My Lords, before I come to the Bill, I will pay my respects to Baroness Randerson. Since being appointed to your Lordships’ House, Baroness Randerson served as a Government Minister and spent almost 10 years as her party’s transport spokesperson. During this time, she showed a mastery of the transport brief, making important contributions to wide-ranging debates and holding successive Governments to account.
After becoming a Minister in July, I enjoyed exchanging views over the Dispatch Box and in private with Baroness Randerson. I was very grateful to work closely with her on the recent Passenger Railway Services (Public Ownership) Bill—now Act—the first Bill I have taken through as a Government Minister, and she showed her characteristic attention to detail, inquisitiveness and determination to ensure that the legislation left this House in the best shape possible. I know she was enthusiastic about the Bill in front of your Lordships’ House today and would have wanted again to make sure that it left this House in excellent shape. On that, I will do my best.
As your Lordships will be aware, Baroness Randerson had a distinguished career prior to her introduction to the Lords, serving in the Welsh Assembly, now the Senedd, as the Member for Cardiff Central for 12 years and holding a ministerial post in the Welsh Government. I am honoured to have had the opportunity to work with her, and I know that her commitment to public service will be long remembered. I send my condolences to her family, friends and colleagues in this House.
Moving to the Bill, I am pleased to present the Bus Services (No.2) Bill for Second Reading today. It is not to be confused with the Bus Services Bill, which was introduced as a Private Member’s Bill in the other place. I declare my interest as a licensed PCV driver and that the charity of which my wife and I are trustees holds a number of community bus service permits used for the Imberbus service, which raises money for charitable purposes.
Buses are the most popular mode of public transport and are essential for growth, jobs and housing. However, we have seen in England that passenger numbers and bus service levels have been in decline, with 1.8 billion fewer annual bus journeys outside London in 2023-24 compared with 1985-86. The Transport Act 1985 radically changed the bus industry by privatising the National Bus Company companies and deregulating services outside London, restricting the powers of local leaders to decide what is best for their local area. This Government intend to reverse this.
In London, passengers have long benefited from public control of the bus network, with lower fares and frequent and reliable services. The 1.8 billion passenger journeys made in London in the year ending March 2024 demonstrate how critical the network is to London. This figure accounts for over half of all bus journeys in England. Outside London, two of the existing local authority bus companies, in Nottingham and Reading, are ranked second and third for the highest number of bus journeys per head in England. The success of London, Nottingham and Reading is not a coincidence. Passengers will use good services. It is therefore only right that these options are available to all local transport authorities.
My Lords, I thank the Minister for his opening remarks. We look forward to working constructively with him to improve this Bill, alongside my noble friend Lord Moylan, who will be leading for His Majesty’s Official Opposition.
I hope noble Lords will allow me to say this. Given that this is the second bus services Bill introduced in this Parliament so far, it seems right that you wait a while for one, and then two come along at the same time.
The Bill’s primary goal is to deliver on the Government’s manifesto commitment to give new powers for local leaders to franchise local bus services. It gives local authorities the ability to run and own their own bus companies. In the manifesto, these measures are presented as a reaction to higher fares, routes disappearing and unreliable services. It is therefore only right and proper that we hold the Government to account on exactly how these new powers will address those issues directly. We have concerns that the Government are taking an ideological approach to public transport reform without considering more pragmatic ways to deliver the improvements that are needed. We will also seek to explore whether local authorities have the skills and experience in place to franchise bus services effectively and the appropriate funding to do so.
There is also the question of oversight. In government, we retained the Department for Transport’s oversight of local bus franchising, and we will seek to understand why the Government feel it necessary to remove these existing oversight mechanisms.
The Bill includes a whole range of measures changing the way our bus services work nationally. Whether it be zero-emissions buses, safeguarding rules for school bus services or mandatory training for drivers, we will scrutinise the provisions of the Bill closely to ensure that it will really deliver the improvements we need to see for passengers who are reliant on their bus service.
I am grateful to the noble Earl for giving way. Can he tell us all the great advantages to the bus industry brought about under the last Conservative Government? Can he give the House the figures of the decline in passenger carrying in the bus industry over the 14 years they were in power?
If the noble Lord, Lord Snape, will allow me to continue, I can tell him that under our watch we invested a record £3.5 billion into the bus network to support the post-Covid recovery with that critical lifeline. In answer to his question, we delivered the fantastic “Get Around for £2” scheme, nationally backed by hundreds of millions of pounds. That scheme is a testament to the previous Conservative Government’s commitment to support our bus network as it recovered from the dreadful effects of the pandemic.
Let me also tell the noble Lord that it is impossible for us to hide our disappointment that this Government announced last year that bus fares would increase by 50% as of 1 January this year. That was a choice by this Government that will hit millions of hard-working people across the country.
We also led the way on bus franchising, taking a pragmatic approach while retaining the appropriate government oversight. Our Bus Services Act 2017 gave many local authorities the power to adopt a franchising model, as well as establishing enhanced partnerships.
It was the Conservative Government who gave a mayoral authority area such as Greater Manchester the go-ahead to establish its own bus services, which are now part of the Bee Network. It was the Conservative Government who provided more than £1 billion of central government funding to support the establishment of the Bee Network.
In contrast to our approach, the current Administration have tied themselves to a position in the manifesto that we would summarise as, “There are problems with our bus network; franchising will fix it”. We disagree. While franchising may be appropriate in areas such as Greater Manchester or Greater London, it may not be appropriate elsewhere.
The Bill reads as though it has been written by individuals who are not entirely familiar with rural and non-metropolitan areas. Given that franchising is not appropriate in every case, we believe there must be oversight and will seek to explore this in Committee.
As I rise to speak, I first want to acknowledge the great contribution that the noble Baroness, Lady Randerson, made to this House over many years, not least on transport legislation. I thank the Minister for his tribute. She was such a good friend to me and had acted as my mentor ever since I joined this House last year. Although the time I had with her was so much shorter than it should have been, I benefited greatly from her guidance and wisdom over the last few months and I will miss her wise counsel.
