Sustainable Aviation Fuel Bill (Fourth sitting)

Paul Kohler Excerpts

Committee stage
Thursday 17th July 2025 Public Bill Committees

[Mr Paul Kohler (Wimbledon) (LD)]

I beg to move, That the clause be read a Second time.

If we are serious about meeting our climate obligations and economic ambitions, then transparency, accountability and evidence-led policy must be at the heart of the legislation. The ambition of the Bill to build a whole new industry is to be lauded, but it lacks the level of scrutiny that such a large project entails. The Bill sets a framework, but frameworks alone do not produce fuel. Nor do they deliver jobs, attract investment or lower emissions. We must not content ourselves with well-intentioned ambition. After previous broken promises by—I am sorry to say—the Conservatives—to have five plants up and running by now, we have already seen that ambition alone will not deliver what we need.

To truly build the sustainable aviation fuel industry, we must track progress, identify bottlenecks and act on evidence. That is what the new clause provides. It demands a detailed assessment of SAF production levels, uptake by airlines and investment in infrastructure. Further, it requires the Government to consult widely with a full range of stakeholders, widely enough drawn to include employees and unions, as well as producers, suppliers, environmental experts, academics and, importantly, the communities whose lives will be affected, whether by new plants, changes in aviation demand or environmental impact.

The new clause would ensure that Ministers come back to the House not with warm words but with evidence, consultation and a plan. I urge the Minister to accept it in the spirit in which it is offered—constructive, collaborative and committed to making the legislation truly fit for purpose.

[The Parliamentary Under-Secretary of State for Transport (Mike Kane)]

I thank the hon. Member for the new clause, which seeks to ensure parliamentary scrutiny and that the SAF revenue certainty mechanism will run effectively. I also thank him for saying that I am full of warm words, because I am.

I agree with the hon. Member that it is important to have measures to assess the impact of the Bill and make necessary recommendations; however, significant developments in the SAF industry are unlikely within the first 12 months after the Bill becomes an Act. We are committed to deliver the revenue certainty mechanism as soon as possible, but it is vital that such complex contracts are considered carefully, with time taken to get them right. That will involve negotiations with potential SAF producers.

I reassure the hon. Member that we are committed to transparency in the Bill. We have committed to publishing details of who receives revenue certainty contracts and on what terms. We will also continue to publish annual data on the volume of SAF supplied under the SAF mandate. I hope that he accepts the explanations in the spirit in which they are given and withdraws his new clause.

[Mr Kohler]

I am grateful for the Minister’s flattering and sometimes unctuous words. He makes a good point about 12 months not being sufficient time to give such a report, and I acknowledge the assurances that he has given. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 8

Review of the Potential Conversion of Industrial Sites for Sustainable Aviation Fuel Production

“(1) Within twelve months of the day on which this Act is passed, the Secretary of State must lay before Parliament and publish a report into the merits of converting disused oil refineries and other relevant existing industrial sites into facilities for the production of sustainable aviation fuel.

(2) The report required under subsection (1) must include, but is not limited to—

(a) an assessment of the technical and operational feasibility of such conversions;

(b) an evaluation of the economic viability of such conversions;

(c) the cost effectiveness of such conversions compared to new build production facilities, taking into account—

(i) the ability to use existing infrastructure such as tanks and pipelines;

(ii) the complexities of environmental remediation and site preparation.

(iii) the availability and suitability of a skilled workforce within proximity to such sites.

(d) recommendations for government actions to facilitate and incentivise such conversions, where they are deemed beneficial for enhancing the resilience and increasing the domestic production of sustainable aviation fuel industry.

(3) In preparing the report required under subsection (1), the Secretary of State must consult relevant stakeholders, including, but not limited to—

(a) sustainable aviation fuel producers,

(b) representatives of the oil and gas industry and workforce,

(c) environmental organisations,

(d) local authorities, and

(e) academic experts.

(4) The report must be accompanied by a statement from the Secretary of State on how the findings of the report will be addressed through Government action.”—(Mr Kohler.)

This new clause mandates the Secretary of State to publish a report within twelve months, reviewing the merits of converting disused oil refineries and other industrial sites for Sustainable Aviation Fuel production.

Brought up, and read the First time.

[Mr Kohler]

I beg to move, That the clause be read a Second time.

New clause 8 calls on the Secretary of State to publish a report within 12 months on the merits of converting disused oil refineries and other existing industrial sites into sustainable aviation fuel production facilities—and there is an opportunity to have such a report early on. Many Members present, including, notably, the hon. Member for Falkirk, have spoken about the strength and possibilities of SAF to reinvigorate and reuse industrial sites.

The UK has several disused oil refineries and industrial sites, which already possess critical infrastructure—storage tanks, pipelines, grid connections—and are often located near skilled workforces familiar with complex industrial processes. That presents a real opportunity to repurpose existing assets, accelerating the deployment of SAF production, supporting local economies, and reducing the cost compared with greenfield sites, but we must proceed with a clear understanding of the technical feasibility, operational requirements and environmental considerations for such conversions.

Environmental remediation, site preparation and ensuring community support are complex challenges that require careful evaluation. The new clause would mandate a thorough, evidence-based report that would address such technical, economic and environmental factors, and include consultation of a wide range of stakeholders, including SAF producers, the oil and gas workforce, unions, environmental organisations, local authorities and academic experts. The findings will help the Government to shape policies and incentives that maximise the benefits of such conversions where appropriate. I do not think we can simply leave it to market mechanisms; the Government need to intervene here.

This is not about preserving the fossil fuel past, but transitioning our industrial heritage and workforce, and some of our dying economies, to a new sustainable future. The UK’s industrial regions deserve a just transition that leverages their existing strengths to help to power the green economy. The new clause would be a step towards securing the resilience and growth of a domestic SAF industry that can create good jobs, strengthen supply chains and reduce reliance on imports. I urge the Minister to welcome this practical proposal, accept the new clause and commit to a clear timeline for delivering the report. The future of UK aviation depends on not only ambitious targets but pragmatic steps to make those targets achievable and bring the country with us. The new clause would help us to take one such step.

[Greg Smith (Mid Buckinghamshire) (Con)]

New clause 8 has considerable merit. It is always preferable where new industrial facilities are to be built—in this case for the production of sustainable aviation fuel—for those identified sites to have had former brownfield status and former industrial use. I have no argument with that element of the new clause.

The one note of caution I have on the new clause is that many of the existing sites—certainly oil refinery sites—are not necessarily located in the right places currently for certain SAF technologies. That includes the e-fuels and power-to-liquid solutions, which require, as part of the process, electrolysis and the creation of green hydrogen. Of course, if the hydrogen element that goes into making the SAF is not green hydrogen, the whole problem becomes rather academic—we could still make the fuel, but the reality is that it would not be as green as we want it to be. Those SAF production facilities, by definition, would need to be located in places with potential large-scale offshore wind, electricity production or, possibly, nuclear generation.

If we look across the world at such fuel plants that have been created, Porsche, for example, chose the hills of Chile to produce its particular fuel, because it can leverage off the wind power that it can get up there. In our country, Orkney seems to have been a popular site for harnessing the offshore wind technology available up there. While I fully support the principle that underpins the new clause—for many SAF production sites to be on former industrial or oil refinery sites—I simply wish to add the note of caution that they might not be suitable for every application and technology out there.

[Mike Kane]

On new clause 8, the hon. Member for Wimbledon is right to talk about deindustrialisation. Growing up in the 1970s, I saw the impacts of that, particularly on the east side of Manchester, with the chemical and mining industries being wiped out. In this day and age, we are still getting over that in my great city. I reassure him that we are supporting the SAF industry, in part, to grasp this opportunity for deindustrialised areas. Emerging SAF projects are often located on former industrial sites, and I remind the Committee that, if we do this right, our low-carbon fuels industry can support up to 15,000 jobs and £5 billion to the economy by 2050.

I also reassure the hon. Member that work is ongoing across Government on the future of our refineries. We are acting urgently in response to the deeply concerning news of insolvency at Prax Lindsey oil refinery, and have put £200 million into the National Wealth Fund to back investment at Grangemouth. I want that work to continue at pace, and am conscious that specific sites will need to be considered on a case-by-case basis. Commissioning an additional separate report would not be beneficial, and would risk delaying potential investment decisions. Given that, I ask the hon. Member to withdraw the motion.

[Mr Kohler]

I am saddened by the Minister’s response. We cannot just leave it to the invisible hand of the market to make sure that sensible decisions are made regarding old oil refinery sites.

