PARLIAMENTARY DEBATE
Bus Funding - 18 November 2024 (Commons/Commons Chamber)

With your permission, Madam Deputy Speaker, I will update the House on our plans for better buses in England outside London. When we talk about fixing the foundations of our country, our minds should turn to the nation’s most popular form of public transport, because nothing props up our economy more or better supports our society than the 3.4 billion passenger journeys carried by our buses each year. They are more than just taking people from A to B: they are a lifeline for young and old, in cities or towns, binding us to jobs, public services and opportunity. From trips to the shops or a doctor’s appointment to a job interview, buses shoulder the daily needs of Britain and, in doing so, underpin every single one of our national missions. That is why, come what may, this Government will always back our buses.

Like much of the economy, our inheritance is dire. Some 40 years of failed deregulation have turned many lifeline bus services into liabilities. Passengers are let down as they sometimes wait for hours for buses that do not turn up. Areas are cut off as operators prioritise more viable routes in town centres. Fares continue to rise, and nearly 300 million fewer miles are being driven than in 2010. None of this was inevitable or an accident, but all of it was down to choices—political choices—paving the way for decline and placing a ceiling on the ambitions of many, especially the poorest in society, who catch 10 times more buses than trains. Enough is enough.

This Government have chosen to back our buses and the millions who rely on them every day. In last month’s Budget, we confirmed more than £1 billion in funding to improve services, protect vital routes and keep fares down. Today, we are distributing that funding, which means more than £700 million for local councils to deliver bus service improvement plans and better meet local needs, and a further £243 million for bus operators, including funding a long-standing grant to drive down fares and drive up services.

In many places, this is record investment, and every region and authority in England will benefit, especially areas that are historically underserved, such as rural areas and small towns. Councils such as Leicester, the Isle of Wight, Torbay and Cambridgeshire will see unprecedented levels of funding for services. Routes that are at risk will be saved and passengers will see faster, more reliable journeys. We are also putting money into safer bus stops and more accessible passenger information so that our bus sector is fit for everyone. I am delighted that metro mayors have welcomed the announcement, with city regions such as Greater Manchester, West Yorkshire and Liverpool receiving some of the biggest allocations.

That is not all. We are committing over £150 million to cap bus fares at £3, ensuring passengers do not face a cliff edge of higher prices from next year, particularly in rural areas where buses are a lifeline. The current fare cap was only funded until 31 December, meaning that without the action we are taking, some fares would have risen by 80%. We were not going to let that happen. We are investing to keep fares down, putting money back in people’s pockets, and to provide more frequent services so that more people can get to more places at more times of the day.

Not only are we a pro-investment Government, we are a pro-reform Government. We will not hesitate to overhaul parts of the system that simply are not working for passengers. If that means changes to how we allocate resources, we will make them; if passengers’ needs are not being met, we will prioritise them; and if laws are needed, we will introduce them. We have called time on the way that bus funding has historically been allocated. Previously, the Government made councils compete for funding, wasting resources and delaying decisions. That was overly complicated, led to inconsistent funding, and created uncertainty for authorities and operators. We are taking a fundamentally different approach.

We have allocated funding based on local need, population, the distance that buses travel, and levels of deprivation. That puts fairness at the heart of future funding and ends the postcode lottery for bus services. It ensures taxpayer money goes to the areas that are most in need, where it will have the most impact and where passengers will most benefit. This is the first stop on our journey to support local areas to take back control of services and deliver better buses across the country.

Finally, we will introduce our landmark buses Bill in the coming weeks—the biggest shake-up of the sector for 40 years. This Bill will allow councils across the country to adopt franchising models, as in Greater Manchester and London. That means local leaders taking back control of services, ensuring that routes, fares and timetables are all geared towards local passenger needs. This model works. It has been over a year since buses were brought under public control in Greater Manchester. Since then, passenger numbers have grown, reliability has improved, and new 24/7 services have been introduced. Roads are now managed in a way that works for buses, meaning that unexpected congestion or unplanned roadworks do not leave passengers stranded. That is what power in local hands looks like. It is why we are simplifying the franchise process to ensure local leaders waste no time in driving improvements for passengers. We will also remove the ideological ban on publicly owned bus companies so that our buses can finally be run for the public, by the public.

I have said it before, and I will say it again: when it comes to our public transport, we are moving fast and fixing things. After years of decline, we are putting passengers back at the heart of our buses through record levels of investment and generational reform. Last month’s Budget sent the signal that, even in difficult economic times, this Government will never take our buses for granted, because we know that investing in buses means investing in people, in communities and in the future growth of our country. Better buses are just a few stops away.