Lady Randerson was the transport spokesperson on these Benches from 2015. and established herself as a strong champion for passengers and for improved and accessible public transport. She was a much-respected Minister in Cardiff Bay and Westminster and held many other posts, including the chancellorship of Cardiff University. Her humour, wisdom and intellect will be hugely missed by the Liberal Democrat family, by the wider House and in the political life of Wales and the UK. On these Benches, we are already feeling her absence deeply—not least right now, when she should be sitting next to me and taking part in this Second Reading debate. The House will miss her contribution today; she was working on it only last week. We will do our best to continue that work.
More than 1.6 billion passenger journeys were made by bus across England, outside London, in 2023. As we have already heard, buses are essential for people to get to school, college, work or appointments and to have access to shops and leisure. A good bus service provides wider economic and social benefits for local communities, businesses and public services.
In its independent bus user survey, Transport Focus found that the timeliness of bus services is one of the key factors for a good experience for passengers, as is the quality of the bus driver in providing the service. I hope that this legislation will help deliver the quality bus services that passengers desire and protect lifeline bus services, which serve rural communities in particular.
My Lords, in recent years I have chaired two transport commissions for the Welsh Government. The first focused on congestion issues in south Wales, while the second explored the challenges faced in having an effective public transport system in largely rural north Wales. During these investigations, I learned a great deal about the problems bus passengers encounter with the current bus network and I fully support the way forward set out in this Bill.
From the perspective of users outside London, the current bus network is plagued by numerous issues. These include inadequate coverage, inconsistent service frequencies, a lack of user-friendly information, and poor reliability and punctuality. In Wales, I found there was strong demand for a network of effective bus connections between key origins and destinations, including transport interchanges and railway stations. This is particularly important for access to people’s places of work, local hospitals, and higher education. In rural areas, journeys to and from local towns and villages are also crucial.
However, in practice, co-ordination of timings and routes often falls short of what is necessary. This hinders connections to other buses and train services that people look for and renders many journeys impractical by bus. Bus services are frequently confusing and difficult to use, resulting in longer journey times compared to cars. They also have a reputation for poor value for money.
Several factors contribute to these concerns, but, in essence, the problem is the absence of a well-managed and integrated network. Outside of London, generally but with some recent exceptions there is an absence of a guiding authority overseeing the coverage and integration of routes, timetabling, ticketing, and information. I am afraid that the current privatised model has prioritised popular and profitable routes. The resulting unevenness in services means insufficient attention is paid to the needs of those without access to a car.
My Lords, I reiterate the regret, expressed by the Front-Bench speakers from all parties, that Lady Randerson is not with us. We shall all miss her. Another person I shall miss is my noble friend Lord Prescott, whose funeral comes in a few weeks’ time. I served as a Transport Minister with him, and he would have some firm views on this Bill, I am sure.
As the Minister has indicated, buses remain, despite everything, the public transport form used most in this country, but the difference between the bus service in London, where I spend half the week, and the rest of the country, including the rural area in which I live, is stark. We need to extend some of the aspects of Transport for London, which the Minister is familiar with. I had occasional complaints about London’s transport during his time there, but in general it is much better than the situation in the rural areas of the south-west and many other areas of England and Wales.
That is wrong and this Bill begins to change it. The fact is that successive regimes have not taken the opportunity to improve the situation significantly. I acknowledge that the 2017 Act, to which reference has been made, made some improvements in franchising; on the other hand, it effectively closed down the scope for direct ownership of municipal bus companies, which this Bill, thankfully, revises.
I emphasise my support for the Bill and my respect for the Ministers—the previous Secretary of State and the current one—who have got the Bill into the legislative programme at a very early stage. That means we can work it through, address the secondary legislation that will be required and get a good bus service operating in most areas of the country within the lifetime of this Parliament.
I agree with the framework, although it will need some tinkering with, the relationship between franchising and local authority ownership, and the role of the Department for Transport. The framework is right—though like the noble Lord, Lord Burns, and others, I would have preferred to see more substantial support, and definitely multi-annual long-term funding and some rationalisation of the form in which funds come from both local and national government—and, in general, the Bill is moving in the right direction. However, I wish to raise three issues which are not significant in the Bill, and might well require yet another Bill—the noble Earl, Lord Effingham, has already used my joke in that respect—but which need to be part of the reformation of the bus system in the country outside London. Broadly, they involve the passenger relationship, in particular the ticketing system, the workforce and environmental provisions. I will take those quickly, one by one.
My Lords, first and foremost, I declare my interest as chairman of Transport for the North, as set out in the register. I very much associate myself with the remarks made by the Minister and the noble Baroness, Lady Pidgeon, on Baroness Randerson, who was a formidable transport spokesman. She never missed the opportunity to make the case in this House for better transport links, both in her area and in the world. The House will be the poorer without her presence.
Much reference has been made to the last buses Bill, which was in 2017. I had some responsibility for that, as the Secretary of State when it was introduced to the House of Lords in 2016, but I was not around as Secretary of State by the time it completed all its stages. I accept a responsibility for its birth, but I am not sure that I am quite responsible for its final framework when it passed.
The background to how that particular Bill came about is quite interesting. It was partly a Bill promised in a deal done by George Osborne, Sir Richard Leese and Howard Bernstein on the whole way in which devolution and mayoral powers were to be introduced and eventually transformed. We have had a lot of reference this evening to the Bee Network in Manchester, which really was the trailer, and that Bill allowed it to happen. We see it now in operation, with clear leadership from Andy Burnham as to what he wants and expects, leading a drive to see more people use public transport. It is worth remembering that a double-decker bus can take something like 70 cars off the road, and possibly be quite effective in reducing congestion.
I also think it is important—it has come through in today’s debate—to think about what we do not require. We do not need a straitjacket, because we need to allow local flexibility. I remember my mother’s life being transformed when a bus started to run around the estate. It enabled her to go into town, do her shopping and get back on a small bus that ran through the estate. That was not a community bus, but community bus transport is an area in which we can see possible improvements, particularly in rural areas.