[Euan Stainbank (Falkirk) (Lab)]

In Grangemouth, we have £200 million dedicated from the National Wealth Fund, and Project Willow, which has two SAF options contained within it. Does the hon. Member acknowledge that, and acknowledge that we need to move at pace to deal with deindustrialisation in such places? His new clause would risk potentially adding another layer of report-making, rather than the real action that needs to be taken in places such as my constituency.

[Mr Kohler]

Such a report would not require there to be a delay. The report would be within 12 months, and we have already heard from the Minister that not much will happen within the first 12 months. That was the excuse given earlier in Committee for not doing various things. A report to focus attention on these sites would be useful and helpful, and I really cannot see why there should be any objection to it.

Question put, That the clause be read a Second time.

Sustainable Aviation Fuel Bill (Third sitting)

Paul Kohler Excerpts

Committee stage
Thursday 17th July 2025 Public Bill Committees

[Mike Kane]

Clause 6 enables the Secretary of State to introduce, through regulations, a levy on aviation fuel suppliers to meet the costs of payments made by the counterparty to SAF producers and to cover the counterparty’s administrative costs. We plan to fund the revenue certainty mechanism through a levy on industry because it is right that the costs of decarbonising air travel are borne by the aviation sector rather than the taxpayer. We are levying aviation fuel suppliers because placing the levy higher up the supply chain spreads costs across the sector and reduces administrative burdens, and because aviation fuel suppliers will benefit from the greater volumes and lower prices for SAF that the revenue certainty mechanism will create.

Broadly, if the counterparty has incurred costs in a set period, we will cover those costs by levying aviation fuel suppliers based on their share of the fossil fuel market during that period. We are continuing to work closely with industry on the details of how the levy will operate. This approach is in line with the approach of other contracts-for-difference-style schemes, such as in the renewable electricity sector where there is a levy on electricity suppliers. The clause will also ensure that the counterparty’s obligations and activities in respect to the levy are appropriately regulated. I assure Members that the regulations under this clause will be subject to consultation and the affirmative parliamentary procedure, so there will be further opportunities for scrutiny in this area.

Clause 7 enables the levy regulations to require a person who is liable to pay the levy to provide financial collateral to the counterparty. This acts as a failsafe if there is cause for concern about non-payment. It ensures that if a levied party does not make a payment, the counterparty can take any owed money through the collateral. Without this power, there is a risk that non-payments to the counterparty lead to the Government needing to provide financial assistance to ensure that the counterparty can make payments under the revenue certainty mechanism contracts.

Clause 8 enables the levy regulations to include provisions to ensure that the levy is administered efficiently. It allows the Secretary of State to confer statutory functions on the counterparty, such as collecting levy payments and enforcing regulations. It is vital that the counterparty has the powers and functions it needs to operate efficiently and effectively.

Clause 9 will allow us to make regulations on who will calculate matters relating to the levy, and how—for example, how levy payments should be calculated and who is responsible for doing so. It ensures that calculations are made in an appropriate way by people who are qualified to do so. The regulations made under this clause will be subject to consultation and the affirmative procedure.

[Mr Paul Kohler (Wimbledon) (LD)]

I rise to speak on clause 6 and new clause 6. As we have heard, clause 6 would create a levy on fuel producers. While I do not necessarily believe that to be the wrong approach, as with much of the Bill, the devil will be in the detail that is not available for us to scrutinise here, for obvious reasons. As my hon. Friend the Member for Sutton and Cheam will make clear, there may be unintended consequences if the regulations are not designed correctly.

In my opinion, leaving much of the mechanism to a later date is not necessarily a bad thing—I agree with the flexibility that is being put in place. With a new, emerging technology and industry, ensuring that the Government’s hands are not tied at this early stage is a strength, not a weakness. That notwithstanding, some assurances should be given about how the mechanism will be designed, and how the potential flaws raised in the written evidence received by the Committee will be sidestepped. I point in particular to the written evidence from Valero.

Clause 6(3) implies that the levy will be based on criteria relating to the historical market share of fuel suppliers. That has been raised by those in the industry as potentially having unintended consequences. As I raised yesterday with the Minister, who I am not convinced gave me the clearest of answers, there have been worries that it may allow new market entrants not to pay any levy, as they will not have had a previous market share. Will he commit to ensuring that the levy regulations will account for such obvious loopholes?

It is clear that the challenge of decarbonisation, both in aviation and beyond, is great and will not be solved without collaboration with our closest international partners. I therefore tabled new clause 6, which would require the Government to review the differences between our approach to sustainable aviation fuel and that of our European partners in the European common aviation area. With 71% of international air passengers at UK airports travelling to or from Europe, it seems sensible that we should strive to be in broad alignment with Europe with regard to SAF.

I appreciate that there may be differences: in the case of the early part of our SAF mandate, we are going further and faster than the ECAA, but our European partners may accelerate beyond our thresholds later on. However, we believe it is important to remain mindful of what our partners across Europe are doing in an industry that has international competition at its very heart. The new clause would ensure that the Government are fully aware of differences in policy, and alive to any unintended consequences or differences that the Bill could result in for those in the aviation industry. We think that would be helpful.

I would welcome the Minister’s observations on both the mechanism that we have suggested and the broader issue of alignment with our European partners. This is, of course, a probing clause. Can the Minister assure the Committee that the Government will keep a watching brief on what the ECAA are doing with regard to SAF from here on?

--- Later in debate ---

[Mr Kohler]

I have a brief question. When the Minister talked about the effect of £1.50 either way on airfares, was he talking about the effect of just the levy or the effect of the mandate as well? As we heard on Tuesday, the mandate will have far more of an effect on prices than the levy, given the premium that is likely to be repayable on SAF.

[Mike Kane]

Well done to the hon. Member for Mid Buckinghamshire; he pulled it out of the fire there with the amendments. He is right that we are putting SAF on the statute book. We should have put it on the statute book years ago, which is why it was in our manifesto and we are doing the right thing now. I will address the questions about £1.50 in a moment.

Amendment 4 tabled by the hon. Member would put a requirement on the counterparty to report on the effect of the introduction of the revenue certainty mechanism on air travel prices. Once operating, the revenue certainty mechanism is expected to make minimal changes to fares with an average ticket price, as we have said, decreasing or increasing by up to £1.50 on average per year. I remind him that that is less than a bus fare on Andy Burnham’s Bee Network in Greater Manchester where I live. I would offer to pay it, but it is quite cumulative over time and I do not have that type of resource—I am happy to fund the hon. Member for one year at £1.50 if he so wishes. That figure comes from a DFT analysis.

The costs of the scheme and the impact on ticket prices will be kept under continual review. The Government will also set the approach to the allocation of contracts, the number of contracts awarded and the scale of support they provide. Those controls will help to minimise any potential impacts on airfares. The costs of the scheme will also be reported in the DFT annual report and accounts in the usual way. I therefore ask the hon. Member to withdraw his amendment.

The hon. Member for Wimbledon asked whether the figure refers to the mandate or the revenue certainty mechanism. I assure him that it is just the revenue certainty mechanism.

--- Later in debate ---

[Luke Taylor]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 3

Review of the supply of bioethanol for use in sustainable aviation fuel production

“(1) The Secretary of State must, within six months of the passing of this Act, publish and lay before Parliament a report reviewing measures to encourage the supply of materials for Sustainable Aviation Fuel.

(2) The report under subsection (1) must include—

(a) an assessment of the impact of the closure of bioethanol plants on the ability to encourage overall increases in sustainable aviation fuel production;

(b) options for mitigating any adverse impacts on the availability of supply of sustainable aviation fuel by the closure of bioethanol plants;

(c) recommendations for any necessary Government action to promote a stable supply of bioethanol for Sustainable Aviation Fuel.”—(Mr Kohler.)

This new clause would require the Secretary of State to lay before Parliament a report outlining measures to encourage the supply of materials for SAFs, including considering the impact of bioethanol plant closures on encouragement to increase supply.

Brought up, and read the First time.

[Mr Kohler]

I beg to move, That the clause be read a Second time.

New clause 3 would require the Secretary of State to publish a report within six months of the Act’s passing, reviewing how we can better secure the supply of bioethanol for use in sustainable aviation fuel production.

