Written evidence submitted by Green Alliance (BCC0115)

Green Alliance is an independent think tank and charity focused on ambitious leadership for the environment. Our work crosses climate, the natural environment and resource use. Since 1979, we have been working with the most influential leaders in business, NGOs and politics to accelerate political action and create transformative policy for a green and prosperous UK. Transport is currently a major focus of our Low Carbon Future theme as it is the highest emitting sector in the UK. We would be very happy to offer our Policy Advisor Rosie Allen to give oral evidence as part of the Committee’s inquiry.

Summary

Buses are essential for communities across the UK, providing access to jobs, education, healthcare, and leisure while addressing social isolation. They also play a critical role in shifting journeys from cars to public transport, helping to reduce emissions from surface transport—the highest-emitting subsector in the UK. Despite this, the sector faces systemic challenges, including a long-term decline, underfunding, deregulation, and pandemic-related setbacks, leaving many areas, particularly rural ones, with inadequate services. This submission highlights key reforms to revitalise bus networks, including enabling local authorities to franchise services, ensuring sustained and equitable funding, and adopting a statutory Bus Service Guarantee. It also explores integration, demand-responsive transport, and international best practices to support economic resilience and deliver emissions reductions in line with climate targets.

Background

Buses are the lifeblood of local communities, described by a former Transport Secretary as "an engine of social justice".[1] They provide essential access to jobs, education, healthcare, and leisure, helping to prevent social isolation.

But in many parts of the UK are simply not working. Fixing the foundations of the bus service is a challenge, in the face of long-term decline, under-funding, historic deregulation, and damage from the pandemic. While still the most used form of public transport, there are almost one billion less bus journeys per year than pre-pandemic, and between 2008 and 2023 in some rural areas buses were cut by more than 80 per cent.[2] [3]

Surface transport continues to be the most emitting subsector of the UK. While there is a climate impact of bus fleet decarbonisation, there are far more emissions reductions to be found in bus journeys displacing journeys that would have otherwise been taken in private cars.

Polling shows that improving buses is the most popular way to use local transport budgets, ahead of road building.[4] As of 2023, a majority of the UK public wanted bus services in the hands of their council or mayor (59%) above private companies (15%).[5]

The government has introduced the Bus Services (No. 2) Bill [HL] seeks to amend the Transport Act 2000 to enhance the regulation and provision of local bus services in England. The focus of the bill is on expanding the ability to franchise bus services to all local transport authorities, and on making this process simpler and faster. It also includes measures that address current issues, such as the safeguarding of school services and encouraging the roll-out of zero-emission buses.

Green Alliance welcomes these objectives. However, the bill misses the opportunity to ensure the recovery of lost routes, safeguard the most socially and economically necessary routes, and to improve information provision at bus stops or set a deadline for the transition to zero emission buses. 

1. How the Government’s proposed reforms of powers over buses in England, and recently-announced funding, should take into account the particular challenges of rural areas and local authorities outside major cities, and how authorities in these areas can make best use of those powers and funding.

Extending the ability to franchise, moving to accelerate the process, and enabling municipal bus companies to be set up are crucial steps in protecting bus services that Green Alliance has previously called for.[6] There is, however, a risk that areas under budget constraints will not have the capacity to benefit from the change as large combined authorities, like Greater Manchester, have done. Franchising is resource-intensive and requires significant planning and capacity, which many rural and smaller local transport authorities (LTAs) may lack. Unlike larger combined authorities, smaller LTAs are often constrained by tighter budgets and fewer staff resources and may be unlikely to commit resources to the project of franchising in the near future, they may wish to focus their constrained budgets towards recovering lost routes, or protecting socially and economically necessary routes.

Green Alliance welcomes the move away from the competitive funding model previously used to allocate funding under the Bus Service Improvement Plan (BSIP). The shift to a formulaic approach in the latest funding tranche is a step forward. However, funding certainty remains a significant issue. Allocations should be set further in advance to enable LTAs to develop more ambitious and comprehensive plans to enhance rural bus networks. Without this certainty, authorities risk remaining in reactive rather than strategic planning modes.

2. The effectiveness of recent Government policy in tackling declines in bus services.  

The current draft of Bus Services (No. 2) Bill has made some progress in recognising the importance of safeguarding bus services, but it has not gone far enough to address the continuing decline in provision. The current framework does not include measures to protect the existing bus network or actively support the recovery of lost routes. While the bill encourages local authorities to identify necessary services, this alone is insufficient. Local authorities must also be encouraged to identify gaps in bus service provision, focusing on areas where additional routes could enhance social outcomes or stimulate economic activity. Filling these gaps should be prioritised to ensure equitable access to essential services.