My Lords, I thank the Minister for introducing the Bill and join the widespread tributes to the noble Baroness, Lady Randerson, that we have heard from the Minister and around the House.
Noble Lords may be a little surprised to see me as transport is not usually my territory, but I can reassure them that my noble friend Lady Jones of Moulsecoomb is recovering very well from her hip operation. She will hopefully be back on Monday. I expect that she will take forward later stages of the Bill, but in the meantime your Lordships get me.
Introducing the Bill, the Minister reflected on the fact that three parties had promises about bus services in their manifestos. I will have to add to that and say that the Green Party put bus services absolutely front and centre of its manifesto. I will highlight two things from that manifesto. One was a focus on village bus services. It promised a service to every village in the land. The second thing was free bus travel for under-18s. I point noble Lords to the success of the Scottish Greens. From their place in government, they were able to bring in free bus travel for under-22s in Scotland. That has seen a real step forward in introducing young people to bus services and building it into a standard part of their lives. That free offer has been really successful, really useful and really valued.
Quite a number of noble Lords have said, “Well, there’s the cities, and they can do these things, but we’ve got to be realistic about what rural areas can do”. It is important not to underrate the capacity of rural bus services and rural institutions to oversee them. I will give a practical example. After the shock of the Covid pandemic, the Green-led Herefordshire county council made all buses free at weekends and put on extra weekend services. They used £1 million from the Covid recovery fund to do that. Of course, we are talking about Herefordshire, a heavily rural area, with towns and villages. Nearly 170,000 journeys were taken on the 12 new Sunday bus services and, after the scheme ended, five of the most popular services continued to run seven days a week. So, if you provide the services and give people the real cost benefit of those services, they will adopt them and make them a regular part of their lives. That is as true of rural areas as it is of city areas.
My Lords, I share the remarks made by a number of noble Lords about my late noble friend Baroness Randerson. I was her Whip. Her loss to us is incalculable. She was an exceptional politician and a great friend to us all. She will be greatly missed.
Although the Bill does not specifically mention home-to-school transport, it does touch on a vital part of that provision: the transport needs of children with special educational needs—SEND. They, along with many other children in North Yorkshire, will be affected by the changes proposed by my local council over the next seven years.
At present, there are 10,000 children across North Yorkshire who are entitled to free home-to-school transport. The majority of these are what we call mainstream children, but 2,500 of them are the most vulnerable SEND children. That is a quarter of the total, and it uses more than half the whole school transport budget. Most of these 10,000 children live in villages and hamlets scattered round the vast rural area of North Yorkshire. Up until now, they have all been entitled to free home-to-school transport to enable them to attend any suitable school within their catchment area. The vast majority choose to support local schools within North Yorkshire’s boundaries, rather than travel to our neighbouring counties of West Yorkshire, East Riding, Cumbria or Durham.
In July last year, the Government published updated guidance on helping SEND pupils to travel safely. NYC decided, very quickly, to use this as an opportunity to revise its school transport policy in an attempt to save money. It modelled various scenarios, but the model that it chose had a fundamental flaw: it predicted savings of around £4.2 million over seven years, but that was based on 100% of children opting out of home-to-school transport entirely. Until then, NYC had paid transport costs for children, including SEND children, to attend any suitable school within its catchment area. That changed in July last year, when it decided that, for the majority, it would pay transport costs to their nearest school only. That is seemingly a small change, but one that ignores the geography of North Yorkshire and fails to factor in the disruption it would create for families.
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As a Government we are committed to delivering better buses. In the 2024 manifesto the Government set out a clear plan to improve bus networks. This Bill marks an important contribution to supporting the Government’s missions to kick-start economic growth and break down the barriers to opportunity. Changes that the Bill makes will enable safer, more reliable, inclusive and accessible networks that provide the connections that passengers need. This, as I said, is essential to accessing vital jobs, education and healthcare in cities, towns and rural areas across England.
The Bill is about providing local leaders the ability to choose the best way of running services in their area, a choice not currently available everywhere in England. Local authorities should be able to decide how best to run their services, choosing the right operating model that works for their communities. This will help improve bus services and grow usage, meaning that it will be passengers who benefit. The Bill is focused and narrow in scope. Its measures apply primarily to local bus services in England. School services are also in scope due to the single clause relating to enhanced criminal record checks for drivers of school services.
We have already taken a first step in reforming bus services. We brought forward the Franchising Schemes (Franchising Authorities) (England) Regulations 2024. These came into force on 18 December and enable all local transport authorities in England to franchise their bus services. These powers had previously been limited to mayoral combined authorities and mayoral county combined authorities. The Bill builds on these regulations and marks the next step in our ambitious plan towards a better bus network. The need for reform is clear—to reverse the decline in passenger numbers and services that have been depleted over many years, and particularly recently.
Transport for Greater Manchester’s journey to bus franchising has shown the potential benefits of greater public control. It is timely to be presenting the Bill during the week in which its journey has been completed. Manchester has already seen patronage increase by 5% since public control began to be rolled out in 2023. Elsewhere, local authority bus companies such as Nottingham City Transport have delivered award-winning services to passengers. There are also great examples of local transport authorities working in partnership with the private sector to deliver excellent services, such as in Brighton, Norfolk, Bournemouth and Poole, and Wiltshire. Sadly, there are also examples of towns and cities with little or no evening or Sunday services, and rural areas with no services at all. There will be no one-size-fits-all approach. Different cities, towns and rural areas have different needs. The Bill is about ensuring that local areas have all the tools they need to improve bus services for their communities.
Bus services are the lifeblood of communities. They carry people to hospital appointments, to school and to their jobs. This is especially true for women, those who are young, those on low incomes, ethnic minorities and the elderly, all of whom rely on buses more. Given the strong case for change, the principles behind the Bill should, I hope, receive cross-party support. The manifestos of all three main political parties acknowledged the importance of buses. There is also strong public support, so I sincerely hope that noble Lords on all sides of the House can get behind the Bill as a vital step towards fixing our fragmented and variable bus networks.