I commend this statement to the House.

I call the shadow Secretary of State.

I thank the Secretary of State for delivering her statement to the House, and for advance sight of it.

It was, of course, the last Government who provided £4.5 billion of funding to the bus sector since 2020 alone. Some £2 billion of that was allocated to support every single local transport authority in England to deliver their local bus service improvement plans, helping to support buses following the pandemic and ensuring more frequent, more reliable and cheaper bus transport across the country. Conservative Members are familiar with the need to properly fund bus services, but simply spending a bit more money will not necessarily improve outcomes. As such, we would welcome details on whether and how the Secretary of State can assure the House and the taxpayer that the money allocated today will actually go towards the improvement of bus services in the long term. How will she ensure that the money allocated today, and the bus service improvement plans that go with this investment, will remain aligned with any possible future franchising?

If the Secretary of State cannot give assurances on these points, there is a danger that the Government are taking short-term action that avoids facing complex long-term problems. Unfortunately, in the four months that this Government have been in office, that has been their approach to every single major issue they have faced so far. Whether it is the winter fuel allowance, the family farm tax or the increase to the bus fare cap, the Government seem at a loss as to why their policies are so unpopular, and why—only a few months into this Government—they are so deeply distrusted by the British public.

Governing is tough, and it requires taking real responsibility and considering the consequences of decisions before they are taken. For example, the decision to increase the bus fare cap from £2 to £3 will cost users more—[Interruption.] Wait for it. It will cost users more and—perversely—put at risk passenger services on certain routes, because it could counter-productively drive bus ridership down. Between 2022 and 2023, the £2 bus cap cut fares outside London by 7.4%, and the rate was 10.8% in rural and non-metropolitan areas in England. That is an example of a policy that worked, which is why the Government’s decision to increase the cap by 50% is such a disappointment.

The right hon. Lady, in defending her decision to hike bus fares, has been making the argument—she has done so again this afternoon—that the fare cap was to run only until end of the year. But as she knows full well—her Back Benchers can be excused for not knowing this—it is standard Government practice to set funding arrangements until a given date. She has guaranteed the £3 cap only until the end of 2025 and has made no commitment to extend it beyond that. She is also well aware that it was a Conservative party manifesto commitment to extend the cap and maintain it at £2 for the lifetime of this Parliament.

Not extending the £2 cap was not inevitable; it was a decision that the Government chose to make. Why do the right hon. Lady’s Government claim that they cannot afford to retain the £2 bus fare cap, which is making a real difference to the lives of passengers and the viability of public services across the country, and yet she can give hundreds of millions of pounds in additional funding here without any guarantee of success in improving service or delivery?

While I await the right hon. Lady’s answer, I have a theory. She is set on an undertaking—the ideological drive for bus franchising—and, make no mistake, it is ideological. Bus franchising does work in some places, but by no means will it work everywhere. The Government claim that they will not impose franchises everywhere, but there is a danger that her push for bus franchising will force local authorities into feeling that they are expected to undertake this ideological venture—one that they say they may well be unprepared and unequipped for—which would lead to a worse outcome for passengers. I call on the Secretary of State to make clear her answers to those questions and assure the House and the taxpayer that all the money allocated will be held to account in delivering real and lasting service improvement for passengers, whose interests should, of course, be at the centre of all decisions made by the Government.

I am grateful to the shadow Secretary of State for his questions, but I have to say that I will take no lessons from those on the Conservative Benches on good government. The approach to funding allocation is based on need, on deprivation, on population and on bus mileage, whereas his Government wasted millions of pounds in forcing areas to compete against each other, picking winners and losers, raising expectations and leaving some Tory-controlled areas such as Essex, where I was this morning, with absolutely nothing from the bus service improvement plan process. This formula and the funding allocated is a fair arrangement, ensuring that every area of the country gets the service levels it needs and can build the improvement plans that it wants.

I have to say that I will also take no lessons on ideology. For four decades, England outside London has experienced the failed deregulation of bus services, leading to a steady decline in passenger numbers. This funding is backed up by a once-in-a-generation reform to our bus policy, ensuring that we can deliver better bus services in every corner of the country, with public control backed up by funding and a Government who believe in buses.