Green Alliance advocates for the inclusion of a Bus Service Guarantee in the Government’s policy framework. This would ensure that every community has access to a minimum level of bus service, tailored to local needs. Under such a guarantee, local authorities would work with the Department for Transport to define these minimum service levels and ensure additional routes are provided where necessary. Targeted funding would be essential to make this feasible.

Examples from other European countries, such as Switzerland, demonstrate how service guarantees can successfully deliver comprehensive and reliable networks tailored to local contexts. A similar proposal was included in the Private Members' Bill, the Bus Services Bill, recently introduced by Helen Morgan, MP, and would be a vital addition to current Government policy. Without provisions like a service guarantee, declines in bus services are likely to persist, particularly in rural areas and those with significant economic challenges.

The Government’s decision to raise the bus fare cap from £2 to £3 is unfortunate, particularly as bus patronage remains vulnerable following the pandemic. A higher fare cap risks discouraging current and potential passengers, exacerbating the long-term decline in bus usage. Rural areas, where journeys to urban centres are often longer and more costly, are likely to be disproportionately affected. If the £2 fare cap cannot be reinstated, we urge the Government to guarantee the £3 cap until at least 2030 to avoid a pricing cliff-edge that could alienate riders further and undermine efforts to stabilise and grow bus use. Extending the £3 cap to the end of the parliament would support communities struggling with the cost of living and incentivise low-carbon public transport use, while reducing air pollution and congestion.

3. How effectively bus services function as part of integrated multi-modal networks that improve mobility for people who live in areas with declining services.  

Achieving a significant modal shift from car journeys to public transport and active travel is essential to meet environmental targets for transport. While the rollout of electric vehicles plays a role in reducing emissions, it is unlikely to deliver the necessary reductions alone unless deployment significantly exceeds current projections. The Labour party promised in its Get Britain Moving policy paper to set targets for modal shift to lower emissions from the transport sector.[7] Increasing bus use by aligning services more effectively with other sustainable transport modes is a critical component of this modal shift.

Research conducted by Green Alliance in collaboration with Cardiff University demonstrates the potential impact of integration. The model shows that better synchronising bus timetables with train schedules could reduce car miles driven by nearly 3 billion miles annually, with bus miles increasing by over 3 billion per year. [8] This highlights the importance of smooth interchanges in encouraging greater bus use and reducing reliance on private vehicles.

Integration can go even further by addressing barriers to multi-modal journeys. For example, buses with more flexible space can accommodate passengers with bikes, mobility aids, or pushchairs, enabling them to better access train stations and other modes of sustainable transport. Providing this level of convenience would not only enhance mobility for those in areas with declining services but also support a more inclusive and accessible public transport network.

4. The social and economic impacts of poor connectivity on access to education, healthcare, employment, and social inclusion in communities, as well as on the economy of towns and villages. 

Improving bus services should be seen as an enabler for the government’s growth and opportunity missions, and a key way it can address regional inequality. Research by KPMG has highlighted the critical role of buses in local economies. Bus passengers spend £39.1 billion annually in local businesses, and over 2.2 million commuters rely on buses to get to work, collectively earning £72 billion per year. For every £1 invested in improving bus services, the economic benefits range from £4.55 to £5. [9] This underscores the significant opportunity cost of underutilising bus services—missed potential for economic growth that remains unrealised.

When consulting for our bus report during the previous parliament, Green Alliance engaged with rural MPs who emphasised the profound social and economic impacts of declining bus services. Communities affected by axed routes frequently experience disconnection and isolation, both socially and economically. MPs described how residents viewed bus services as fundamental to community cohesion, akin to post offices in symbolising a community's ability to support a fulfilling and independent life. Even those who do not use buses themselves often see the decline of services as emblematic of a broader inability of their community to meet essential needs.

Recent analysis further highlighted the negative impact of declining services. This showed that bus cuts have led to an estimated 1.1 billion extra miles driven in cars and taxis in 2023 alone; people living in the most deprived areas of England seeing a ten times larger cut to bus provision than those in the least deprived areas.[10]

5. The effectiveness of current funding models and governance structures in enabling local transport authorities and commercial operators to improve, sustain and keep bus services outside major metropolitan areas affordable, and the potential effectiveness of alternatives.  