I know from speaking to many noble Lords that they believe in improving the bus network for the better, whether that is improving accessibility or rural services, or protecting routes. The Bill seeks to address all these issues and keep passengers at the core of its aims. It is a government priority. The ambition is clear, and it is hoped that the Bill will deliver greater consistency in bus services across the country. Its objectives include protecting passengers from anti-social behaviour and violence, reducing fare evasion and expanding powers to local authorities on bus funding.
I am sure that some noble Lords will question how the Bill moves forward from the last fundamental shift in bus legislation. It is true that the Bus Services Act 2017 gave new powers to local transport authorities to create enhanced partnerships and allowed mayoral combined and mayoral combined county authorities to pursue bus franchising, but these franchising powers did not extend more widely. New local authority-owned bus companies, formerly referred to as municipal companies, were also banned by that Act.
This Bill builds on the 2017 reforms, while also reversing the ban on local authority-owned bus companies. This will help deliver a wider set of options for local areas. Local transport authorities—LTAs—know the needs of their communities and they are best placed to decide what shape their bus services should take.
I will briefly enumerate what the Bill does. It is split into 11 areas. First, while the recent franchising regulations removed the limit on which local authorities could franchise, the clauses on franchising in the Bill will streamline the process, including by removing the Secretary of State consent requirement. The intention is to introduce flexibility and to reduce the amount of time it takes for LTAs to franchise their bus services if they choose to do so.
Secondly, a provision in the Bill will require LTAs to specify requirements which must be followed where bus operators under enhanced partnerships wish to vary or cancel a service that has been identified as a socially necessary local service.
Thirdly, for local areas where enhanced partnerships remain the best option for local services, the Bill will strengthen these partnerships, allowing for improved working between LTAs and bus operators.
Fourthly, the Bill will repeal the ban on establishing new local authority bus companies, giving local authorities the chance to use their local knowledge to run services in their area and opening up powers currently limited to the five legacy local authority bus companies.
Fifthly, LTAs will be given the power to design and make grants to operators of bus services in their areas. They will have greater freedoms to decide where that money is directed.
Sixthly, provisions on bus registration will improve the availability of information for passengers. This includes new statutory powers to require LTAs in franchised areas to provide information about local bus services with the aim of helping to improve reliability for passengers.
Seventhly, the Bill includes measures to improve safety on buses by giving powers for LTAs to bring forward by-laws to tackle anti-social behaviour and powers to enforce fare requirements.
Eighthly, it is important to increase the safety and accessibility of stopping places, so there is a measure giving the Secretary of State the ability to set out expectations for bus stops and bus stations in statutory guidance.
Ninthly, the Bill closes an existing loophole through the inclusion of a safeguard for school services. This requires the operator of a public service vehicle to check an enhanced criminal record certificate for drivers who carry out closed school transport services more than three times in any 30-day period.
Penultimately, there is a power in the Bill to mandate training of bus staff, including bus drivers, on tackling crime. This is intended to tackle incidences of violence against women and girls, as well as anti-social behaviour. There is also a measure for training on disability awareness and assistance.
Finally, to meet the commitment to move towards sustainable travel, there is a measure on zero-emission buses to accelerate their rollout by introducing a restriction on the use of new non-zero-emission buses on registered local bus services. But, in recognition that the industry will need time to adjust to this change, this will not come into force before 1 January 2030.
This is a comprehensive and focused Bill that reforms and develops critical aspects of bus services. Stakeholders, including the bus industry, have been engaged throughout policy development to ensure that the provisions are fit for purpose and address the key challenges that the industry faces.
The Bill’s application is largely to England only. This is the case for the critical measures relating to bus operating models, such as franchising. Certain clauses will also apply to Wales and/or Scotland where necessary, but the Bill as drafted will not require any legislative consent motions from the Welsh Senedd or Scottish Parliament.
Before I conclude my opening remarks, I reinforce that reform does not end with this Bill. This journey has many stops. Following Royal Assent there will be further regulations required, including on franchising, bus registration, fare evasion, staff training and zero-emission buses. These are needed so that that which the Bill has enabled can be set out clearly for industry stakeholders and local authorities to follow. My department will continue to engage with all parties.
I recognise that franchising is a choice, but that this route is not currently well trodden. My department is therefore developing guidance to increase capability and capacity in those authorities that are striving to franchise, and this guidance will follow the Bill.
While the Bill does not introduce new funding, I am sure that noble Lords will wish to debate funding through the parliamentary process. It would be remiss not to mention the Government’s Budget commitment to over £1 billion of funding for buses in 2025-26 to support and improve services and keep fares affordable.
To conclude, this Government will reform the bus network to deliver improved services for passengers across England. This supports our growth and opportunity missions, providing a clear strategic direction for buses and proper integration and co-ordination. The Bill presents an unprecedented opportunity, learning from the 2017 Act, to create a safer, more reliable and transparent bus network, with local leaders having more powers to decide what is best for the local area that they represent. This will be a step forward in reversing the decades of decline that have become synonymous with bus travel in this country. There is much to be done and this will not be an easy journey, but industry stakeholders and local authorities alike are invested in creating an improved bus network that users can be proud of. This Bill is a vital component in our plan to reform buses. I beg to move.
The previous Conservative Government had an excellent record of backing our bus services and we have long recognised the importance of bus services for poorly connected rural communities, as well as the crucial role the services have to play in the growth and prosperity of cities such as Manchester.
Under the Bill, the key players in the Government’s bus policy will now be local authority executives. We pay tribute to every single one of the excellent councillors who work tirelessly for their communities across the country. But many of those councillors will tell you that their authority does not have the skills or necessary funding to run its own bus company. Speaking in the Local Government Chronicle last year, Andrew Carter, the chief executive of Centre for Cities, welcomed franchising powers for cities but flagged that having money to run the bus services is “crucial”.