I welcome the Secretary of State’s £9 million investment in the bus system across my constituency. Given the comments she has just heard, does she agree that it takes a Labour Government to really understand not just the cost but the value of public transport, and that our Labour Government are getting on with the job of delivering better buses for our communities?

I am grateful to my hon. Friend for her support. Not only are we ensuring record funding for the majority of areas in this country; we are pushing ahead with reform. There is no point throwing money at a broken system, as the previous Government were so content to do. I am delighted that we are able to deliver better bus services for the people of Luton.

I call the Liberal Democrat spokesperson.

I thank the Secretary of State for advance sight of her statement, which I warmly welcome. As she made clear, access to convenient, frequent and affordable buses is vital. They are critical to both employment and quality of life, particularly in rural areas. Sadly, however, too many parts of our country lack decent bus services, after years of Tory neglect. At a time when we desperately need economic growth, ensuring a comprehensive and affordable bus network is vital.

I congratulate the Secretary of State on securing the promised funding. However, we have some concerns. Uncertainty still surrounds how local authorities can seize the opportunities heralded in the promised changes to bus franchising. Furthermore, if, as the Secretary of State believes, buses are a lifeline for young and old, why is she hitting bus users with a 50% increase in fares? Polling commissioned by the Lib Dems and published last week showed that the hike will make a third of people less likely to use a bus, which will have a direct impact on individuals, communities, small businesses and high streets, and will hit the most disadvantaged in society the hardest. It would cost just £150 million a year to retain the £2 fare cap. Again, I ask her to reconsider.

I would like to ask the Secretary of State three specific questions. First, when will she publish the full impact assessment on the £2 bus fare cap, commissioned by her Department earlier this year? Secondly, will she guarantee that the new powers needed for local authorities to franchise bus services will be provided urgently, so that bus routes can be restored and new ones added as soon as possible? Lastly, although I welcome the change to the allocation process and the rejection of wasteful and expensive competitive bidding between councils, will she confirm that the new, more flexible system will not succumb to the temptations of pork barrel politics that we saw so frequently under the last Conservative Government?

I am grateful to the hon. Gentleman for those incredibly important questions. We have committed to publish the evaluation of the £2 bus fare cap shortly. We will introduce the better buses Bill in the coming weeks, which will allow every area of the country to avail themselves of the franchising powers and overturn the ideological ban on public ownership. My Department is also taking a much more proactive enabling role with local transport authorities, making sure that they have the capability and capacity to move to franchising. A significant amount of the funding settlement announced today is specifically for capability and staffing in local transport authorities.

Finally, on pork barrel politics, the reason behind today’s funding is that we are not in the business of picking winners and losers. We want to ensure that every corner of the country has the funding it deserves and the ability to avail itself of the style of buses that we have enjoyed in London for four decades.

Given that the Conservative party’s record was a 20% cut in the bus service operators grant, a 40p-in-the-pound cut in local bus funding, and 12,000 bus services cut between 2010 and 2023—a fall of more than half—does my right hon. Friend agree that some of what we have heard today is a bit rich?

My hon. Friend is absolutely right. We saw bus mileage and passenger numbers plummet under the last Tory Government. The hon. Member for Orpington (Gareth Bacon) talked about the funding that they provided, but they were throwing money at a broken system. This record funding for the majority of the country comes alongside massive reform so that we can give back control and deliver the better buses that every corner of the country deserves.

Bus usage after the pandemic was beginning to recover in Worcestershire, thanks to the £2 bus fare and improvements to routes. We are campaigning in Malvern for a better and more regular bus service between Worcester and Malvern, including on weekends, and for the reinstatement of the X43 service. We hoped that we would be able to do that with some of the £209 million of High Speed 2 money that was indicated for Worcestershire. Could the Secretary of State clarify what has happened to that funding, and how it links to her statement?

I am very pleased to confirm that Worcestershire is receiving £9.4 million dedicated for local bus services, a £4 million increase on this year. Of that, £5.4 million is revenue funding and can absolutely be delivered for the kind of bus service that the hon. Lady outlines.

I thank the Secretary of State on behalf of residents in Exeter and across Devon, who will be delighted with the £11.6 million of extra funding for our bus system. As I look around the Chamber, it is very clear who takes buses seriously and who does not. Devon and Torbay have already been given the powers to franchise and otherwise regulate bus services as part of the devolution deal signed off by the Government this year, yet Tory-run Devon county council has specifically said that it will not use those powers. Does she agree with me that Devon county council should take buses and passenger experience as seriously as this Government?

