Local bus services in England
Public Accounts Committee
Open
Inquiry
Opened: 6 May 2025
Parliament page
Local bus services are the most used form of public transport. The Department for Transport published its national bus strategy for England, Bus Back Better , in 2021. Government strategy has sought to make buses more frequent, reliable, better coordinated and cheaper, alongside supporting post-pandemic recovery. While bus services are …
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16
Recommendations
13
Conclusions
1
Report
1
Oral session
2
Letters
1
Event
Activity timeline 6 events
14 May
2026
2026
19 Jan
2026
2026
29 Oct
2025
2025
Report published
4 Sep
2025
2025
17 Jul
2025
2025
Oral evidence
17 Jul
2025
2025
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
17 Jul 2025
View on parliament.uk
Conrad Bailey · Department for Transport
Jo Shanmugalingam · Department for Transport
Stephen Fidler · Department for Transport
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| 50th Report - Local bus services in England | HC 892 | 29 Oct 2025 | 29 | Responded |
Recommendations & Conclusions
29 results
2
Conclusion
Accepted
50th Report - Local bus services i…
Update committee on progress towards consolidated, long-term bus sector funding, ensuring rural spending
The Department’s funding for buses has been short-term, fragmented and poorly targeted, hindering effective investment in the sector. Over the period 2019–20 to 2024–25, the Department provided funding to the bus sector via 13 different grant schemes. Most of these …
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Government Response
The government has consolidated bus funding into the Local Authority Bus Grant (LABG) from 2025-26, announced allocations until 2029-30, and introduced a rural metric. Funding letters will set expectations for spending on bus schemes to prevent clawback or reduction.
HM Treasury
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3
Conclusion
Accepted
50th Report - Local bus services i…
Finalise bus service performance measures and develop evaluation plan for interventions
The Department does not know how it will measure local transport authorities’ performance on bus services. Bus service performance varies significantly across the country, yet the Department does not have the data it needs to identify under-performing areas and help …
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Government Response
The government is reviewing its monitoring and evaluation plan for bus interventions, with several evaluations completing in 2026 and 2027. It will develop an enhanced role for Transport Focus to monitor bus service performance using a consistent outcomes framework to identify and share best practices.
HM Treasury
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4
Conclusion
Accepted
50th Report - Local bus services i…
Support local authorities to understand bus operating models, learning from franchising pilots
The Department has not yet provided local transport authorities with the information they need to understand the relative merits of different bus operating models, including franchising. Franchising (whereby local transport authorities take on more responsibility for bus services and award …
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Government Response
The government is supporting local transport authorities (LTAs) by providing guidance, including a handbook on regulatory models published in November 2025, and offering funding and active support for those exploring franchising. It plans to publish updated guidance and an Enhanced Partnership Manual with advice on improvements and best practices.
HM Treasury
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5
Conclusion
Accepted
50th Report - Local bus services i…
Explain targeted skills support and share best practices via Bus Centre of Excellence
The Department could do much more to support local transport authorities with the skills they need and to help them apply relevant good practice. Local transport authorities’ capacity and capability to deliver bus service improvements is not good enough. In …
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Government Response
The government plans to significantly expand the role of the Bus Centre of Excellence (BCoE) with increased funding and enhance Transport Focus's role to monitor bus service performance. It will use a survey of LTAs and outcomes data to target support to address identified capability needs.
HM Treasury
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6
Conclusion
Accepted
50th Report - Local bus services i…
Detail barriers for elderly and disabled bus users, promoting concessionary pass uptake
The Department does not understand why elderly and disabled people are using buses far less than they used to. The Department could not adequately explain to us why elderly and disabled people have not returned to buses to the same …
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Government Response
The government committed to working with local transport authorities (LTAs) to promote the English National Concessionary Travel Scheme (ENCTS) and ensure accessible application processes. It will embed promotional expectations in guidance and funding conditions, and intends to request evidence from LTAs on their actions to improve promotion and accessibility.
HM Treasury
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7
Conclusion
Accepted
50th Report - Local bus services i…
Explain how local authorities are implementing bus passenger improvements through technology
Bus passenger experience is variable across the country in part due to patchy implementation of technology. The Department’s open data system should enable bus passengers to access real-time information for any bus in England, but this does not match bus …
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Government Response
The government is funding technological improvements through Bus Service Improvement Plans and supporting the implementation of a national, contactless smart ticketing solution outside London. It is also helping local transport authorities use data via the Analyse Bus Open Data Service and providing guidance through the Bus Centre of Excellence.
