Billions of pounds in bus funding must be protected and made easier to use to get more people using buses and to improve journeys for passengers, councils say today.
Billions of pounds in bus funding must be protected and made easier to use to get more people using buses and to improve journeys for passengers, councils say today.
The Local Government Association says the current, fragmented funding system for running bus services should be simplified, to help local transport authorities better meet local needs and ensure more people get back on board.
Councils and operators have already worked hard in getting bus usage back to pre-Covid levels, with recent figures showing national boarding numbers have reached 95 per cent of what they were in January 2020.
Currently five different funding pots support local bus services, each with their own rules and conditions attached. Two of these funds run out by March 2025 and councils say it is vital this good work is not undone by a failure to protect bus funding.
The LGA says rolling these multiple different subsidies into a single fund would make it easier for local leaders to determine and shape better bus services for all, alongside at least maintaining existing levels of funding.
Latest figures show in the year ending March 2023, estimated total net support for bus services in England from central and local government was £2.2 billion, of which £0.7 billion (32.1 per cent) was for concessionary travel.
The LGA is bringing together passenger groups and local leaders at its Annual Conference in Harrogate today (23 October) to agree a vision for the future of local bus networks and what more needs to be done by operators, councils and government to get more people back on board.
The Government has already announced new measures in its Buses Bill, to enable all councils to take control of local bus services. The LGA says this positive move now needs to be accompanied by funding reforms, to help encourage operators to come forward and provide the services people need.
Cllr Adam Hug, transport spokesperson for the LGA, said:
“Bus passenger numbers are inching closer to what they were pre-pandemic and councils want to go even further to get more people back on board. Passengers have been waiting ages for properly funded buses, but for councils five different funding streams can turn up at once or sometimes not at all.
“Streamlining the current labyrinth of bus funding into a single, long-term pot would give councils greater control and spending power over where buses can go and get the most out of every valuable pound.
“This will benefit everyone in need of a local bus service, boosting growth through providing safe and reliable access to jobs, services and the high street, while also keeping communities connected and reducing air pollution.”
Notes to Editors
The five funding pots are the Bus Service Improvement Plan (BSIP), BSIP plus, Bus Service Operators Grant (BSOG), concessionary fares support and the national £2 fares cap. The £2 bus fare cap is due to run out at the end of this year, unless it is extended again by government in the upcoming Budget. BSIP funding is due to end in March 2025.
Domestic Transport Usage by Mode – Bus boardings outside of London on Monday 7 October 2024 were 95 per cent of the volume observed on the equivalent day in the third week of January 2020.
Annual bus statistics: year ending March 2023 (revised) – In the year ending March 2023, estimated total net support paid in England was £2.2 billion, of which £0.7 billion (32.1 per cent) was for concessionary travel.
Ahead of the Autumn Budget the LGA has written to Chancellor Rachel Reeves on stabilising council finances and protecting vital services and warning that any further funding local government funding cuts would be “disastrous”. The letter is also signed by the County Councils Network, the District Councils Network, London Councils, SIGOMA, Core Cities and Key Cities.
This year’s LGA Annual Conference is being held in Harrogate between October 22-24. Speakers include Deputy Prime Minister Angela Rayner MP, Local Government Minister Jim McMahon MP, and Liberal Democrat Local Government spokesperson Vikki Slade MP. Other speakers will include Fatima Whitbread, retired Olympic medal-winner, Anne Longfield, children’s campaigner, Nicole Jacobs, Domestic Abuse Commissioner, and Matthew Taylor, Chief Executive at NHS Confederation. For a media accreditation code please email [email protected].