I am grateful to my hon. Friend. We know that franchising works; Greater Manchester went through the franchising process a year ago and it has already driven up revenues and passenger numbers. That has allowed Andy Burnham to step in and use that revenue to keep his own bus fare cap at £2. With the funding allocated today, local transport authorities can absolutely lower fares below the maximum of £3. I absolutely encourage areas that already have the powers to plan a bus network that is appropriate for their communities. The Department stands ready to work with Devon and Torbay to ensure that they can do that.

The new funding for bus services in Somerset is welcome, but my constituents often tell me that they need bus-rail links to connect areas not served by train stations. Will the Secretary of State outline the exact conditions for what each tranche of money must be spent on, to allow the council to plan much-needed improvements to services in rural areas?

The way the formula has been designed explicitly benefits rural areas, because a third of the allocation is dependent on bus mileage; that is why a number of areas, including Somerset, have done much better out of today’s allocation than in previous years. We are removing the controls that were previously required. All the funding will have to be spent on buses, but we believe it is right that local transport authorities take those decisions themselves rather than being constrained by central diktat from Whitehall.

I thank the Secretary of State for the £23 million for Kent county council. As a Kent county councillor—for a little bit longer—I have seen the ridiculous bidding wars and the hoops we have had to jump through for many, many years. Will the money be ringfenced for buses, while allowing Kent county council the flexibility to spend it on the KCC Travel Saver—a fantastic initiative to help kids get around Kent to local schools? Will the money facilitate that?

I am grateful to my hon. Friend for that important question. We have lifted controls on the funding from the Department. We think it is absolutely right that Kent county council should be able to decide where its bus money goes. The money will be ringfenced to ensure that it is spent on buses, but if areas want to spend it on providing concessions for younger people or care leavers, on buying new buses or on adding new services, that is entirely within its gift. It is right that Kent county council makes those decisions, rather than me.

Passengers in many parts of the country, including in my constituency, rely on cross-boundary bus services for shopping, visiting friends and family, and accessing vital public services. Too often, however, cross-boundary services can feel like a bit of an afterthought. Will the Secretary of State look at how funding mechanisms can be used to encourage passenger transport authorities to properly integrate those services, because community ties do not stop at county boundaries?

I am grateful to the hon. Gentleman for that important question, which I often hear. Cross-border services can be an absolute lifeline for people travelling out of area for work, and we can absolutely consider that issue as part of debate on the better buses Bill. I hope he will involve himself in that debate as it passes through the House.

It is a time of optimism for everyone who uses the bus in Welwyn Hatfield. First, after a long Labour party campaign we have doubled the frequency of one of the lifeline bus services to which the Secretary of State referred: between the urgent care centre at Queen Elizabeth II hospital and the Lister hospital. Secondly, we have heard today the announcement of £12.25 million for buses in Hertfordshire. I am hoping that my right hon. Friend can make it a hat trick, and confirm that local powers will be given to people in Hertfordshire to take buses back into public control.

May I begin by saying what an absolute joy it is to thank my hon. Friend the Labour MP for Welwyn Hatfield? He is absolutely right; I can confirm that the better buses Bill will extend powers to every local authority that wants to avail itself of franchising. Because we are well aware that not every transport authority in the country is in either London or Greater Manchester, the Department stands ready to work with those in more rural areas and with different types of transport authority, and to look at different models to give them the flexibility that will enable them to build a network that works for their communities.

I welcome the statement, and I particularly welcome the change in funding mechanisms—the move away from hoop-jumping, jam-jar funding to something that takes proper account of local needs; I hope very much that it will take proper account of rurality. However, I want to ask about another issue. Pensioners get free bus travel but children do not. In my rural constituency, the cost to people who do not fit the very narrow definition of those eligible for free bus travel is £1,000 a year. Is it not time to extend concessionary bus travel to children?

The hon. Lady is right, and that is one of the reasons why, throughout next year, we will be looking at the bus fare cap and considering whether we can extend a concession of some kind to young people. The point of the BSIP funding is that it can be used to deliver concessionary schemes as well. The hon. Lady should encourage her local authority to think about whether some of the revenue funding that has been allocated can be delivered for younger people.