The success of the UK’s sustainable aviation fuel ambitions will rely not only on bold targets and optimistic projections, but on the reliable availability of the resources needed for manufacturing. Bioethanol will be a resource that can be part of the manufacturing process for SAF, and help support a low-carbon industry in the UK, yet while the Government continue to laud their commitment to green aviation, they have stood by while domestic bioethanol production is at risk from Donald Trump’s bully boy tactics.

Since the signing of the UK-US trade deal, the owners of two UK bioethanol plants based in Hull and Teesside have threatened to close the sites as the trade agreement fundamentally undermines their business position. This Government have given US ethanol producers a 1.4 billion litre tariff-free quota—equivalent to the UK’s entire annual demand for the product—and completely undercut the industry, making the UK vulnerable to the whims of, to put it at its mildest, the mercurial Trump Administration.

The new clause would require the Government to assess the impact of plant closures on SAF production potential, set out options to mitigate supply risks and, crucially, recommend the policy steps needed to promote a stable domestic supply of bioethanol. We cannot afford to leave this to chance, or to the good will of a US President who, as we all know, simply cannot be trusted. If the Government are serious about scaling up SAF production, they must ensure that the raw materials are available. That means a proper strategy to support and stabilise the UK’s bioethanol sector.

[Greg Smith]

I absolutely understand and appreciate where the hon. Gentleman is coming from with this new clause. This topic came up in the oral evidence sessions and on Second Reading.

It is of great concern that the slightly lower tariffs deal done with the United States of America has clearly and materially threatened UK production of bioethanol, which of course has many uses. Many of us on the petrol station forecourt will have seen the curious E5 and E10 labels on the petrol pumps, which is about the ethanol blended with the regular fossil fuel. Our consumption of it as a country is particularly high.

As we are debating the potential future of bioethanol in sustainable aviation fuel production, it is incumbent upon the Government to reflect, within the scope of the Bill, on how much domestic supply there can be. So much of the Bill is underpinned by sovereign capability and fuel security—a point on which the Opposition and I think the Liberal Democrats are equally aligned on; it is so important—and so surely this new clause must also be important to the Government. I ask the Minister to reflect on that when he responds.

[Mike Kane]

I am extraordinarily proud that we have a Prime Minister and a Government who are rebuilding the UK’s reputation across the world once again, building trade deals with our closest partners across the planet, whether that be India, America or the recent agreement with the European Union. That is where Britain should be—leading and involved, not on the fringes as we have been for many years.

We are debating sustainable aviation fuel, but this is also about decarbonising the planes that will fly in our skies for generations to come. That US trade deal is zero tariff on aviation technology, which is a huge deal for this country, making it a world leader again in the future.

However, I am worried for the workers and families who have been affected by the trade deal. Ministers and officials, including the Business and Transport Secretaries, have met the companies consistently during this challenging time—those companies were struggling regardless of the time—to understand their concerns, discuss what action could be taken and to support them, because that is what good Governments do. The Department for Business and Trade is in discussions on requests for support from the UK bioethanol sector. As a responsible Government, there is a series of strict criteria and well-established due diligence processes that we must follow to consider such requests.

While I would like to see a thriving UK bioethanol sector, we would not expect a significant impact on the SAF mandate if there were to be a reduction in that sector’s production. That is because the UK bioethanol plants use crops that are not eligible for the SAF mandate. The SAF mandate, which is the framework for the supply of SAF in the UK, sets targets based on the availability of waste feedstocks rather than crop feedstocks. The SAF mandate is a global scheme and can use fuels from all around the world, providing an opportunity to draw upon a diverse pool of feedstocks.

However, we also want to encourage a UK industry. In January, the Chancellor announced £63 million of funding this year to help grow UK supply of SAF through the advanced fuels fund, which has been further extended in the recent Budget through to 2029-30. The SAF revenue certainty mechanism—the subject of the Bill—will also boost investment in UK SAF production.

Finally, under the SAF mandate, a formal review of the whole scheme has been built into the legislation, with the first review taking place in 2030. That will provide an opportunity to make an assessment on the availability of SAF supply. The above steps demonstrate how many of the recommendations set out in the hon. Member for Wimbledon’s new clause are already being undertaken by the Government. Given that, I ask him to withdraw it.

[Mr Kohler]

I hear what the Minister says, but we think that not enough is being done to protect the bioethanol industry in this country. We will therefore push the new clause to a vote.

Question put, That the clause be read a Second time.

--- Later in debate ---

Brought up, and read the First time.

[Mr Kohler]

I beg to move, That the clause be read a Second time.

[The Chair]

With this it will be convenient to discuss new clause 5—Increasing greenhouse gas saving potential of sustainable aviation fuel—

“(1) The Secretary of State must, within six months of the day on which this Act is passed, publish and lay before Parliament a report which sets out a strategy for increasing the greenhouse gas emission saving resulting from the promotion of sustainable aviation fuel production in the United Kingdom.

(2) The report required under subsection (1) must include, but not be limited to—

(a) proposals for incentivising the research and development of Sustainable Aviation Fuels that maximise greenhouse gas emission savings;

(b) an assessment of, and recommendations for increases to, the minimum required greenhouse gas emission reduction in order for a Sustainable Aviation Fuel to be issued a SAF certificate;

(c) an assessment of, and recommendations for increases to, minimum ratios for renewable content in blended sustainable aviation fuels, for the purpose of more quickly reducing greenhouse gas emissions.

(3) Twelve months after the publication of the report required under subsection (1) and within every twelve months thereafter, the Secretary of State must publish a further report which—

(a) sets out progress against the strategy, and

(b) makes any necessary adjustments to the strategy as a result of developments in the sustainable aviation fuel industry.

(4) In this section, ‘SAF certificate’ has the meaning given in article 2 of the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024.”

[Mr Kohler]

As we are all aware, aviation is one of the most challenging sectors to decarbonise and one of the fastest growing sources of emissions worldwide. While other sectors benefit from mature, low-carbon technologies, aviation remains heavily dependent on fossil jet fuel, and is one of the few industries where there is not an alternative available already. The Bill will attempt to grow the alternative industry, but it is clear that its provisions are only the first steps on a long journey to reach net zero by 2050 in aviation. If we are serious about hitting net zero by 2050, we must be equally serious about tracking our progress and course-correcting where necessary.

New clause 4 would require the Secretary of State to conduct an annual review of what contribution the revenue certainty mechanism is making in helping the UK achieve its target of net zero aviation emissions by 2050. It is a simple step that would help us to understand further the impact our SAF policy is having on our net zero targets, and whether other changes or alterations will be needed in the jet zero plan. It would allow us to ensure we understand, year by year, whether we are making the progress the science demands. Are SAF volumes increasing fast enough? Are emissions falling across domestic and international routes fast enough? Are the technologies we are backing delivering real, verifiable carbon savings? To reach net zero, those are the questions we should ask, and we must ensure that we have the evidence base to do so. The new clause would help provide us with that information as a guard against complacency.

New clause 5 would also contribute to our net zero responsibilities. It would require the Secretary of State to, within six months of the day on which the Bill is passed, publish and lay before a Parliament a report that sets out a strategy for increasing greenhouse gas emission savings from SAF production in the UK. It would allow us to understand and ensure that we are implementing new technologies within SAF production. The point of SAF is to reduce the carbon cycle of jet fuel. We should be vigilant in ensuring that anything marked as SAF delivers just that.

New clause 5 consequently sets a minimum standard of the lifetime carbon emissions that can be classed as SAF, and ensures that that is monitored effectively. If we do not embed a culture of accountability, we risk drifting and passing legislation that sounds ambitious but fails to deliver at the pace required. With only 25 years left to decarbonise a sector that today remains overwhelming fossil fuelled, we cannot afford complacency. This Government have rightly set the bold target of net zero aviation by 2050, which the Liberal Democrats support, but targets must be matched with transparent measurement and a willingness to adapt. These new clauses would simply give us the tools to do just that, and I urge Members to support them.

--- Later in debate ---

[Mike Kane]

My kingdom for a chemistry degree! I will let the hon. Gentleman know the answer to his question in due course.

To go back to the point, new clause 5 would duplicate the process already embedded in the SAF mandate legislation. I therefore ask the hon. Member for Wimbledon not to press the new clause.

