thompson, for signing this amendment.

Rural areas remain severely underserved when it comes to bus services, with provision often unreliable and inadequate. As I have mentioned previously, in areas such as North Shropshire an estimated 63% of bus miles have been cut since 2015. These reductions have had a significant impact on communities.

In general, urban local authorities have above-average levels of bus use per head when compared with rural areas. Department for Transport data shows that, for the year ended March 2024, in Brighton and Hove there were 147 passenger journeys per head of population, alongside Nottingham on 126. This compares with rural areas such as Rutland on three per head, Cheshire East on seven, and Somerset and Shropshire on eight per head of population. That is hardly surprising when these areas have seen significant cuts to their bus services in recent years.

Our amendments on socially necessary bus services, which we debated on Tuesday, would help address this issue, but so would this amendment, which would require the Secretary of State to publish a report within six months of the Act on the impact it is having on rural areas. We hope this focus on our rural communities will help to drive the integration and quality of bus services that our rural and smaller communities and villages deserve. This analysis would be a timely assessment, allowing for a prompt evaluation of the legislation and its impact on rural communities, and would help inform decision-makers, including local transport authorities, and ensure that rural communities’ needs are being met, improving their quality of life and access to services.

My Lords, I rise to speak to my Amendment 62. The amendment from the noble Baroness, Lady Pidgeon, to which she has just spoken, is a very relevant one, and I think I spoke a little bit about it previously.

I suggest that it is important to know what we mean by public transport. This buses Bill is a great development of that, because it is designed to take people who do not have cars, or perhaps do not want to use cars, to shopping, to doctors and hospitals, to visit friends and relatives or whatever—to get around for communication. Of course, as the noble Baroness, Lady Pidgeon, said, it is just as important in the rural areas as in the cities.

One element that I have discussed briefly with my noble friend the Minister is if people cannot get across because there is water in the way. Some of the water has bridges; some does not. Some has big ferries and some has small ferries, and, of course, many of the bridges are tolled. The River Tamar has a tolled ferry and bridge combined. The toll is not very high and you pay it only one way, which is interesting. There are smaller river crossings in Cornwall and many other places where people pay a few pounds to get across. Many people moan at the cost, especially if the tolls are private-sector operated, but they have to cover their costs and most of them are pretty reasonable.

There is a big campaign at the moment about the cost of ferries to the Isle of Wight. There are several of them, as noble Lords know. I do not express an opinion on the campaign or the cost, but people are suffering from an unreliable service, which affects them going to work, college, hospital and so on. For a big population—it is probably more than 100,000—that is quite significant.

On the Isles of Scilly, where I live, there are only 2,500 people but they still have to get to hospital and go shopping when the shops on the islands do not provide what they want. The costs there are pretty mind-boggling. In the summer, you cannot get from the mainland to the Isles of Scilly for less than £100 single. For some people, such as those on the national minimum wage, that is quite significant. If you want to fly, which has the added advantage of being a bit quicker—although it does not like the fog very much and so gets cancelled quite often—the cost sometimes goes up to £150.

My Lords, this is an eclectic mix of amendments. My Amendment 53 focuses on effective governance arrangements, which are key to an effective transfer of powers to local transport authorities, leading to effective delivery of these significant and welcome changes to improve public bus services. The Government’s devolution proposals to create strategic authorities will, I presume, transfer responsibility for bus services from the existing arrangements to these new authorities. At the very same time, those areas of England with a two-tier system of local government will also be undergoing major changes as district councils are abolished and unitary councils are created.

Together, these reforms will result in considerable change in the administration of both local governance and elected governance, decision-making and accountability. Clearly, this is also happening—all three things together—at a time when the responsibility and accountability for public bus services occur and major powers are transferred to local transport authorities. Hence Amendment 53 in my name, which is there to probe what consideration the Government have given to providing guidance and support to those areas of local government that are subject to these significant changes.

Can the Minister share any insight into the arrangements that will be put in place to support councils during this transformation of their local transport responsibilities? For example, it is often necessary to aid effective change with initial additional resources, whether funding or access to experience and knowledgeable advice. The measures in the Bill will transform public bus services but, in my view, what must not happen is transformational change failing or being beset with difficulties for want of preparation on the governance side of the equation.

I feel quite strongly that this is an important area of the change that will take place but that it has perhaps not been given sufficient thought in the Bill, as it is presented to us. I look forward to the Minister’s response.

My Lords, I rise to speak in particular to Amendment 49 in the names of the noble Baronesses, Lady Pidgeon and Lady Grey-Thompson, and the noble Lord, Lord Hampton, as well as Amendment 78 in the name of the noble Baroness, Lady Jones of Moulsecoomb. I remind the Committee of my interests as president of the Rural Coalition and a vice-president of the LGA.

The purpose of these amendments is to ensure that the Bill works to the benefit of rural communities. Transport in rural areas—and, often, the absence of it—has been a persistent problem. Poor service planning in rural areas, cuts in services and ill-considered centralisation have been repeat offenders, and we must make sure that the Bill does not miss the opportunity to improve things. While other government departments carry on planning their services based on urban delivery models, the costs they save by doing so are passed on to the providers of rural transport or rural individuals themselves.

Rural transport cannot be left to the market alone, even where there are state-directed requirements for socially necessary services to be taken into consideration. Franchising has the potential to be a solution to the rural public transport problem, but it must include cross-subsidy between rural and urban areas, and seasonal cross-subsidy when visitor income can be used to support wider community needs. It is vital that the requirement in the devolution White Paper not to leave orphaned rural areas off the map of strategic authorities also applies to bus franchising.