More than 62,000 people have already signed my petition on change.org to protect the £2 bus fare cap. One young person explained how rising fares made it increasingly difficult for them to get to college, while another described public transport as a vital lifeline against loneliness. Affordable public transport is essential not only to alleviating economic hardship, but to addressing the climate crisis. Instead of increasing the fare cap by 50% to £3 and costing ordinary people hundreds of pounds more each year, why do the Government not take a page from the book of Greater Manchester’s Labour Mayor, Andy Burnham, who has committed himself to maintaining the £2 fare cap to ensure that public transport remains accessible to everyone?

The combination of Andy Burnham having franchised powers and this transformational funding is the reason why he can keep the fare cap at £2 in Greater Manchester. The combination of this transformational funding and more powers for authorities in the rest of the country will enable them to keep fares low as well.

I was disappointed that the Secretary of State did not mention the west midlands a single time in her statement. My constituents across Meriden and Solihull East rely on buses to travel to jobs, job interviews and education facilities, and to attend medical appointments. Does the Secretary of State recognise that the most vulnerable people in my community, and those who need buses the most, will be hardest hit by the 50% increase in the bus cap?

This afternoon I was delighted to meet the Mayor of the west midlands, Richard Parker, to talk about how he is taking forward the bus powers in the west midlands. I was also delighted to announce the £50 million funding settlement for the west midlands, which will be transformational for the hon. Gentleman’s constituents.

My constituents know that bus services are not good enough. We welcome the announcement of more powers and more funding for our area, but sadly the Conservative Tees Valley Mayor, Ben Houchen, has ruled out any exploration of giving the public control of bus services. Can the Secretary of State tell me how we can get around the bus blocker to ensure that there are decent bus services for Hartlepool constituents?

My hon. Friend is entirely right. Tees Valley has done very well out of today’s funding settlement, and I would encourage the Mayor to consider franchising options to deliver better bus services for the whole area. I can also confirm that through the better buses Bill we will be lifting the ideological ban on public ownership, so my hon. Friend can certainly consider working with his local authority to set up a publicly owned bus company if the Mayor does not choose to avail himself of those powers.

My young constituents in Bathampton who attend Ralph Allen school have to put up with an atrocious service. They first have to go into Bath city centre, and then they have to take a second bus out again, halfway back to where they came from, to get to school; they often miss school because of the infrequency of the services, and they pay twice. A direct service would be cheaper, better and safer. Bath council wants to make services better and franchise them directly, but the West of England Mayor is preventing that. Will the Secretary of State please urge the Mayor to listen to west of England authorities and allow them to franchise services directly and bring buses back under local control?

With her example, the hon. Lady describes exactly what franchising is designed to provide: the ability to design the services that people rely on and ensure that schoolchildren have a direct route to school. I would encourage all our mayoral colleagues to take forward franchising.

For 14 years, the last Government failed communities with a lack of investment in our bus services, leading to fewer services, reduced timetables, increasing unreliability and, ultimately, less control. In 2023, in my area alone, tens of millions fewer bus miles were travelled than in 2010. Does the Secretary of State agree that our towns, villages and rural areas depend on our buses, and that the almost £24 million announced for the North East combined authority will turn the page for my community, which was let down so badly by the previous Government?

My hon. Friend is absolutely right. Particularly in rural areas, buses simply are not good enough. Entire towns and villages are cut off, with no bus service before 9 am or after 5 pm, and that leaves people with their ambition completely curtailed. I am really pleased to have been working with Kim McGuinness, the Mayor of the North East, to ensure that, through the better buses Bill, we speed up the franchising process and make available to her as quickly as possible the powers to deliver better buses for my hon. Friend’s constituents.

The Barnett formula comparability factor calculates how much money each devolved nation receives as a consequence of UK Government spending in England. Wales’s comparability factor for transport is now 33.5%, compared with 95.6% for Scotland and Northern Ireland. Can the Secretary of State confirm whether this unfair funding arrangement applies to the new bus funding, and will she say how much Wales would receive in cash terms if it had the same percentage share of funding as Scotland and Northern Ireland?

I will take away the hon. Lady’s specific question about the percentages and write to her, but I was pleased to meet Ken Skates, the Welsh Transport Minister, just a few weeks ago to talk about the Welsh Government’s own ambitious plans for bus franchising across Wales. They are learning the lessons from Greater Manchester and London, and ensuring that every constituent in Wales will be able to benefit from better buses.

What a fantastic day for every person in Plymouth who uses the bus! We strongly welcome the Secretary of State’s announcement that £4.5 million will be invested in our buses over the next couple of years. She said that that represents an investment not just in buses, but in people and communities. That is fantastic to hear. Does she agree that today’s announcement represents the Labour Government investing in Plymouth?