The current privatised model of bus governance—excluding the few franchised and municipal operators—places responsibility for profitable routes with commercial operators, while Local Transport Authorities (LTAs) must shoulder the cost of socially necessary but unprofitable services, often within tight budget constraints. This system has contributed significantly to the widespread decline in bus services across the country, particularly in rural areas.

Granting all LTAs the ability to franchise their services will enable a more equitable approach for those who are able to pursue this route. Where profits from high-demand routes could cross-subsidise essential but less profitable services. However, the franchising process is costly and resource-intensive, requiring significant planning capacity and expertise. After over a decade of funding cuts, many rural LTAs lack the resources and in-house skills needed to successfully undertake such a transition.

While governance reforms such as franchising are critical, they must be accompanied by funding distributed equitably and measures to recover lost routes, particularly in areas where franchising is unlikely to occur in the near future. Over the past decade, many vital routes — used for commuting, accessing healthcare, or maintaining social connections — have been cut. Green Alliance welcomes the intention to introduce safeguards for socially and economically necessary routes, with a particular focus on rural areas. Amendments to the bill should encourage LTAs to identify gaps in service provision and prioritise recovery efforts for routes that deliver the greatest social and economic benefits.

Looking further ahead, Green Alliance recommends that the Government establish a long-term plan to achieve baseline standards of bus provision that ensure every community benefits from reform. Switzerland provides a successful international model, where regions are required to deliver a statutory minimum level of bus services, tailored to population size and local amenities, a policy often referred to as the "every village, every hour" approach.[11] This should be embedded as a key aim in the government’s forthcoming National Integrated Transport Strategy.

6. Evaluating the potential of alternative service models, including demand responsive transport (DRT) and community transport, and other innovations or technologies which could support or replace buses serving less populated communities, and what steps the Government should take to support them.  

Demand responsive transport (DRT) and community transport models can provide valuable solutions for less populated communities where traditional bus services are not financially sustainable. While DRT is often costly on a per-passenger basis, it can be an effective means of linking rural areas to mobility hubs, facilitating access to larger transport networks. When operated as community transport projects, DRT services can also help foster community cohesion and generate useful data that can inform future service planning.

However, there are challenges with these models. DRT schemes are not always embraced by users, especially in rural areas where populations may be more hesitant to use app-based systems, as seen in some dial-a-ride services. Accessibility can also be an issue, particularly for older people or those less familiar with technology.

There are examples of successful schemes, such as France’s widespread use of DRT in rural areas. These show the potential of these schemes in regions with an urban-rural divide. France has an accompanying right to reasonably costed public transport, enshrined in law.[12] Domestically, the HertsLynx service, launched in 2022, demonstrates how DRT can successfully serve rural areas, providing critical connectivity where fixed routes are not feasible.[13]

To make the most of DRT and community transport, the Government should focus on integrating these models with existing public transport networks, ensuring they remain inclusive and accessible, particularly for older and digitally excluded populations. Additionally, supporting community-led transport projects and encouraging their growth can help address gaps in provision and reduce social isolation.

7. How successful Enhanced Partnerships (Eps) have been so far in improving bus services outside major urban areas, whether franchising is likely to provide a better framework for these areas, and whether there are alternative models worth exploring.  

Enhanced Partnerships (EPs) have shown promise in improving bus services outside major urban areas, but their effectiveness is mixed and often dependent on local conditions. Cornwall provides an interesting case study, where the EP governance model has been used to improve service coverage by adopting a more holistic approach to tendering. By grouping socially and economically necessary routes together in a mass tender, Cornwall has managed to ensure that more profitable routes help subsidise the costs of the least profitable, thereby protecting essential services in rural areas. This approach helps to maintain a more sustainable network, even in less profitable parts of the service.

While EPs have their merits, franchising could offer a better framework for rural areas in the long term. Franchising would enable local transport authorities (LTAs) to directly manage bus services and ensure that socially necessary routes are prioritised and better cross-subsidised by profitable ones. However, franchising requires significant planning, resources, and central government support, which may be challenging for some rural authorities with limited capacity.

Alternative models worth exploring include hybrid models that combine elements of both EPs and franchising. For example, a more flexible approach to franchising, tailored to rural needs, could allow for a combination of public oversight with the operational efficiency of private operators. Such models could offer a balance between cost-efficiency and public service objectives, while maintaining the social and economic benefits of reliable bus services in rural areas.

January 2025

Endnotes