PARLIAMENTARY DEBATE
Buses: Tariff Harmonisation - 11 June 2026 (Commons/Commons Chamber)

Following the UK bus manufacturing expert panel meeting in March, my officials and I continue to engage with our counterparts across Government—including my right hon. Friend the Secretary of State for Business and Trade and his team, who are responsible for UK Government tariff policy—on support for UK bus manufacturing and the transition to zero emission fleets.

Imported diesel buses have a 16% base rate tariff, yet electric buses have a tariff rate of 10%. As we seek to transition fully to electric after 2030, and considering the existential risk that the under-investigation Chinese competition currently presents to the 50,000 jobs that depend on UK bus manufacturing, will Ministers consider raising this matter urgently with Business and Trade Ministers to encourage them to harmonise those rates at 16% at least?

I regularly raise issues affecting the bus sector with the Department for Business and Trade and will continue to do so. I will raise the specific point my hon. Friend makes with the relevant Minister and write to him following that conversation.

Bus companies and local authorities are rightly being encouraged to buy electric buses. However, half of new buses in the United Kingdom are bought from China, which does not support our great British bus industry. Will the Minister elaborate on whether the current procurement rules for electric buses are suitable for encouraging bus companies to buy British?

On the UK bus manufacturing expert panel, we have managed to strike an agreement with all mayoral combined authorities to insist on at least 10% social value in their contracts, which I think is a really important step forward. We will continue to work with operators and combined authorities to do our best to ensure that British manufacturers are able to compete.