HM Treasury
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1
Conclusion
Accepted
50th Report - Local bus services i…
Report examines local bus services in England, excluding London
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Transport (the Department) on local bus services in England outside London.1 This report excludes bus services in London, which has for …
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Government Response
The government will set out its approach to bus services in England outside London and the overall outcomes it seeks to achieve by the end of the current Parliament in the next few months. It will monitor outcomes at the local level through an outcomes framework, but will not set national quantitative targets.
HM Treasury
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8
Conclusion
Deferred
50th Report - Local bus services i…
Rural bus service recovery remains challenging, requiring LTA-led improvements
We asked the Department what action it is taking to support rural areas which have seen significant cuts to bus services and poor performance, leaving would-be passengers stranded.13 The Department acknowledged that the recovery in bus usage was particularly challenging …
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Government Response
The government's response discusses animal vaccine availability, research, and future plans, including an action plan by late 2026, completely unrelated to the recommendation on rural bus services.
HM Treasury
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9
Conclusion
Deferred
50th Report - Local bus services i…
UK bus services perform poorly, demonstrating inadequate connectivity and significant economic costs.
Bus services in the UK perform poorly compared to those in other European countries. Fewer people can reach local city centres within 30 minutes than the European average. This poor connectivity costs the UK economy more than £23 billion per …
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Government Response
The government's response discusses sanitary and phytosanitary agreements with the EU and strengthening resilience to animal disease, completely unrelated to the recommendation on UK bus connectivity compared to Europe.
HM Treasury
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10
Recommendation
Accepted
50th Report - Local bus services i…
Department's vision for bus services remains vague regarding specific improvements and timelines.
We asked the Department what good performance looks like and when bus services will get there. The Department told us that the bill it is, at time of writing, sponsoring through Parliament sets out a clear vision for the bus …
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Government Response
The government agreed to set out how it will clearly communicate its vision for bus services, including setting out what outcomes it wants to achieve and by when, with a target implementation date of April 2026, and intends to publish a summary of its vision for, and approach to, bus services in England outside London, and the overall outcomes the department seeks to achieve by the end of this Parliament.
HM Treasury
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11
Recommendation
Accepted
50th Report - Local bus services i…
Fragmented short-term bus grant schemes hinder effective investment by operators and authorities.
Over the period 2019–20 to 2024–25, the Department provided £5.9 billion of funding to the bus sector via 13 different grant schemes. Most of these were short term, which hindered effective investment in the sector by bus operators and local …
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Government Response
The government will consolidate bus funding through the Local Authority Bus Grant (LABG), which combines Bus Service Improvement Plan (BSIP) funding and the Local Authority Bus Service Operators’ Grant (LA BSOG). Funding letters will set an expectation that the funding should be spent on eligible bus schemes, and a rural metric will be introduced for revenue LABG.
HM Treasury
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12
Recommendation
Accepted
50th Report - Local bus services i…
Bus funding reform proceeding slowly for 12 years, with further delays anticipated.
We are concerned about the slow pace of reform to date.24 The Department has been attempting to reform its main bus grant to operators for 12 years.25 The Department told us it had been overtaken by events and had wanted …
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Government Response
The government agreed to update the committee on its progress towards providing longer-term, consolidated funding to the bus sector and explain when it will be able to detail its plans more fully, including how it will reflect the additional challenges for rural areas and how it will ensure funding for buses is spent on buses, and has implemented the recommendation by consolidating bus funding and introducing a rural metric.
HM Treasury
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13
Recommendation
Accepted
50th Report - Local bus services i…
Competitive bus grant allocation leads to unequal funding, failing to consider rurality.
The Department’s decision to allocate some grants competitively has meant funding per person varied significantly. On average, mayoral combined authorities received significantly more bus service improvement funding (£34 per person) than county councils (£19 per person).27 We asked the Department …
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Government Response
The government agreed to update the committee on its progress towards providing longer-term, consolidated funding to the bus sector and explain when it will be able to detail its plans more fully, including how it will reflect the additional challenges for rural areas and how it will ensure funding for buses is spent on buses, and has implemented the recommendation by consolidating bus funding and introducing a rural metric.
HM Treasury
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14
Recommendation
Accepted
50th Report - Local bus services i…
Unring-fenced bus grants face risk of diversion from intended services by local authorities.
The financial pressures on local authorities are such that the Department cannot be sure its bus grants to local areas will be spent on bus services if they are not ring-fenced. We asked the Department how it plans to ensure …
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Government Response
The government agreed to update the committee on its progress towards providing longer-term, consolidated funding to the bus sector and explain when it will be able to detail its plans more fully, including how it will reflect the additional challenges for rural areas and how it will ensure funding for buses is spent on buses, and has implemented the recommendation by consolidating bus funding and introducing a rural metric.