I am very happy to confirm that we are investing in Plymouth, Plymouth’s people and Plymouth’s buses. Buses are an enormous engine of social justice, because, as I said earlier, the most deprived rely on them the most. I am afraid that is why they have been so badly neglected in this place for so long, but that will absolutely turn around under this Labour Government. Buses are my priority and this Labour Government’s priority.

I refer the House to my entry in the Register of Members’ Financial Interests: I am a member of Norfolk county council.

I am pleased that £15 million of the new funding will be heading to Norfolk to support our rural bus services, but the model for running buses in Norfolk is broken. We need a service that works for everyone, not just routes to and from the city and the occasional shopping bus. Will the Secretary of State assure me that this money will not just disappear into county council coffers or route subsidies, but instead help build the proper public transport network that North Norfolk needs?

The hon. Gentleman is absolutely right. Under the current system, money has been thrown hand over fist at operators, which have cherry-picked the most commercially viable routes, leaving local authorities to step in to subsidise the lifeline routes that people rely on. The benefit of areas being able to move to a franchised system, or indeed to set up their own publicly owned bus company, is that they can cross-subsidise properly across routes, and ensure that public money is spent in the best way and that we design routes and networks that really work for local communities.

On Friday I met members of the 17th Norwich scout group as part of UK Parliament Week, and they had lots of questions on transport. They are particular concerned about the reliability and availability of buses. Could the Secretary of State expand on how today’s announcement will support young people and how we can ensure that their voices are heard in this important conversation?

It is particularly important that we encourage young people on to buses, so that they can develop better behaviours and carry on using buses throughout their adult lives. I am delighted that we can confirm an additional £1.2 million in revenue funding for Norfolk. That revenue funding will be available to Norfolk to enable it to add additional services and improve the reliability and frequency of its local buses.

I would like to acknowledge the significant investment in my constituency and say how welcome this will be after Torbay’s first “bus back better” bid came back empty from the Conservatives. One of the issues that has led to significant cuts in our bus services is the recruitment of bus drivers. Can the Secretary of State advise us on how the Government plan to enhance the opportunities for the recruitment of bus drivers so that this money can be put to good use?

Torbay is a fantastic example of an area that has done well out of this funding settlement but was treated appallingly by the previous bus service improvement plan funding process. The hon. Gentleman is right to say that the recruitment of bus drivers is an issue that has plagued certain parts of the country, and we are working closely with the Department for Work and Pensions, through its “Get Britain Working” White Paper, to ensure that we can address recruitment and retention issues in the bus sector.

Just a few short weeks ago, when the new bus franchising arrangements were announced in this place, Conservative Members said that it would never work without funding attached. Now we have our answer, and the £1 billion of funding nationally and the £23 million of funding for Kent, which has already been mentioned, are hugely welcome and will certainly be a big boost for my residents in Dartford and also a big boost to our efforts to kick-start growth in the Thames estuary. Does the Secretary of State agree that boosting connections between our rural areas and our towns is vital to increasing access to jobs?

My hon. Friend is absolutely right. I get very frustrated in the transport policy space because we often think of investment only in big infrastructure as a mechanism by which to achieve growth, but buses are essential to delivering growth in local communities. They connect people to jobs, to opportunities, to education and to each other, so they are not only a massive engine of growth but one of the most important engines of social justice available in transport policy terms.

Many of my rural constituents have commented that the level of the bus cap is irrelevant when there are no buses to use, so I welcome the extra funding today, but does the Secretary of State agree that it should be directed to ensuring a minimum level of service for all users rather than increasing the frequency of services in urban areas that are already well served, as has happened previously in the west of England?

The hon. Lady is absolutely right. The biggest barrier to people getting the bus is the absence of a bus in lots of communities, and that is why we have directed this significant level of funding into communities to ensure that it is invested in local bus services. The benefit of moving to franchising means that we avoid adding more and more operators and more and more services to commercially viable routes, and that we can design a network that means that more areas and communities are served by the timetables and levels of service that they deserve. This is exactly what she addresses, and it will allow a minimum level of service that every area can expect.

May I take this opportunity to thank the Secretary of State for visiting the best town in the country, Harlow, this morning? I want to personally welcome the £17.8 million of funding for bus services in Essex, which is hugely important. Does she agree that the hidden benefit of improving our bus service in Essex will be to tackle social isolation, which is a particular issue in more deprived areas where there is no reliable bus service?