As we have already highlighted, Greater Manchester received more than £1 billion of central government funding to set up the Bee Network. The bus funding announcement at the end of last year delivered just £1 billion for the whole country.
During the passage of the Bill, we will scrutinise the resources and skills that local authorities have at their disposal to establish whether the Government have put the right measures in place to help those authorities deliver the promised improvements in services. We are also keen to hear the government plans for bus services in areas that decide against taking advantage of franchising powers. Local people deserve better-value services, regardless of the model of provision their local leaders have chosen. The issue of local government funding links into the cost of franchising. We know from areas that already operate franchising models that this is a costly business, with London subsidising its bus network heavily. My noble friend Lord Moylan will speak about that in more detail than I can here, but it is critical that the Government accept this and put the right level of financial support in place if their “franchising first” approach is to be successful.
The Bill includes measures on transparency and accessibility of data on services and performance, enforcement powers on fare evasion and anti-social behaviour. It also seeks to improve bus stops and bus stations for disabled people. By what date will the Minister commit to improving bus stops? Surveys suggest that almost a quarter of people are put off taking the bus because shelters are inadequate.
The Bill mandates enhanced criminal record checks for drivers on school services, as well as regular training for bus drivers and other staff on disability, tackling crime and anti-social behaviour.
The Bill includes provisions to restrict the use of new non-zero emission buses on registered local bus services at some point after 1 January 2030. How can the Minister ensure that we will not see a recurrence of the recent report of electric buses in Glasgow grinding to a halt as the cold weather drains their batteries, or the almost 1,800 electric buses recalled from fleets in major cities last year because of fears they could catch fire if unattended?
The above items are not manifesto commitments for the Government, and the scope of the Bill is wide in these areas. We intend to probe the Government’s plans surgically because we want to ensure that local authorities, bus operators and the public at large can hear more on exactly how the Government intend to proceed. Where issues arise, we will seek to improve those elements of the Bill as part of a collaborative and constructive approach to its scrutiny.
As I said at the start, His Majesty’s Official Opposition have long recognised the critical nature of our bus services. We will do everything we can to deliver improved services. We will approach the Bill with a one team ethos, challenging the Government where it is logical and sensible and, crucially, where the passenger benefits. We will probe the plans as fully as possible so that together we can send an improved Bill on to the other place.
We on the Liberal Democrat Benches welcome this legislation, which looks to improve bus services across England, grow the number of passengers using buses and ensure a more reliable network connecting people and places. We recognise that bus services in many communities across the country fall far short of the required standard and level of service. In particular, we welcome the aims to empower local leaders to choose the bus operating model that works for their local area and to provide powers to underpin those models. There is no one-size-fits-all approach given that, on the one hand, we have places such as London—although it is excluded from this legislation—working with a franchise model, and, on the other hand, we have urban towns and cities operating a decent bus network in some places and, in others, less so. Then we have rural areas with different needs and costs associated with running even a very basic service. Each area will want to adopt an option that suits its geography and community.
Rural areas remain severely underserved when it comes to bus services, with provision often unreliable and inadequate. In North Shropshire, an estimated 63% of bus miles have been cut since 2015. These reductions are having a significant impact on communities. Too often, elderly people are forced to rely on family members for transport when what they really need is a dependable, accessible bus network that allows them to travel independently. Without this, many struggle to reach vital amenities such as shops, health services and hospitals. An extraordinary example is the local campaign to establish a bus route from Fleet in Hampshire to the local hospital, as no such service currently exists. With a population of 40,000-odd people in Fleet and its neighbouring towns, the hospital car park often experiences a 45-minute queue, yet there is no bus service.
Adding to the challenge of infrequent bus services is the lack of adequate technological infrastructure. In many rural constituencies, real-time bus information is either unavailable or inaccurate. Bus apps, which could help the user experience, are rendered useless by poor mobile signal, and basic bus information at bus stops can be non-existent. This situation must change. Reliable public transport is not a luxury; it is a necessity, especially for those who are most vulnerable. By addressing these issues in this legislation, we can ensure that rural areas are better connected, thus supporting residents and improving their quality of life.
Alongside empowering local leaders, we also welcome the provision to devolve powers to local transport authorities to design and pay grants to bus operators. Yet new Section 154A provides the Secretary of State with a delegated power to issue statutory guidance on the exercise of the payment and design powers that are to be devolved. This seems contradictory. Can the Minister clarify whether this is genuine devolution or local authorities simply implementing what the department requires?
As noble Lords will be aware, current bus funding is complicated, with different funding pots across the country: from bus service improvement plan funding, BSIP+, Network North BSIP, zero-emission bus regional areas, ZEBRA 2, local transport funds, BSOG and so on. There are so many areas. As we have seen, Portsmouth has a strong enhanced partnership: through bidding, it has managed to secure £235.76 per head of population for its bus services. This can be compared to places such as Swindon, which has secured a mere £3.98 per head. The Campaign for Better Transport highlighted these discrepancies in its recent report on bus funding. For greater clarity, can the Minister say whether funding will be provided alongside this devolution, with local transport authorities able to decide how best to support financially their local bus services rather than being directed from Whitehall? Genuine devolution to ensure that local bus services meet the needs of local communities, with funding to make it happen, is absolutely essential. Powers with no funding will not transform our bus services.
An unfortunate area that is missing from this Bill relates to fares. The final-stage impact assessment states:
“There may also be benefits associated with increasing bus usage through lowering fares”.
It also states:
“Increased fares, unreliable services and fewer routes would likely drive more people away from buses, further reducing passenger numbers”.
This is critical as many of the most financially vulnerable people rely on bus services to access key amenities in their community. The increase in the bus fare cap from £2 to £3 creates real issues for passengers, particularly those on low incomes. Many rely on buses for daily essentials and a £1 rise per journey adds up quickly, straining already tight budgets and forcing difficult choices between transport and other essentials. For rural communities where alternatives are few, the impact is even greater. Without addressing this in the Bill, we risk isolating those most in need and deepening existing inequalities.