[Mr Kohler]

New clause 4 was of course a probing amendment, and the Minister has satisfied most of us that enough will be done to report on our progress towards net zero. I was less convinced by the Minister’s answer to new clause 5. With or without a chemistry degree, the point is a simple one: SAF is green, but some SAF is greener than other SAF. I am not convinced that the Government are yet embracing that or doing enough to work out which SAF should be pushed because it is the most beneficial to the environment. We will press new clause 5 to a Division, but not new clause 4. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 5

Increasing greenhouse gas saving potential of sustainable aviation fuel

“(1) The Secretary of State must, within six months of the day on which this Act is passed, publish and lay before Parliament a report which sets out a strategy for increasing the greenhouse gas emission saving resulting from the promotion of sustainable aviation fuel production in the United Kingdom.

(2) The report required under subsection (1) must include, but not be limited to—

(a) proposals for incentivising the research and development of Sustainable Aviation Fuels that maximise greenhouse gas emission savings;

(b) an assessment of, and recommendations for increases to, the minimum required greenhouse gas emission reduction in order for a Sustainable Aviation Fuel to be issued a SAF certificate;

(c) an assessment of, and recommendations for increases to, minimum ratios for renewable content in blended sustainable aviation fuels, for the purpose of more quickly reducing greenhouse gas emissions.

(3) Twelve months after the publication of the report required under subsection (1) and within every twelve months thereafter, the Secretary of State must publish a further report which—

(a) sets out progress against the strategy, and

(b) makes any necessary adjustments to the strategy as a result of developments in the sustainable aviation fuel industry.

(4) In this section, “SAF certificate” has the meaning given in article 2 of the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024.”—(Mr Kohler.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.

Blue Badge Eligibility

Paul Kohler Excerpts

Wednesday 16th July 2025 Westminster Hall

[Mr Paul Kohler (Wimbledon) (LD)]

It is a pleasure to serve under your chairship, Sir Christopher. I congratulate the hon. Member for Maidstone and Malling (Helen Grant) on securing this debate, and her constituent, Sandy, on bravely campaigning on this issue. It is people like her who make a real difference to this world—thank you.

A cancer diagnosis does not simply change someone’s medical needs; it changes the course of their life. Even the most basic tasks can become physically painful and emotionally draining. It may be a short-term issue during recovery or represent a permanent shift. In these circumstances, a blue badge can offer crucial support, making it easier to access vital services and maintain a degree of independence. The blue badge scheme provides essential parking concessions to help people with significant mobility challenges to park close to their destination, whether they are the driver or passenger.

Cancer treatment side effects, such as fatigue from chemotherapy, chronic pain or nerve damage, can all severely limit mobility. However, despite the profound and often sudden impact of such conditions, many people living with cancer or other life-altering illnesses, as we have already heard today, find they do not automatically qualify for a blue badge. The cost of travelling to medical appointments is already high, and for those undergoing frequent treatments and tests, it quickly adds up. Research shows that 93% of young cancer patients and their families travel to hospital by car and need a place to park. Furthermore, 71% say they struggle to afford travel costs, with parking charges contributing to an extra £250 a month. Many also report that parking arrangements at hospitals are inadequate. The charity Young Lives vs Cancer cited one parent who described hospital parking as a lottery:

“I can probably win the lottery better than I can get a parking space.”

In my constituency, a resident contacted me about her 83-year-old husband, who has blood cancer and neuropathy, uses a wheelchair, and cannot walk. Despite that, Labour’s Merton council lost his blue badge application, forcing his wife to resubmit it. That is unacceptable, and it highlights the pressing need for the more seamless blue badge process that we are advocating.

In other cases, the criteria for blue badge eligibility fail to map neatly on to fluctuating conditions such as cancer. That is why the Lib Dems are calling for a comprehensive review of the legislative framework for the blue badge scheme, as is everyone in the Chamber, I think. Like my hon. Friend the Member for West Dorset (Edward Morello) and the hon. Member for Chatham and Aylesford (Tristan Osborne), we want it to be more responsive to real-world need, more compassionate in its interpretation of eligibility and more efficient in delivery.

We also urge the Government to take advantage of their ambition for a single patient record. Much of the infrastructure exists already, particularly in cancer care. It is entirely feasible to implement an automatic offer of a blue badge where clinical records show clear mobility changes, as so eloquently argued for by the hon. Members for Strangford (Jim Shannon) and for Chatham and Aylesford.

Smaller but important changes we could make include amending blue badge signage, which we support, to clarify that not all disabilities are visible. That would help to reduce stigma and the misunderstanding faced by many users of the scheme. We are also pushing to ban discriminatory practices by taxis and private hire vehicles with a clear national standard for what an accessible city should be.

We remain firmly committed to improving accessibility across society. Public transport in particular must work for everyone, and we are campaigning for train stations around the country to meet essential accessibility standards, such as step-free access, safer and more inclusive platform designs, and level boarding wherever possible. Things such as that and blue badge accessibility are crucial to a society that cares for everyone and has an inclusive approach to how we live our lives.

Ultimately, we need a system that is fairer, simpler and more humane, one that recognises the challenges posed by cancer and chronic illness, even when those challenges do not fit neatly into a tick-box form or an online mechanism. A blue badge can mean being able to go to work, to reach a hospital, to attend a support group, or simply to visit a friend. It is about dignity, independence and inclusion. The very least we can do is to ensure that the system works as it should. Cancer and serious illness take so much from individuals and their families, access to parking should not be another burden that they are forced to carry.

Draft Transport Act 2000 (Air Traffic Services) (Prescribed Terms) Regulations 2025

Paul Kohler Excerpts

Wednesday 9th July 2025 General Committees

[Mike Kane]

I am grateful to the hon. Member for Orpington for stating the Opposition’s support. UK aviation enjoyed its most successful month in history in April. Over the next 20 years, we are looking at the doubling of numbers in aviation, and freight as well, so modernising our airspace is critical to making sure that there is resilience in the system.

Work was done under the previous Government, and I pay tribute to the former hon. Member for Witney, Robert Courts, for what he did, but Governments become sclerotic and the last Government did not get this measure over the line. I was glad that we committed to do it in our manifesto. What we are doing today by implementing that manifesto commitment and putting it into law will be a huge confidence boost for the aviation industry. When I have spoken to industry representatives, as I do all the time, including this morning, they tell me they have been looking forward to today, because the measure is a statement of commitment and intent.

The hon. Member for Orpington is absolutely right: who knew that flying in a straight line would cut carbon emissions? EasyJet gives the example of the journey from Jersey to Luton airport wherein the aircraft burns a third more fuel because of the path it has to take. Flying in a straight line is better for customers and for the environment, and it will produce fuel savings. He talks about winners and losers, but this measure also allows us to analyse take-offs and landings and varying routes, so we can mitigate impacts on communities. That is key.

The skillset is an essential element of that. Until now, the skills have been dissipated throughout the country. This measure puts the skillset into one place in the UKADS. That means we can concentrate on the most congested skies in the south-east, but it does not stop us doing what we need to do in the Scottish, northern and south-west airspaces. There will be funding to make sure that those other regions benefit, including smaller airports, which the hon. Member asked about. I will also commit to full transparency as we go through the process and get it over the wire to modernise airspace, so that the British aviation set-up has a confident future.

[Mr Paul Kohler (Wimbledon) (LD)]

rose—

[The Chair]

Does the hon. Gentleman wish to contribute? He did not indicate that he did when I looked at him meaningfully earlier, but he is just in time if so. I call Paul Kohler.

[Mr Kohler]

It is a pleasure to serve under your chairship, Sir Jeremy. We welcome steps to better co-ordinate the fractured and complex system of managing airspace. It is important to bring it into the 21st century by delivering flight paths that cut emissions and ensure that journeys can be quicker, quieter and cleaner. The creation of a single guiding mind to co-ordinate and sponsor future airspace changes is a positive step and something that my party warmly welcomes.

We recognise that without modernisation, not only will there be unnecessary capacity constraints, but outdated flight paths will constrict innovation and stand in the way of future advances, including essential low and zero-carbon developments in the sector. It is vital, however, that the new organisation works closely with the communities affected by noise and air pollution—as has been said, there will be losers as well as winners—and that local communities feel that their voice is being heard when changes take place.

We understand that London will be the first area that the UKADS considers. Can the Minister clarify the timeline for the creation of the new service and when we can expect the work on the modernisation of London’s airspace to commence? Can he give any indication of how long the Department envisages it will take for the UKADS to publish and consult on its draft proposals? Finally, will the Minister set out what steps the Government are taking to ensure that UKADS works closely with the public, so that the communities affected by the changes are and feel properly consulted?

Bus Services (No. 2) Bill [ Lords ] (Fifth sitting)

Paul Kohler Excerpts

Committee stage
Tuesday 1st July 2025 Public Bill Committees

[Jerome Mayhew]

I am grateful for that intervention; I stand corrected, as I was talking about clause 27. I do not know where clause 23 came from—my subconscious.