HM Treasury
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15
Recommendation
Accepted
50th Report - Local bus services i…
Department's inadequate monitoring hinders identification and support for under-performing bus service areas.
Local transport authorities achieve very different levels of bus service and the Department’s lack of monitoring means it cannot identify under-performing areas and help them improve.31 The Department does not have standard measures or defined outcomes for reliability, affordability, frequency …
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Government Response
The government agreed to finalize a basket of measures and explain how it will use an outcomes framework to hold local transport authorities to account for their performance on bus services and support those performing less well by December 2026; this includes developing indicators and testing them with authorities.
HM Treasury
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16
Recommendation
Accepted
50th Report - Local bus services i…
Department's evaluation programme lacks outcomes focus, providing poorly defined and unhelpful data.
The Department’s evaluation programme is focused on specific funding streams, rather than on the outcomes it wants to achieve. Its most recent attempt to collect data to understand the impact of its funding interventions was poorly defined and did not …
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Government Response
The department already has a Monitoring and Evaluating (M&E) programme in place for buses and is reviewing and further developing the programme following the Bus Services Act 2025 and wider departmental changes.
HM Treasury
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17
Conclusion
Not Addressed
50th Report - Local bus services i…
Bus franchising requires significant time and cost, considerably exceeding Departmental estimates.
The Department of Transport is encouraging more local transport authorities to consider franchising their bus services. Franchising, whereby local transport authorities take on more responsibility for bus services and award contracts to private operators, gives local transport authorities more control …
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Government Response
This item is a conclusion but the response addresses the recommendation 4, as the conclusion is linked to the recommendation. The Department is committed to supporting local transport authorities to deliver better bus services and share learnings, including through the Bus Centre of Excellence, shared guidance and advice, a handbook and toolkit, active support and funding to local transport authorities exploring franchising, and updated guidance with actionable steps for Enhanced Partnerships, including an EP Manual.
HM Treasury
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18
Recommendation
Accepted
50th Report - Local bus services i…
Department remains complacent about significant financial risks of bus franchising for local authorities.
We were concerned the Department was being complacent about the significant level of financial risk for individual local transport authorities if they opt for franchising. The Department told us that some of the transition costs in Greater Manchester would have …
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Government Response
The government agreed to support local transport authorities in understanding the benefits and risks of different models for running bus services and optimize how they work, including learning from the pilots of franchising models, providing guidance based on its review of enhanced partnerships, and promoting effective low-cost and no-cost approaches by Summer 2026.
HM Treasury
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19
Conclusion
Not Addressed
50th Report - Local bus services i…
Local transport authorities lack capacity and capability for bus franchising models.
We asked the Department whether local transport authorities had sufficient information to know what the right delivery model is for their local area.42 The Department said its role is to help local authorities understand the options and acknowledged that many …
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Government Response
This item is a conclusion but the response addresses the recommendation 4, as the conclusion is linked to the recommendation. The Department is committed to supporting local transport authorities to deliver better bus services and share learnings, including through the Bus Centre of Excellence, shared guidance and advice, a handbook and toolkit, active support and funding to local transport authorities exploring franchising, and updated guidance with actionable steps for Enhanced Partnerships, including an EP Manual.
HM Treasury
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20
Recommendation
Accepted
50th Report - Local bus services i…
Enhanced partnerships demonstrate mixed success in improving bus services in rural areas.
We asked the Department whether the only way to deliver benefits to passengers was to pursue franchising, with the associated transfer of risks from the private to the public sector. The Department clarified that local transport authorities must choose between …
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Government Response
The Department is committed to supporting local transport authorities to deliver better bus services and share learnings, including through the Bus Centre of Excellence, shared guidance and advice, a handbook and toolkit, active support and funding to local transport authorities exploring franchising, and updated guidance with actionable steps for Enhanced Partnerships, including an EP Manual.
HM Treasury
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21
Recommendation
Accepted
50th Report - Local bus services i…
Local transport authorities' capacity for delivering bus services remains under significant strain.
Local transport authorities have had to scale back their transport planning and delivery capacity to focus on statutory functions such as social care. Further devolution and moves to franchising will considerably increase pressure on their capacity and capability to deliver …
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Government Response
The government agreed to explain how it will make sure its support is targeted to the skills local transport authorities most need and identify and share, through the Bus Centre of Excellence, best practice that is tailored for areas with similar characteristics by Spring 2027.