This must include cheaper bus travel for young people, making education, training and job opportunities more accessible. It would reduce the financial strain on families and encourage independence, helping young people to engage fully in their communities. Affordable transport also promotes greener travel choices, cutting carbon emissions and easing road congestion. I hope that the Minister will be able to advise us how affordable fares will be addressed going forward. As this Bill progresses, we will want assurance that it fully addresses the needs of remote rural areas, assists the transition to net-zero buses, and includes strong and improved accessibility provisions for disabled passengers.
I am pleased to see that the Bill responds to the experience in Manchester, which has re-franchised its bus services. It has taken a considerable time—more than six years—to get there and there were a lot of bureaucratic hoops to jump through, but I am delighted that the Bee Network is now going from strength to strength. Although many of these issues are addressed in this legislation, going forward, there may be room to tighten the wording in some areas to ensure that it is clear. We will pick this up in Committee.
We are also pleased that a safeguarding loophole is being closed where drivers could drive school buses without an enhanced criminal record certificate. That is absolutely essential. It is extraordinary that we have such loopholes today.
Finally, an issue I have been interested in for some time is demand-responsive buses, which have been trialled successfully in places such as Sutton and have the potential to help deliver a good bus service in some areas. Can the Minister clarify that these services can be supported by this legislation and that a local authority could run such a service if it desired?
Overall, we welcome many of the changes proposed in this Bill and look forward to debating it in more detail in Committee.
For these reasons, I have been attracted by the potential benefits that could be achieved through extending the franchise model outside London. This model offers the opportunity for an effective bus network to operate within an integrated public transport system. The benefits can be realised in both urban and rural areas. A well-functioning bus network can significantly help people by facilitating journeys that cater to their travel needs and making bus travel more convenient, rather than simply dealing with the issue of the popularity of particular routes.
As more good jobs become available in city centres and large towns, it becomes ever more important that they are accessible to outlying areas without the need for a car. The franchising model opens the possibility for authorities to design efficient systems that maximise the network’s value by integrating timetabling and ticketing. It also ensures that the network and services appeal to a diverse range of potential travellers and are much better adapted to people’s needs.
The present Bill addresses these issues and I welcome that, but I would like to emphasise some aspects that I found to be important in the work I was doing. At its heart, there must be a data-driven analysis of the journeys that are currently being undertaken by car, whether they are for work, hospital trips or recreation. We now have access to mobile phone data that tells us a great deal about movements of people in an area. Analysis can show the opportunities that are currently unavailable to individuals without access to a car. Often, this shows how people in this position miss out on good jobs or career advancement, or hospital visits. It also provides a picture of where more frequent services and better connections could be used to tempt drivers out of their cars.
It is also crucial to ensure continuous access to open data on bus service performance and to make this data available in a useable form to help people plan their journeys. This data should be easily accessible and available in a single location. Effective data is vital for potential bus passengers to plan their journeys efficiently, as well as for those evaluating the success of route and timetable decisions taken by the authority.
Another important aspect is a ticketing system that enables people to move between services with a single ticket, preferably with a daily cap on ticket prices. I am afraid that complicated fare structures are another significant disincentive to travelling by public transport.
Of course, as has been mentioned today, funding for franchised bus networks is a significant concern. Current bus subsidies are already under pressure, and I suspect an improved bus network will also require some additional funding. Multi-year funding would help provide stability and certainty for the travelling public and operators.
The Bill will allow local authorities to manage their own bus services. While this can be successful, and I understand why there is pressure for it, my own view is that it is also crucial that private operators can bid for contracts awarded by the authority. This maintains a vital level of competition within the system. Evidence suggests that bidding for routes might be a more effective way of producing genuine competition than the present deregulated bus system.
Finally—and this is something that applies very much in north Wales—many important bus journeys involve moving between local transport regions. For these journeys, we need the option of longer-distance, limited-stop regional bus services. This is especially important in areas without a local railway network. Regional bus services in those circumstances are crucial and should be seamlessly integrated with local bus networks. Where possible they should be routed through transport interchanges and railway stations. This integration is essential if public transport is to remain competitive in terms of timeliness compared to the motor car.
I am pleased to say that the Bill touches on each of these issues. In many ways, it addresses many of these real issues and recognises their importance, and I wish it well.
Concerning the passenger system, the majority of passengers outside London—certainly in rural areas and in many of our smaller cities—travel for free because they are old-age pensioners or students. People are not attracted to getting on the bus, so they use their cars in areas which would, objectively, be much better served by them taking the bus to the shops or to work. Among the reasons for this are the unreliability and frequency of the bus, and the interchangeability of the bus on routes that they have to take.
I referred to my time as a Transport Minister. I had one achievement that I have been very proud of: I was the very first person to use an Oyster card. I think it was in 1999, at St James’s Park station. We introduced that and extended it from the Tube to the buses and suburban trains. We need a similar system in other parts of the country, so that you would buy one ticket that you can use for a month or a year, and buy it at whatever regularity you feel fits your purposes, and then move from one bus to another without any difficulty. The cost is relatively small. Many of us will have realised that, once we have an Oyster card, we use it and use the car less, and probably walk less as well. We need something similar for areas outside London, particularly outside our cities.
A couple of years later, I introduced another system: the over-65 pass—or the old gits’ pass, as I used to call it, though I do not use that phrase so frequently these days. We introduced in a transport Bill in 1999 that these passes would be valid throughout the country. Although I occasionally face consternation from bus drivers when showing them my Dorset pass, it allows me to travel anywhere in the country for free. We need the same for those who do not qualify as students or old-age pensioners. They would have to pay for it, but the convenience that results would be a big attraction. We could regain the millions of bus passengers who have been lost over the last 40 years since deregulation and the growth in the use of cars.