Subsection (2) clarifies that regulations can address the powers of an inspector outside of their authority’s area. Subsections (3) and (4) clarify the definition of an inspector. That is all fine.

Clause 28 is the largest clause in the Bill, so although it is not particularly contentious—we are substantially supportive of it—I would not be taking my duty seriously if I totally skipped over it. I will therefore pick and mix and hope that people bear with me while I take a little time to consider how it deals with local transport authority byelaws. It amends the Transport Act 2000, sets out the power of LTAs to make byelaws, and lists the various areas that can be covered.

Proposed new section 144A(1) and (2) of the 2000 Act is relevant to Liberal Democrat amendment 67. The byelaws set out in proposed new subsection (1) relate to travel on services, the maintenance of order and the conduct of persons while using services. Those are the areas of interest about which organisations will have the authority to create byelaws.

Proposed new subsection (2) goes into more detail and states that the byelaws relate to issues including tickets, the evasion of payment of fares, interference with or obstruction of local services, and the prohibition of vaping, smoking and nuisance on local services. I highlight that list, because Liberal Democrat amendment 67 would add “sustained anti-social auditory disturbance” to it.

The two subsections are dealt with differently: proposed new subsection (1) is an exhaustive list setting out the scope for byelaws, but proposed new subsection (2) is a non-exhaustive list of provisions that may be considered. Therefore, proposed new subsection (1) does not allow the consideration of issues relating to noise disturbance and would need to be amended to include that. In my submission, however, proposed new subsection (2) would not need to be amended because it is a non-exhaustive list, so we could go on forever adding things that annoy us on public transport—I would quite like to settle down and consider that. Although I share the Liberal Democrats’ fury and annoyance at antisocial auditory disturbance, I do not think it is necessary to add it to the non-exhaustive list in proposed new subsection (2).

[Mr Paul Kohler (Wimbledon) (LD)]

I thank the hon. Gentleman for those comments on our amendment, but what is the point of including anything in proposed new subsection (2) then? Following his argument, nothing needs to be there.

[Jerome Mayhew]

As ever, I thank the hon. Gentleman for his intervention. I am not the Government; it is for them to defend their drafting. If he wants to help to change that, I will happily stand on the Government side and give him the answer he is looking for. The essence of any non-exhaustive list is to give examples. It would not be wrong to give another example, but it is up to the Government whether it is necessary to amend the clause and whether they are prepared to add it to the list. As a matter of law, however, that is the difference between an exhaustive and a non-exhaustive list.

Proposed new section 144B sets out the procedures on byelaws. The Minister spoke about them briefly, and the measure is a reasonable approach to the problem that the Government seek to solve. I will just go back, however, and highlight that the byelaws allow for level 3 fines for these offences. Hon. Members will know that, under the current guidelines, a level 3 fine is £1,000, so the byelaws will allow local transport authorities and Transport for London to impose not inconsiderable fines.

Given that these are substantial powers that can address quite wide-ranging behaviours, and that transport authorities can impose fines of up to £1,000, we collectively need to think about the guidance from the Secretary of State that will accompany this legislation. It is important to get that right, and I invite the Minister to elaborate on the guidance’s likely approach to enforcement. A kind of draconian, one-strike-and-you’re-out enforcement would be deeply unpopular, and it would bring in a whole load of people who were just running for the bus. There are good actors and bad actors: people get caught up in behaviours for all sorts of reasons, and we need sensible guidance about enforcement.

Clause 29, on TfL byelaws, is a similar clause that simply seeks to apply a similar approach to TfL. I will not go through it, but the points that I made about clause 28 apply.

[Mr Kohler]

Clause 28 introduces powers for local authorities to make byelaws for buses. That is welcome, and I agree that the behaviour that the clause already lists should be prohibited. There is, however, a clear omission. With passengers already paying extortionate fares to be packed in like sardines on buses, we should at least ensure that they do not face the added indignity of someone’s blaring TikTok feed. That is why our amendment 67 seeks to add the words

“including sustained anti-social auditory disturbance.”

The amendment would explicitly allow transport authorities to bring in byelaws that ban persistent antisocial noise, such as music or videos played out loud on personal devices. It is a sensible, proportionate response to a problem that has been left unchecked for far too long. Let us be clear: we are not talking about a small inconvenience. The scale of the problem is significant.

Recent polling has found that almost two in five people say that they have experienced others playing music out loud often or sometimes, while only a quarter report experiencing it rarely. Furthermore, a majority of respondents say that they would not feel comfortable asking someone to turn down their music on public transport. Women feel especially unable to challenge such antisocial behaviour; almost two thirds say that they would not feel comfortable doing so.

Furthermore, playing music and other content loudly on public transport is done not only unthinkingly but, on many occasions, in a deliberately intimidatory manner designed to provoke and unsettle others going about their lawful business. The amendment is a sensible step that would ensure local authorities have the tools that they need to combat a growing menace.

Not everyone agrees. I was deeply disappointed when the Leader of the Opposition, the right hon. Member for North West Essex (Mrs Badenoch), who also happens to be a valued constituent of mine, opposed the measure, dismissing fines for such disruptive and selfish behaviour as “silly”, despite the frustration and discontent that it causes for so many. I find her attitude extraordinary; I would be very surprised if she had not, like so many of my other constituents, experienced the phenomenon on buses across Wimbledon—assuming, of course, that she uses buses.

The right hon. Lady is not alone, however, as I will explore in more detail in a moment. Some have accused me of abandoning my liberal sensibilities in seeking to address the issue. All I would say to such critics is that liberalism is as much about responsibilities as about rights. I do not begin to see how my right to play content loudly on my phone or some other device obviates my responsibility not to cause unnecessary disturbance to others. Whether people are heading to work, taking their kids to school or simply trying to enjoy a moment of peace, they deserve to feel safe and respected on public transport.

Time and again I hear people say that they feel too intimidated to speak up when someone is blasting music or videos from a phone or speaker. The Liberal Democrats want to take tough action on headphone dodgers to ensure that every passenger feels safe and respected, and can travel in peace. We urge all parties to support the amendment and finally bring an end to commutes filled with unnecessary noise, disturbance and frustration.

In what has become a running motif of the Committee, the Minister has said that the amendment, like so many that have perished before it, is unnecessary on two broad grounds. First, he argues that the antisocial playing of music and other content already comes within the term “nuisance” under the Government’s proposed new section of the 2000 Act.

That is clearly open to challenge, however: I have already quoted the reaction of the Leader of the Opposition, who appears not to regard such thoughtless or intimidatory disturbance as a nuisance. Perhaps more significantly, in what has become an increasingly rare experience for the Conservative leader, she appears to still be speaking for most of her parliamentary party—although not, it seems, for the hon. Member for Broadland and Fakenham on this issue at least—given the jeers and heckling directed at me from the Opposition Benches when I raised headphone dodgers at Prime Minister’s questions recently. I humbly suggest to the Minister that it is worth noting the Prime Minister’s answer to my question. Pointing at the jeering Conservative Benches, he said:

“We take this seriously; the Conservatives laugh about it.”—[Official Report, 30 April 2025; Vol. 766, c. 324.]

Here is the Minister’s chance to prove that the PM is a man of his word by accepting our amendment and showing that the Government do take sustained antisocial auditory disturbance seriously in the face of those who would—bizarrely—argue that it is not a nuisance.

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[Jerome Mayhew]

I am grateful for that intervention; my hon. Friend is right. I do not want to demonise cyclists. Cyclists are not out there actively trying to mow down pedestrians seeking to cross at floating bus stops; they are doing their best in the vast majority of cases, but we have created, with the best of intentions, a conflict between foot passengers and cyclists. I would submit that we have the balance of convenience wrong, and we should be brave and bold enough to admit where we have made a mistake and should take effective steps to improve the situation.

Floating bus stops are inherently inaccessible and dangerous. They compromise the safety of people with visual impairments, who potentially cannot see or hear cyclists. They confuse wheelchair users and those with mobility impairments, who are put off using public transport. New clause 12 would strengthen democratic oversight by requiring proposals to be laid before both Houses of Parliament.