HM Treasury
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22
Recommendation
Accepted
50th Report - Local bus services i…
Target Bus Centre of Excellence support to specific outcomes and most-needed skills.
The Department established the Bus Centre of Excellence in 2023 to support the capability needs of the bus sector, providing free training courses and seminars to share skills and good practice for local government and bus sector staff.52 While we …
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Government Response
The department will enhance Transport Focus' role to monitor bus service performance and outcomes, using an outcomes framework to identify effective practices. It will significantly expand the role of the Bus Centre of Excellence (BCoE), and have already conducted a survey of local transport authorities to identify capability needs.
HM Treasury
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23
Recommendation
Accepted
50th Report - Local bus services i…
Department lacks insightful analysis explaining disparities in bus service performance across areas.
The Department’s focus, in what it told us, was on the best-performing local transport authorities around the country. This was at odds with experience in our constituencies, sometimes even in neighbouring counties.54 We questioned why there was such disparity in …
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Government Response
The government agreed to explain how it will make sure its support is targeted to the skills local transport authorities most need and identify and share, through the Bus Centre of Excellence, best practice that is tailored for areas with similar characteristics by Spring 2027.
HM Treasury
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24
Conclusion
Acknowledged
50th Report - Local bus services i…
Reduced bus usage by older and disabled people is not assured as genuine choice.
Older and disabled people are taking far fewer bus journeys than other passengers relative to pre-COVID bus usage; the number of concessionary journeys by older and disabled passengers is 29% lower than before COVID. The Department explained that fare paying …
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Government Response
The response outlines potential factors contributing to the decrease in concessionary journeys, including discretionary travel, cost of living, and a shift to online activities. They will provide a further update to the committee within six months.
HM Treasury
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25
Recommendation
Accepted
50th Report - Local bus services i…
Disabled people face persistent barriers to bus use due to inaccessible information and infrastructure.
Disabled people face persistent barriers to bus use, including lack of accessible travel information at bus stops and on-board, inaccessible ticketing systems and bus doors, as set out in evidence submitted by Transformative Transport Service Design Initiative.59 Further evidence from …
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Government Response
The department will write to the Committee with a further update on its understanding of the barriers preventing concessionary travel within six months, and details of its plans to address them.
HM Treasury
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26
Recommendation
Accepted
50th Report - Local bus services i…
Department acknowledges poorer bus experience for disabled people, with accessibility measures underway.
The Department acknowledged that disabled people have a poorer experience on buses and that it needs to do more. It told us about its various measures to help improve accessibility, such as supporting operators to implement improvements to audible and …
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Government Response
The government agreed to write to the committee within six months setting out the specific barriers preventing elderly and disabled passengers getting back on buses and its plans to address them, with a target implementation date of April 2026.
HM Treasury
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27
Recommendation
Accepted
50th Report - Local bus services i…
Roll-out of real-time bus information faces challenges despite open data compliance.
Technology could vastly improve bus passengers’ experience on England’s buses. For example, providing live updates on when a bus will next be stopping would reduce uncertainty and help passengers plan their journeys.65 We asked the Department what it is doing …
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Government Response
The department will write to the committee within six months explaining how it is helping all local transport authorities implement improvements for bus passengers through better use of technology, and is committed to supporting local transport authorities in implementing technological improvements for bus passengers.
HM Treasury
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28
Recommendation
Accepted
50th Report - Local bus services i…
Technological improvements like bus prioritisation and integrated ticketing enhance the bus passenger experience.
Other technological improvements which local areas have made include bus prioritisation and ticketing. Nottingham and Derbyshire are using interactive signalling to prioritise buses at busy junctions.69 Speeding up bus journeys can also be achieved by simplifying ticketing. The Department told …
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Government Response
The government agreed to write to the committee within six months explaining how it is helping all local transport authorities implement improvements for bus passengers through better use of technology, with a target implementation date of April 2026, including supporting a national smart ticketing solution.
HM Treasury
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29
Conclusion
50th Report - Local bus services i…
Digital exclusion poses challenges for demand-responsive transport uptake and cost-effectiveness.
One digitally enabled service the Department has been supporting in 17 rural areas is demand-responsive transport, where smaller buses or taxis provide a link from rural areas into local towns. Passengers use an app to request journey times in advance.72 …
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HM Treasury
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Correspondence 2 letters
14 May 2026
To committee
Letter from the Permanent Secretary at the Department for Transport relating to Local bus services in England, 29 April 2026
Parliament page
4 Sep 2025
To committee
Letter from the Permanent Secretary of the Department for Transport relating to the oral evidence session held on 17 July, Local bus services in England, follow up, 31 July 2025
Parliament page