When and if bus franchising is done right and rural public transport can be meaningfully relied on by residents, it is a step towards enabling the rural economy’s productivity to increase and for it to make the contribution it is capable of towards national growth. Without tackling this, it will continue to lag behind. The Rural Coalition, of which I am president, recently published a Pragmatix report looking at the huge untapped potential of rural areas in contributing to the economy of our nation. But we need to get certain things right, of which transport is one.

My Lords, I will speak briefly to Amendment 49, to which I added my name. I will also speak to Amendment 78 tabled by the noble Baroness, Lady Jones. These are two very similar amendments saying pretty much the same thing. Their timeframe is different, but if we are to have this new Jerusalem of connected bus services that help people—the noble Lord, Lord Berkeley, commented about the outer fringes—we really need to know that this is happening. We need to concentrate it and we need it reported back to us.

My Lords, I will speak to Amendment 49, to which my name is attached, and remind your Lordships that I am president of the Local Government Association. From 2011 to 2023, England saw a 20% reduction in bus service provision, adjusted to a 28% per capita decrease amid population growth. The withdrawal of essential bus routes has isolated residents, particularly the elderly and vulnerable, from critical services and social opportunities. Despite overall national decline, particular regional disparities have hit areas such as North Yorkshire, Rutland, Shropshire and Slough. The government investment of £3.5 billion since the pandemic into initiatives such as the £2 fare cap and examples of community-led efforts to subsidise services demonstrate awareness of the problem, but this alone cannot create a more comprehensive bus network.

Transport for All believes that the Government’s proposed increase in funding is an opportunity to address the challenges faced by rural areas. However, in rural areas disabled people are more likely to rely on buses than non-disabled people. They are often impacted by inaccessible bus stops and poor connectivity, but buses are essential for accessing employment, healthcare and social inclusion. Rural bus services often exacerbate isolation and inequality, highlighting the urgent need for reforms that prioritise accessibility and inclusivity as an absolute must. In a survey carried out by Transport for All, 48% of respondents cited barriers to access on buses.

The English national concessionary travel scheme—ENCTS—is fantastic, but it cannot be used before 9.30 am, which creates barriers to employment for disabled people in these areas. New funding has been announced for rural and smaller authorities to provide for ENCTS enhancements. This would promote greater accessibility, similar to that in areas such as London and Merseyside, where disabled people can travel for free at any point of the day. It is really important that we look at this in rural areas—otherwise, it is going to exclude lots of people.

My Lords, it is impossible to disagree with the amendment that the Committee is discussing. We have heard the usual comprehensive proposals from the noble Baroness, Lady Pidgeon. I rise only to ask that if she is not happy—and none of us could be happy about the decline in rural bus services—how can that decline be reversed and who will be responsible for reversing it? Presumably, the Government will be expected to adequately fund the sorts of services that the Liberal Democrats and the right reverend Prelate envisage. We all know that is not going to happen in the short term. No doubt, it will enable the Liberal Democrats to blame somebody else—

We have not blamed anybody. That is not fair.

Well, life is not fair. These are the realities of running bus services. I just remind the noble Baroness who accuses me of not being fair that I used to chair a major bus operator. It was employee-owned for much of the time and faced the same financial constraints and problems under the coalition Government—of which, if I remember rightly, the Liberal Democrats were a part.

Stop being snide. I am sorry—I should not intervene, as I came late.

As far as I have heard on this third day in Committee and at Second Reading, there has been a majority consensus for the Government’s proposals. What we are trying to do is to draw out those issues that we hope the Government will be able to address. One, as we have heard this afternoon, is rural bus services—and, indeed, access for island services. Equally, we understand that that will probably mean more funding. We had a debate on that on an earlier day in Committee. This is not about criticism or blame; it is about pulling out the issues.

I wonder if I could interrupt the noble Baroness to say that I hope that she realises that this Bill does not give the Government powers to run bus services. The whole point of this Bill is to give powers to local government to run bus services. When she says, “We want the Government to address these issues”, it is unclear to me to what she is referring. If she says that she wants the Government to provide funding to address these issues, that is fine, but if the funding is to be specific and hypothecated to particular purposes—say, to the crossing of bodies of water or certain rural services—then what is the point of giving the powers to local government? They should be making those decisions, wherever the funding comes from. I find the Liberal Democrat position on these provisions very difficult to follow.

I am not sure who is giving way to whom at the present time. I will come to the noble Lord, Lord Moylan, in a moment or two, because I would be fascinated to hear his summing up of this matter—I wait with bated breath. Having gorged on those subsidies when he worked for TfL, while his party denuded the rest of the country of bus services, his response will be absolutely fascinating.

I ask the noble Baroness—I hope without causing too much offence—that if these proposals are to be properly implemented, who will provide the finance? It has to be either local or central government. The reality of these matters is that, in the short term, there will not be a massive improvement in rural bus services once this Bill becomes law. I only wish that the opposite were true. Perhaps my noble friend the Minister can reassure me that it will be true. However, until we know exactly how funds will be allocated and how great those funds are, I must say to the noble Baroness, Lady Pidgeon, that, as ably as she moved this amendment, it is, as far as I can see, rather typical of the Liberal Democrats—all motherhood and apple pie.