New clause 13 was also tabled by the hon. Member for Battersea; in her absence I shall set out what it does. The new clause would require the Secretary of State to commission an independent review of the safety and accessibility of floating bus stops and shared use bus boarders to be undertaken in collaboration with groups representing disabled people in England. I made clear in my earlier remarks the dangers caused by floating bus stops to the safety of disabled, partially sighted, blind and elderly people, and I support the new clause, as it would add further checks and balances to clause 31 and strengthen the Government’s stance on the issue.

The requirement on the Secretary of State to commission an independent safety and accessibility review and to undertake that review in collaboration with groups representing disabled people would not only help to ensure that the Government’s response to floating bus stops was evidence-based and centred specifically on safety concerns and the lived experience of people trying to use such bus stops, but accommodate consulting the wider disabled community, not just the Disabled Persons Transport Advisory Committee.

New clause 40 was tabled by the hon. Member for Wimbledon and he will be delighted to hear that he has my support. I will leave it to him to rehearse all the details of the drafting, if he wishes to; suffice it to say that that the new clause would require the Secretary of State to conduct a review of all existing floating bus stops—not future ones, but the ones that are already there—and their level of safety, and to state the Government’s plans to implement necessary retrofits to ensure that they are fully accessible and safe. I welcome any amendments that add checks and balances to the Bill to help to ensure the safety of passengers and nullify the safety issues with floating bus stops. My new clause 47 accommodates the aims of new clause 40(2), but goes one step further by prohibiting any new floating bus stops after the day on which the Bill becomes an Act. I fully support the Liberal Democrat new clause.

Members will be delighted to hear that my new clause 47 is the last clause in this group, so I will sit down in a moment. Were the new clause to be adopted, it would do three important things. Subsection (1) would establish an immediate prohibition on the construction of new floating bus stops by local authorities—so we would stop digging. That is the first thing: we would stop making new floating bus stops. Subsection (2) would compel the Secretary of State to review existing infra-structure to assess compliance with accessibility and inclusive design principles—that is, to see what we have and to analyse it to see whether it is accessible. Subsection (3) would require a clear and public statement to Parliament setting out what changes would be made, what steps the Secretary of State would take to ensure that they were delivered, and what guidance would be issued to local authorities to support that work.

The new clause is designed to be a pragmatic response to persistent and credible concerns raised by the disabled community, charities representing blind people and elderly bus passengers who have to struggle with the safety challenges that persist with these bus stop designs.

[Mr Kohler]

Is there not a contradiction? Subsection (2) seems to suggest that there are ways of designing out the problem, whereas subsection (1) bans all new floating bus stops. If subsection (1) were offering a moratorium until the design issues had been addressed, we could support it, but subsections (1) and (2) do not sit well with each other.

[Jerome Mayhew]

Given my criticisms of the hon. Gentleman’s drafting of previous amendments, I am sure he is delighted to raise this drafting concern. I respectfully disagree with him, as new clause 47 takes a sequential approach to stop the problem getting worse, then to identify the cause of the problem, and then to require the Government to set out how to fix it. I will leave it to the hon. Gentleman and his conscience to decide whether he feels able to support the new clause, should it come to a Division.

New clause 47 strikes the right balance between a pragmatic approach towards existing floating bus stops, a requirement for the Secretary of State to review all floating bus stops to identify the changes that are needed, and a firm but necessary stance against the construction of any further floating bus stops. The principle of inclusive design must be a main priority when we think about bus stops, and my new clause would achieve that. I urge the Committee to think carefully about it, and to see if they can find it in their hearts to support it.

[Mr Kohler]

There is a lot to cover, but I will not take as long as the shadow Minister. Amendments 40 and 42 are sensible, as making guidance mandatory rather than permissible would keep the right balance. This is clearly an issue for many people, and having clear Government guidance on the accessibility of stopping places would be a positive step. As the shadow Minister said, surely the Minister will want to produce guidance, so making it mandatory would not be an onerous obligation.

The hon. Member for Brighton Pavilion is not here to press amendment 29, but my party supports it and will press it. This positive amendment would ensure that there is guidance on toilet facilities—which are clearly an issue, particularly for people with a disability or medical condition—and on travel information in relation to floating bus stops.

Liberal Democrat amendment 65 would mean that accessibility guidance includes guidance relating to the provision of information at a stopping place, and amendment 60 would ensure that authorities listed in subsection (6) take reasonable steps to ensure that the disability guidance issued by the Secretary of State is implemented. Although the Bill makes provision for the publication of new statutory guidance to improve the accessibility of bus stops, service information provision is not mentioned. Up-to-date route and timetable information, as well as real-time arrival boards, are crucial for all passengers, especially those without access to digital tools. It also improves passengers’ feeling of control and security. In Wimbledon, many signs have been removed and not replaced, which is a real issue for older people and the digitally excluded. For those who do not have access to an iPhone, this sort of information is critical.

Amendment 65 would address that need by ensuring that legislation covers both infrastructure and information provision, including up-to-date route maps, timetables and real-time arrival information at bus stops, ensuring accessibility and safety for all users. It would help to prevent people becoming disoriented or isolated, ensuring that disability does not stand in the way of navigating a local bus route.

Amendment 60 would ensure that disability provisions are properly actioned. “Reasonable steps” is a legal term of art, and the shadow Minister’s criticism does not hold because the costs would be part of deciding whether it is reasonable. Having regard to guidance on disability could see many transport authorities fail to implement anything substantive, but this amendment would require them to take reasonable steps to deliver the guidance—that is, they must be reasonable steps.

Accessibility is not a nice-to-have; equal access for all passengers is essential. If disabled people are unable to travel to their doctor’s appointments, to see their friends or to access work because of poor accessibility, the impact on their lives is intolerable. For accessibility, legislation needs to talk in terms of duties and steps that must be implemented rather than just a consideration that can be done away with. However, as I said, the amendment emphasises reasonable steps, not unreasonable ones.

--- Later in debate ---

[Mr Kohler]

I completely agree with the hon. Member. With the welcome increase in active travel and the number of cyclists, we need to address the conflicts that arise on the road. If one goes to the continent, it is part of their DNA—cyclists, motorists and pedestrians understand their relationship—but the same is not true in this country.

The new clause proposes a review of existing floating bus stops within six months and would require the Secretary of State to come up with a plan. This is a proportionate, evidence-led and pragmatic path forward that puts safety, accessibility and inclusion at its heart. I have been lobbied by eloquent advocates from Guide Dogs and the RNIB, who are concerned that the review of the existing provision that we are proposing will be biased in favour of floating bus stops, so I make it absolutely clear that we would expect the Secretary of State to include representatives of those organisations along with other charities in that review process.

Moving on to new clause 47, I am aware that some think there is no solution to this problem apart from banning floating bus stops. However, from my conversations with visually impaired colleagues, both in Parliament and beyond, I believe that compromise can be achieved. I counsel the Committee to reach a compromise that does not pit the blind and disabled against cyclists.

Ordered, That the debate be now adjourned.—(Kate Dearden.)

Bus Services (No. 2) Bill [ Lords ] (Fourth sitting)

Paul Kohler Excerpts

Committee stage
Tuesday 1st July 2025 Public Bill Committees

[Amanda Hack (North West Leicestershire) (Lab)]

It is a pleasure to serve under your chairship, Dame Siobhain. Before I came to this place, I sat on the highways and transport scrutiny committee at Leicestershire county council, so I have spent a lot of my professional life talking about buses. As is not out of the ordinary for someone living in a rural or semi-rural constituency, however, I have also spent a lot of my personal life talking about them, as cuts and broader threats to our services are often the subject of conversation around the dinner table.

We all have residents such as those my hon. Friend the Member for Middlesbrough South and East Cleveland spoke about in our previous sitting. For example, my constituent, Jacky, fought hard to reinstate the bus service in Whitwick in my constituency, and won, ensuring that people can get to the local doctor and pharmacy. That is a socially critical service. A few years ago, the service between Coalville in my constituency and Hinckley in the neighbouring constituency was withdrawn at short notice in the middle of an academic term. North west Leicestershire and Hinckley both have further education colleges, and that essential link between the two was withdrawn in the middle of people’s courses. If the local authority had responded to campaigners then, it would have realised that the bus route between those two urban parts of Leicestershire was a socially necessary service.

In big cities, cutting one service leaves a dent, but in rural areas such as mine, it leaves a crater—and craters have been appearing all over my constituency. Bus services were cut by 62% under the previous Government. What bus providers and councils see as cutting costs, we see as cutting lifelines to education, jobs and healthcare—cutting connections with our communities. Members can imagine my constituents’ frustration when they heard a few weeks ago that notice had been served on a route between Ashby and Loughborough. The local authority has found an alternative to protect the service, but the timings are such that students now have to catch their bus even earlier to get to college.