I was delighted to be in Harlow with my hon. Friend this morning to announce record levels of investment for Essex, another area that was badly underserved by the previous Government. Someone mentioned earlier that bus passenger numbers have been increasing since covid, which is true, but concessionary levels are still far below where they were before covid. I am afraid that potentially highlights the real issue of social isolation, and the hidden issue of older people not being able to access public transport. Only by delivering reliable, accessible bus services can we tackle social isolation and give older people the service they deserve.

The £6 million funding for Somerset is clearly welcome, although it is much less than was needed, considering that Somerset was rated as having the worst county bus service in the country. I particularly welcome the ending of the lottery that sets one community against another. Will the Secretary of State congratulate the Somerset bus partnership volunteers who, working with my Liberal Democrat colleagues now running Somerset council, prevented the previous Conservative county council from closing the park and ride, got night buses going and have begun a new transport hub since the bus station in Taunton was closed as a result of Conservative privatisation?

It sounds like the Somerset volunteers are doing a cracking job. I am very happy to congratulate them and to welcome the £6.8 million of funding announced for Somerset today.

Under the last Government, the number of miles travelled on bus routes in the north-east fell by 30%, but that number also measures the region’s aspirations unfulfilled, the opportunities lost and the job interviews and family events that could not be attended. I very much welcome the near £24 million of funding given to the north-east in this announcement. How will the Secretary of State work with mayors such as Labour’s Kim McGuinness to ensure that the aspirations and opportunities of people in Gateshead are given flight by this announcement?

My hon. Friend is right that the 30% cut to his bus services is absolutely shocking. Behind every one of those cuts is a human story of opportunity and ambition curtailed. I have been working closely with Kim McGuinness on speeding up the franchising process. Under the current legislation, Andy Burnham took six years to bring a single bus service under public control, despite having been elected twice in that period on a mandate to do so. We want to ensure that we drastically speed up the process and reduce the cost to local transport authorities and mayoral authorities of getting to franchising, so that the money can be spent effectively on local bus services.

Shropshire is one of the worst-served counties in England for public transport, having lost 63% of its bus miles since 2015, compared with a national average of about 19%. A person in Market Drayton who wants to get to the closest hospital in Telford, which is a 20-minute car journey, is looking at a five-hour round trip on the bus. We have only one service operating between Oswestry and Chester on Sundays. I am afraid that I was therefore quite disappointed by Shropshire’s £2.5 million revenue allocation in this round of funding. Will the Secretary of State meet me to learn about the huge transport challenges we face in Shropshire, and to see if we can do better?

I am delighted to confirm that Shropshire’s resource departmental expenditure limit allocation is £3.1 million, so the hon. Lady has already had a further £600,000 out of today’s statement.

The Government’s biggest reform to England’s bus system in 40 years sees the people of Portsmouth having power put back into the hands of our communities. Today’s funding, the cutting of red tape and the ending of the postcode lottery will ensure that bus routes are where they are needed, allowing everyone to access work, medical appointments and social life. Can the Secretary of State inform people in Portsmouth North how the funding award and the landmark buses Bill—soon to be tabled—will support these welcome changes to truly put people first?

I am grateful to my hon. Friend for standing up, for Portsmouth and its people, as she always does. Today’s funding settlement will be ringfenced towards buses to ensure that Portsmouth gets both the level of funding it needs and, crucially, the flexibility and control to deliver it where it is needed most. Portsmouth will be able to avail itself of the powers we will announce in the coming weeks to take back control of its bus services and to deliver routes, services and fare levels that are right for the people of Portsmouth.

A few hours ago, I marched with Eastbourne residents such as Jodie Atherton, and Eastbourne businesses such as DB Domestics and the Rosy Lee café in Seaside, against Conservative-run East Sussex county council’s car-crash bus service improvement plan, after the council failed to adequately consult residents or properly model the impact of the plan. Will the Secretary of State review East Sussex county council’s catalogue of failure in this area, and will she introduce safeguards to ensure that community voices are at the heart of any bus service improvement plan that the money she has announced today will fund in my patch of Eastbourne?

The hon. Gentleman raises some important points. It is right that local people have the mechanisms and ability to hold their local authorities to account. One such mechanism that we will introduce through the better buses Bill is a local network safeguard, which will ensure that the voices of communities and constituents are at the heart of any changes to local bus networks.