We also have to ensure that we have an adequate workforce. The workforce has declined by 25%, in line with the usage of buses. The key factor here is that most of the drivers are relatively old and will retire relatively soon, while new drivers coming into the trade are relatively few. We need a system that attracts younger and newer drivers, as well as getting other drivers back into the bus trade. That is essential if we are to expand the whole range of services, which I hope the Bill will lead to. As far as this Bill is concerned, the only reference to training relates, rightly, to the safeguarding and protection of passengers. That is important, and I am glad to see it in the Bill, but we need a provision to ensure that there is adequate training across the country for drivers, mechanics and other staff, so that we have an adequate workforce for this service.
The third area, the environment, is mentioned in the Bill but not sufficiently. It is interpreted explicitly and specifically in relation to having zero-emission buses. That is an important aspect of the environment—it is right that it should be in the Bill and I agree with the timescale—but it is only one aspect. It will be important to see on our streets, as we are beginning to see in London, zero or near-zero-emissions buses, but that is only part of it.
Another serious issue is that buses contribute to congestion and pollution, particularly on our urban streets. That requires a rather better system of traffic management, which preserves and extends bus lanes, rather than what is happening in many of our cities at the moment. That is partly because of the extension of cycle lanes—I see my noble friend Lord Berkeley sitting here—but these should be introduced at the expense of motoring lanes, not bus lanes. The result, in London and elsewhere, is buses being delayed in traffic in what were previously free-flowing bus lanes. We need to make sure that traffic management in the towns and cities in which our buses have been constricted gives priority again to the introduction and sustaining of bus lanes.
Those are some of the things which I hope the Minister will assure me can be introduced within the framework of the Bill by secondary legislation, rather than in an additional Bill. They are essential to attracting people back to using buses, and to ensuring that buses are not idling in their lanes because of traffic jams, polluting the atmosphere, as well as holding up the rest of the traffic. We need to make buses much more attractive in this respect, so that they are quick, reliable, clean and healthy. If we can do that, and get at least a significant proportion of people back into using buses, then this Bill represents a very good start. I congratulate Ministers on it and will support it.
When I was Secretary of State, I brought in a scheme to support community buses. They had to be small organisations; the larger ones could not take advantage of the scheme because of certain competition rules. Those were partly EU rules. We are free from those rules, so I urge the Minister to look at that scheme and see whether it can be resuscitated, because I think it is important.
There is no doubt as to the important role that buses can play, both in local economies and, as the noble Lord, Lord Burns, said, in the opportunities for employment prospects. There is also the fact that it is still one of the most used forms of transport today—not the train but the bus. I have seen the figure of 11 million journeys a day. The Bill extends bus franchise powers beyond metro mayors to all places and accelerates the franchising process, so there will need to be some very specific guidance.
In reading the debate on the Bill in 2016, which became the 2017 Act, I was interested that there was some criticism that it gave the Department for Transport a few too many powers as far as delegated legislation was concerned. As chairman of your Lordships’ Delegated Powers and Regulatory Reform Committee, I read with interest some of the attacks made on that Bill about those delegated powers. But there are some areas where delegated powers are absolutely essential, because things change and we should not be forced to wait for further primary legislation.
Buses remain the most used form of public transport in England. However, bus journeys have been in decline for many years in most of England. They dropped from 4.6 billion in 2009 to 3.6 billion in 2024. Journey numbers are also yet to recover to pre-Covid levels. In the year ending March 2024, bus usage was around 12% lower than in the year ending March 2020. It is important to remember that public funding accounts for 44% of all bus industry income. That is with the overall concessionary bus pass, other allowances and grants given by the Department for Transport. The rest of it comes from fares. This is similar to pre-pandemic funding levels.
Bus mileage is used as an indicator of how many bus routes there are. In England outside London, bus mileage in the year ending March 2024 was around 29% lower than in 2005. However, bus mileage in London has remained fairly stable over the same period, so London has managed to keep a level of service that the rest of the country has not seen. As far as the north is concerned, the latest figures for 2024 show that the north has 33% less bus mileage since 2010, including a 22% reduction since 2019, the last full year prior to the Covid pandemic. Bus patronage in the north grew to 703 million passengers in 2024, 8.1% more than in 2023, but was still some 18% lower than in 2019.
As we see more devolution, with more powers going to metro mayors and a growth in the number of metro mayors, they will take much more interest in how these services are being run and the opportunities there will be. I hope we can look at what happened in Manchester and understand some of the difficulties it faced, but also give guidance as to how the other areas can take forward their plans. We should not give a straitjacket saying that this should happen in all areas, because some areas will be different, particularly rural areas and county areas. What you can do in Manchester, Leeds or Sheffield is not the same as what you can do in some remote parts of Lancashire or Cumbria. Those areas need to be addressed as well, and opportunities in those areas need to be found.
I was encouraged by the way in which the Minister said that it was not one size fits all. On that, we are speaking the same language. We should give mayors—where there are county mayors or mayors of combined authorities—a good chance for the grants that will be available. We should also encourage different solutions in different areas, remembering that a journey does not necessarily stop at a county boundary. How you overcome that county boundary, so that workplace areas become much more important, will be one of the vital challenges.
For us to meet some of our environmental requirements and targets, public transport will need to play a very important role. I very much regret that the Government felt they were unable to continue with the £2 bus fare cap, but that decision has been made. We still need to find ways of encouraging more people to use the bus service, by giving them the confidence to use it and making it a reliable service. One of the most important things for public transport is for people to know it is reliable. If they know it is reliable, they will use it. If they think it is unreliable, they will not use it.
I wish the Minister well in his task. We are right to hold the Government to account on where the money will come from for future schemes, and exactly how that money is going to support a better public transport overall for the people of this country.
Coming to the broader picture, I will revisit a figure that I suspect several people have already cited: in 2023-24, there were 3.6 billion passenger journeys. Buses are how people get around. But this figure has seen a massive decline. The mileage for the year to the most recent March was down a quarter since 2010. We have heard a lot of hot air over recent decades about the claimed “war on the motorist”, but, instead, we have actually had a butchering of the buses. I started with the figure from 2010, because I am afraid we know where the responsibility for that butchering of the buses lies: the party that was in control at the time. Behind that has been an ideological position where bus services, particularly outside London, have been run for private profit rather than for the public good. This is one more privatisation disaster that has absolutely failed. To a limited degree at least, the Bill is, happily, finally undoing that loss of local control and local democracy that was represented by privatisation.