Bus services are not just about transport; they are about opportunity, inclusion and dignity. When a young person in Measham cannot reach their college in Loughborough, or an elderly resident of Ibstock cannot get to their medical appointment, that is not an inconvenience but an erosion of their independence. We cannot afford to keep asking our communities to do more with less. That is why I welcome the Bill’s ambition. Finally, we have committed the resources that are needed to protect socially necessary services in my community and many others.

[Mr Paul Kohler (Wimbledon) (LD)]

Clause 14 is so important, because it is about socially necessary routes—those that are critical to the community. It explicitly includes employment and, as the Minister conceded last week, also catches things such as hospital appointments, GP appointments and education.

Throughout the Committee stage, the Minister has hidden behind localism. Now, I am a Liberal, so subsidiarity is part of my DNA; I believe in devolving power, but national Government must not wash their hands of their responsibilities. It is reminiscent of the old Conservative trick from the Thatcher era, of Government distancing themselves from their responsibilities. Funding is crucial, but as we heard in the debate last week on amendment 54, the Minister says it is not for Government to decide what to do with it. They have given a bit of money, and now it will be up to local authorities.

The Minister even quoted other Tory lines about how there is no “magic money tree”, and I agree—there is not. So we need growth. We do not get growth by wishing on a star, taxing jobs by increasing employer’s national insurance contributions, or tying ourselves in knots with red lines over Europe rather than meaningfully re-engaging with the EU customs union. That is the way to grow the economy; that is the way we pay for these things. The Government cannot talk about growth, do nothing about it, and say to local authorities, “We have given you almost a billion pounds, and you can now go and sort out buses,” because local authorities do not have the finances.

I am straying from the Bill. I have thus far referenced the omissions from the Bill, such as money. By inserting subsections (5) and (6), the House of Lords sought to focus attention on the Government’s commissions—namely, the end of the £2 fare cap, and the disastrous effect of hiking employer’s NI costs on the provision of special educational needs and disabilities bus transport. The Government’s decision to table an amendment removing those subsections is plainly a mistake, one that threatens to undo the constructive and necessary work undertaken in the Lords. The provisions were added to ensure that Ministers are held accountable for the consequences of their decisions—specifically, the rise in national insurance contributions and the short-sighted decision to increase the cap on bus fares.

As the National Audit Office made clear in its report published last Friday, bus services are lifelines, not luxuries. They are essential for the young, for older people, for households without a car, and for those on the lowest incomes. The Government’s decision to scrap the £2 fare cap is not just wrong, but an outrage. It is a direct hit to the most vulnerable. The NAO report revealed that the lowest-income households—those in the bottom 20%—take more bus journeys on average than any other income group, at 42 journeys per household per year. Those are essential journeys to work, school, the shops or the doctor. Removing the fare cap would mean those people—the poorest in our society—paying more to do the basics of daily life. Subsection (5) rightly sought to introduce a review to assess the impact of increasing the fare cap on people’s ability to access socially necessary routes. Scrapping the review removes transparency, accountability and the Government’s responsibility to understand how their decisions impact real lives.

The same principle applies to subsection (6), which calls for an assessment of the impact of changes to national insurance on SEND transport. Transport for children and young people with special educational needs and disabilities is not a side issue; it is central to an inclusive, accessible education system. Without that form of transport, many children cannot get to school. Increasing employer’s NI contributions risks undermining the viability of the services, as the hon. Member for Broadland and Fakenham made clear last week. The operators who run them are under increasing financial pressure. Without proper assessment and oversight, we risk sleepwalking into a situation where routes are cut, service levels fall, and SEND pupils are left without reliable transport. That would be an unforgivable failure of not just policy, but basic fairness.

Including a requirement to review the impact does not bind the Government’s hands; it simply asks them to look at the evidence, consider the consequences of their actions, and take responsible steps to mitigate harm where needed. We must protect these services for their users and uphold the principle that no one should be left behind due to financial pressures beyond their control. I urge the Government to reconsider and not shy away from scrutiny. They should own their decisions and be prepared to measure their impact. That is what responsible government demands.

[Josh Newbury (Cannock Chase) (Lab)]

It is a pleasure to make my first speech in Committee with you in the Chair, Dame Siobhain, particularly on a matter as important to the residents of towns and villages in Cannock Chase, which I represent, as socially necessary local services.

When I first read the Bill, clause 14 was one of the measures that I was most delighted to see, along with the extension of the option of franchising to non-mayoral areas, such as mine in Staffordshire, and the scrapping of the ideological ban on council-owned bus companies, which could be an important part of the picture when restoring routes in areas like mine. I apologise to the Committee for not being able to attend its first sitting, when rural bus services were discussed.

The reality for many rural communities including some of my villages, which face reductions in services or being completely cut off, is that they mourn the loss of bus routes because they are now unable to take the bus to access vital facilities and services. Residents of the village of Slitting Mill, just outside Rugeley, have no bus service at all. When I go door-knocking there, I always hear from residents about the opportunities and freedoms that they have lost as a result. One resident told me, almost wistfully, as if she were speaking of a bygone age, of when she used to be able to catch a direct bus from her little village to the centre of Wolverhampton, where she worked. She told me that she does not blame young people for moving out of the village because of that lack of connectivity, or for not returning if they want to start a family. If someone in Slitting Mill does not have a car, their prospects for employment and training are very limited.

In my home village of Norton Canes, residents in the most deprived part of our community, on and around the Norton East Road, have been cut off for many years because the No. 3 bus skirts around the bottom of the road, and the No. 60 around the top. Although the walk of 10-ish minutes is no bother for residents without mobility issues, many of the residents who made best use of the services that went down Norton East Road are older. Many have told me that they do not even bother to catch the bus now. That is just one example of how shrinking services are exacerbating the decline of ridership.

Many residents use the bus to get to their GP appointments, and to scans, tests and secondary care services at Cannock Chase hospital. I am sure that, like me, other hon. Members have heard from constituents who often have to spend huge chunks of their income on taxis—accessible taxis are like hen’s teeth in my neck of the woods—or have to rely on relatives to drive them. Such relatives are hard to come by during working hours, but that is when most health services are open. Had clause 14 been in place when the withdrawal of services from Norton East Road was proposed, we would have had some back-up in opposing that on the grounds of its impact.

I am sure that we have all heard accounts of children and young people not being able to get to school or enjoy social time with their friends because of a lack of bus services, especially in rural and suburban areas. That restricts the horizons of the next generation. Such matters should be, but often are not, taken into account when proposals are made or services are slated for withdrawal.

Those three examples from my constituency show what the Bill means to communities such as mine, which have been let down by the broken bus system for far too long. Buses should work for people and communities, first and foremost. Clause 14 puts that aspiration at the heart of the Bill; I hope it will stand part.

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[Jerome Mayhew]

Committee members will be pleased to hear that I will whip through the clauses quite quickly. Clause 15 amends the Transport Act 2000 to widen the measures that can be taken by a local transport authority under an enhanced partnership scheme so that they can relate to any local services in the area concerned. That is very sensible; we need not trouble the Committee any longer with consideration of that clause.

Clause 16, which deals with the passenger benefit requirement, replaces section 138C(9) of the 2000 Act. It sets out requirements in respect of local services to allow an enhanced partnership scheme to require bus operators to provide benefits to bus passengers in return for public expenditure on facilities or measures that will reduce operating costs. It is a simple and practical balancing act between the commercial operations that pay for themselves and the socially necessary additions that a local transport authority may wish to negotiate as part of the enhanced partnership. It is about the quid pro quo of how those can be funded other than by direct subsidy.

Clause 16(9)(a) provides that local transport authorities may include requirements that relate to operators establishing and operating arrangements that facilitate an EP scheme, and subsection (9)(b) may require bus operators to provide benefits to bus passengers if they benefit from action taken by the LTA or other public authorities, including the Secretary of State. Again, this is a sensible adoption of a quid pro quo process rather than having route extension with direct subsidy. For the Conservatives, the provisions seem to sensibly widen the options for trade-offs, and we are supportive of them.

Clause 17 inserts into the 2000 Act proposed new section 138(KA), so that where an EP scheme can be varied in accordance with the scheme, a variation can be made under section 138(K) only when the Secretary of State is satisfied of two things: first, that operators have behaved unreasonably or obstructively, and secondly, that the variation or revocation will benefit the users of local services. Again, this is a sensible approach for the Secretary of State to take and we will not object to clause 17.