I strongly welcome my right hon. Friend’s statement. Some £5.4 million will be delivered for buses in my area, which is a significant increase in real terms on previous years. When I met the chief executive of my local chamber of commerce, he said that the biggest barrier to growth in our area was poor public transport. Does my right hon. Friend agree that this investment, as well as the Government’s proposed reforms, are crucial if we are to break down barriers to opportunity and grow our economy?

My hon. Friend makes an important point. This Government have put improving public transport at the heart of our priorities in order to deliver growth and allow people to access opportunity. Colleagues from across the House will recognise the picture he painted because, time and again, they will hear that the biggest barrier many businesses face to widening their labour market and ensuring people can access opportunity is poor local transport. That is why we are so delighted to announce this transformational funding.

I welcome the Secretary of State’s statement today that every region of England and Wales will benefit, especially rural areas and small towns. In Chippenham, large agricultural industries based in the countryside are currently having to find private transport themselves to get shift workers in and out of their businesses. The further education college has had to cap its hours because the last bus leaves so early that students cannot continue to follow a proper day’s work. This is a real problem for growth and skills in my rural constituency. Will the Secretary of State ensure that those counties that are not currently part of a wider mayoral system get the funding they need?

Colleges and large employers that use shift workers are two of the institutions that often raise with me their frustration about local bus services. The problem with the current system is that nobody has the ability to require operators to run services according to timetables or shift timings. The move to franchising will allow local areas to design such services and ensure that buses run when shifts finish or colleges open or close. The new funding formula model will ensure that rural areas get the funding they deserve.

My right hon. Friend will not be surprised to hear that I welcome the £124 million settlement for the south-east and the £23 million settlement for Kent, which represents the biggest proportion of any allocation in the south-east. It is striking that in the past 14 years there have been 20% fewer bus miles in Kent because of the last Tory Government. Will she join me in challenging Tory-run Kent county council to use this money and the powers offered to it by this Labour Government to make better buses services for places such as East Thanet?

My hon. Friend is a true champion for the people of Kent, and this is a record investment in them and their bus services. The area was badly underfunded by the previous Government and Kent lost out repeatedly in the bus service improvement process. The funding will help to deliver better bus services, but if Kent county council chooses to avail itself of the powers that will come its way as a result of next month’s better buses Bill, then that will be the moment when it can deliver a public transport network and better bus services that serve all Kent constituents.

I welcome today’s statement. Will the Secretary of State commit to ensuring that funding will go to UK-based bus manufacturers, such as Wrightbus in Northern Ireland, which are reliable and efficient, and whose clean-energy buses meet the needs of customers as well as our environmental obligations? How will she ensure that we support the best of British?

I was delighted to announce half a billion pounds of investment in Wrightbus just a few weeks ago. Those buses will make their way around the country and are fully electric—cleaner, greener, and providing a better service for passengers. We will announce some measures shortly to encourage investment in UK-manufactured buses. We have already announced the establishment of an expert panel in order to ensure that buses ordered in this country are built in this country.

I warmly welcome the announcement that over £40 million will be coming to the East Midlands combined authority, which covers Derbyshire and Nottinghamshire, for investment in our local buses. I know that Mayor Claire Ward and other local leaders will spend that money very effectively. Does the Secretary of State agree that this is an opportunity for people to get ahead in work, leisure and their social interactions, and will help us to get to net zero?

My hon. Friend is right that this is a massive moment for the east midlands, with the new mayoral authority and this record level of funding for bus services. Of course the authority will go into the 2027 city region sustainable transport settlements round. Buses are an enormous opportunity to meet all our missions. That is why I am pleased to work across Government on our mission boards to ensure that buses contribute to both our growth mission and, crucially, our net zero mission.

Buses are essential in my constituency, which is why I am grateful to the Government for the £50 million invested in the West Midlands combined authority area. When operators cut services, such as the 46 bus that goes through Hamstead in my constituency, it is devastating for the community. After decades of failed deregulation, I am grateful that the Government are turning the page. Does the Secretary of State agree that it is much better for local leaders to have control over local bus services?

My hon. Friend is right: cutting services such as the 46 has real-world implications for people attempting to access work, see their friends and family, or get to the local high street. Having a franchised system under the Mayor, Richard Parker, will mean that he has control. He can contract out the 46 service and require an operator to run it. At the moment, when an operator cuts a service we have no say or control over that, which is what leads to those terrible real-world consequences.

I thank the Secretary of State for coming to the Chamber personally to give that statement.