Like a number of noble Lords, I will briefly focus on how buses are particularly important to lower-income households, jobseekers, women and older people. They are crucial for public health—I do not think anyone has used that phrase yet—because we have a widely acknowledged loneliness epidemic. If we think about one prescription to tackle that, bus services being readily available to people is an important part of that measure.
On that, I want to pick up a particular point with the Minister. We are coming back to funding, and I understand that this may not be central to the Bill, but it is an important and relatively cheap point. The statutory concessionary bus fare for free travel for pensioners and disabled people runs on weekdays between 9.30 am and 11 pm. We all know about medical appointments that may require travel before 9.30 am, and we know that many older people often provide childcare to enable family members to take paid employment. They may well need to travel before 9.30 am. Will the Minister look at making what would be quite a modest investment to ensure that that concessionary free travel is available to everyone, which would surely have a high level of public benefit?
Many people have raised the rise in fares from £2 to £3. It is worth highlighting that the £3 level is, under current government arrangements, due to end in December this year. That does not give people a long-term sense of planning. Surely, the sensible thing to do would be, ideally, to go back to £2 but at least to provide long-term certainty—for operators, local councils, communities and individual travellers—that the £3 bus fare will stay.
Like many noble Lords, I received a large number of briefings and will highlight those from the Green Alliance, the Campaign for Better Transport and the Urban Transport Group. The Green position, and that of those briefings, sets out that the Bill is heading in the right direction but is not going nearly far or fast enough. One thing that is missing is the failure to encourage the recovery of lost routes. Local authorities need to be able to identify where the holes are and to fill them in, but the Bill does not provide for that. Absolutely rightly, there is also a call for a bus service guarantee, to guarantee that all communities have a minimum level of bus service. That comes back to the village point that I started with.
Noble Lords would expect me, as a Green, to focus on the need for a firm date for zero-emission buses. This is such an obvious step both for public health and for reliability and certainty. For new buses, high levels of reliability are really important, as well as clean air.
Finally, we have talked quite a bit about bus stops. I will jump on a favourite little hobby horse of mine: the assumption that everyone has a mobile phone that will give them reliable information about bus arrivals. That is not true in London; it is not true at the bus stop that I use most mornings. Having signage at bus stops where possible, or at least proper guidelines and timetables, is crucial to enable people to use buses.
I have to highlight the situation in South Yorkshire, which has been terribly hit by that butchering of the buses. We have seen a bus mileage decline of 42% across the region. The bus services in South Yorkshire have got close to what you would have to describe as collapse. There is a plan to take franchising forward, but it will take a very long time. The Bill will possibly assist, but I would be interested in anything that the Minister can say particularly about helping South Yorkshire to put back those crucial services, in an area where people really need them to get to work and get around.
I will raise a point that I do not think anyone else has raised specifically. Some noble Lords may know about a campaign—it is starting in London but should apply around the country—for a London bus driver Bill of Rights to be included in the TfL framework bus contract. I am aware that this Bill does not cover London, but the issues that this campaign raises none the less apply for bus drivers around the country. The noble Lord, Lord Whitty, pointed out that bus drivers are an ageing group of people, and we need to make sure that this career appeals to people coming in for the future.
I give noble Lords advance notice that, on 29 January, a march will start from Victoria station, where, a year ago, a pedestrian was killed by a route 13 RATP bus operating under contract for TfL. At least 87 other victims have been killed in preventable bus safety accidents in London since 2016. Of course, this is of great concern to the drivers, given the conditions of the contract, which they feel are dangerous. I note that the drivers will be marching to Parliament Square, so look out for them on 29 January.
The Bill does not have any of the data transparency or safety reporting requirements that the House of Lords tried to incorporate in the Bus Services Act 2017, so my noble friend will very likely bring up that issue in particular at further stages of the Bill.
The implications of this decision are simply massive. Families may be forced to send their children out of the county to be educated, causing disruption to North Yorkshire schools, which will lose pupils and funding. We are already losing too many of our small schools, and our larger schools could be forced to cut teacher numbers and reduce curriculum choice. In vast rural areas, such as the Yorkshire Dales, many children will be required to travel on remote, high roads, often not gritted in the winter. North Yorkshire prides itself on having good, often exceptional schools. If it decides to send its children out of county to be educated, it will soon find itself struggling to maintain this quality.
In addition, this policy change will result in siblings being forced to attend different schools over the seven-year implementation period. This will cause upset for those children and practical problems for their parents, who are already finding life difficult enough without the added worry of managing different school uniforms, different term times, et cetera. The disruption caused by this policy is giving real heartache and distress to thousands of parents. Rural communities are worried about what this means for young families, a concern shared by the chair of the Yorkshire Dales National Park Authority, which is working hard to keep young people in the dales. Ten parish councils have written in objecting to the policy change, as have teachers, school governors, parents, councillors and two of our county’s MPs.
Yet the irony is that there are no savings here. Indeed, the council will have to find even more money. More vehicles would be necessary over the next seven years to cover the increased number of routes. Children who previously would have been going on the same bus now will have to attend different schools based on the nearest school to their home. Indeed, depending on where they live, half the children in the same village may go to one school and half to another. It just does not make sense. This decision has been made without consideration for the geography of North Yorkshire and without a thorough impact assessment of costs and impact on families. An urgent rethink is therefore required.
The previous Government presented guidance, leaving it to each individual council to decide how best to implement it based on local considerations. North Yorkshire Council has, so far, failed to do that to a level that works for rural communities. Will the Minister consider firming up the guidance so that all councils have a clear idea of what is expected of them and implement their policies accordingly?
All Governments, be it local or national, want to save money, but no one should be doing that on the back of children’s safety and education.