The Liberal Democrats’ new clause 37 would deal with the variation of EP schemes to improve the integration of public transport. It would mean that a variation to an EP could take place only if it had the effect of improving integration across different modes of transport. Although I understand and applaud the rationale behind the drafting of the new clause, one has to be careful of the unintended consequences, because it would prohibit any change to an EP that did not also improve integration across different modes of transport. Many variations to an enhanced partnership might have multiple benefits for passengers, but might not have the benefit of improving integration across different modes of transport. Under a strict reading of the new clause, such improvements would be prohibited. I know that is not the Liberal Democrats’ intention, but as the new clause is worded that would unfortunately be the effect.

I will not make any comments on new clause 50, other than that, unusually, I support the words of the Minister in that the trade unions already come under the wording of the Bill.

[Mr Kohler]

New clause 37 is sensible and constructive. It would ensure that when enhanced partnership schemes are amended, improved integration across modes of public transport is explicitly recognised as a legitimate and desirable reason for doing so.

We have seen time and again, both here in the UK and internationally, that when public transport is properly integrated, it works. It becomes more convenient, reliable and attractive to passengers. People choose to use it and when that happens, buses flourish. Whether it is better co-ordination between bus and rail timetables, joined-up ticketing or clear and consistent information across modes, the benefits of integration are obvious. Without a clear statutory basis for prioritising integration, too often such opportunities are missed.

--- Later in debate ---

[Rebecca Smith (South West Devon) (Con)]

It is great to serve under your chairmanship this morning, Dame Siobhain. I want to follow up on what my hon. Friend the Member for Broadland and Fakenham said and ask a few additional questions, particularly about the provision in clause 18 for persons with disabilities.

I obviously welcome the inclusion of this clause in the Bill—we clearly want to ensure that public transport is as accessible for all as possible—but I am slightly concerned that, in a way, it provides false hope. Subsection (2) states:

“An enhanced partnership scheme may specify”,

so it is a “may”, rather than a “must”. It is nice to have that consultation, but there is an opportunity for the local authority or whoever is providing the bus service not to do it. The clause allows for a consultation, but there are no guarantees that what disabled people want will happen.

I am also slightly concerned about the taxi guarantee scheme. I do not know whether hon. Members have experienced the same thing as me, but my constituency of South West Devon is an interesting mix of urban and rural. It might be thought that large chunks of Plymouth are technically easily accessible, but the Access Plymouth minibus system does not even work across the city, let alone go into the rural parts of the constituency. Out in the South Hams and West Devon, which is a different local authority, the bus services are typical rural bus services: they are not very reliable or frequent.

It is also worth saying that taxis are not reliable either. Just this weekend, a local taxi service that runs out of the village put a post on social media saying, “We’re fully booked this evening.” Even able-bodied people, let alone people with disabilities who are trying to benefit from a taxi guarantee scheme, need to book in advance, so I question the feasibility of delivering on this clause.

We are not only saying that bus services will be reliable for persons with disability; we are offering them a taxi guarantee scheme. Yet we do not know—I assume the Minister will be able to explain this—what assessment has been made of the wider public transport picture or whether the taxis exist to provide the scheme, particularly in our rural communities. I know the Bill seeks to address those places. Ultimately, we need to ensure that we manage the expectations of those we are trying to help with the Bill.

I ask the Minister, what consultation has been held on, and what thought has been given to, the provision of rural services for people with disabilities? The taxi guarantee scheme is a great idea, but is it deliverable? What analysis has been made of that? Secondly, what might stop a local authority from delivering on this, and what assessment has been made of potential obstacles? Apart from the supply of buses and taxis, are there other reasons why a local transport authority might not be able to deliver this?

If it is that important to ensure that persons with disability can access public transport, which is something that I think we all agree we want, then the obvious question is: why does the legislation not say that an enhanced partnership scheme “must” do it? Why does the Bill say just that it “may”? It seems that there is a conflicting ambition here. Perhaps I have answered my own question in saying that there might not be the supply, but if we want to ensure a better world for persons with disability, I am intrigued as to why it does not say that a scheme must do this.

[Mr Kohler]

The clause, added during scrutiny in the Lords, is a welcome and valuable improvement to the Bill, but we would like to know what consultation was held with disabled groups before it was drafted. Although the changes it makes might seem modest on paper, they have the potential to make a significant difference in improving accessibility across our bus network.

Subsection (2) allows enhanced partnership schemes to specify requirements to ensure that disabled people can travel independently, safely, and in reasonable comfort on local bus services. The inclusion to allow the specification of a taxi guarantee scheme is also welcome. Although we share some of the concerns of the hon. Member for South West Devon, such a scheme may prove to be vital in ensuring that disabled and other vulnerable users feel comfortable and confident in using the bus. Subsection (3) strengthens the consultation process and ensures that disabled users or organisations representing them are consulted before any EP scheme is made. That is not just good practice; it is essential if we are to build a transport system that works for everyone.

Subsection (4) mirrors that requirement when enhanced partnership schemes are varied, and guarantees that the accessibility is not forgotten as schemes evolve. Authorities must once again consider whether changes enable disabled people to travel independently, safely, and in comfort. These are considered but welcome changes. Accessibility cannot be an afterthought; it must be embedded from the outset and considered at every stage of decision making. These welcome measures help to support that.

[Simon Lightwood]

I thank hon. Members for their thoughts on the clause. I remind the Committee that the clause was inserted into the Bill because the Government listened intently to concerns in the Lords. The clause will help authorities better reflect the needs of disabled passengers in the design of enhanced partnership schemes and plans. It will enable the specification of requirements of disabled people to travel independently, safely and in reasonable comfort. That extends to when a local transport authority is varying an enhanced partnership scheme. It will help local transport authorities to understand better the impacts on disabled passengers, and fits into how the Government are reforming transport to make it more inclusive, placing the passenger at the heart of everything we do.

The Government are determined to ensure that, as far as possible, local transport authorities take proper account of the needs of disabled people in using local bus services. The clause will support them in that. I have had many meetings with various groups, including disability groups, and I engage widely with the Disabled Persons Transport Advisory Committee—DPTAC—to help and guide us on the Bill. As I said, the clause was a reaction, having listened to concerns in the Lords.

Question put and agreed to.

Clause 18 accordingly ordered to stand part of the Bill.

Clause 19

Objections by operators

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

[Jerome Mayhew]

The Minister did a good job of précising the contents of the clause, so I will not repeat that—I know everybody will breathe a big sigh of relief. However, there are some issues; essentially, clause 21 requires a bus network accessibility plan to be created, but it does not then tell us what to do with it. My questions are around the theme of: “So what?” It is all very well to create a plan that just describes the status quo, but there is no requirement to improve. The current effect is to create cost and bureaucratic process with no outcome for passengers.

This is a real problem with both this legislation and legislation more widely: we think process is very important—because we are policy people—so we focus on all the hoops that organisations need to jump through. Too often, however, we forget to take the next step and understand the practical impact of the process on our constituents, in particular those who use buses. There appears to be no positive benefit from the clause as drafted, other than having another document collecting dust on a shelf somewhere.

What is the point of the requirement? It identifies need and describes what the LTA is planning to do about it, but that is it. It feels a bit like virtue signalling without funding, since improvements are expensive, particularly provisions for those with additional needs and disabilities, and do not add significantly to the fare box. What is the practical application of the clause? It applies a significant additional burden on local transport authorities, which have to jump through the hoops that we are creating, but what is the benefit?

New clause 23 in the name of the Liberal Democrats is a different version of the same thing, but I look forward to the explanation and advocacy of it by the hon. Member for Wimbledon. The only difference is that the plan would be annual rather than triennial, which would triple the amount of bureaucracy and cost associated with the provision. The new clause would include proposals to improve bus route accessibility but, again, with no requirement actually to change anything. I know that is not the intention of the hon. Member, but both the clause and the new clause are entirely useless without funding attached. Since no reference to such funding appears anywhere in the Bill, that does beg the question, what is the point of the clause and the new clause?

[Mr Kohler]

In answer to the hon. Member for Broadland and Fakenham, our new clause 23 addresses the weaknesses in the existing clause 21. According to research by the National Centre for Accessible Transport, 90% of disabled bus users report facing barriers to using the bus network. Those include space constraints, poorly designed bus stops, the lack of step-free access when boarding or alighting, and the continuing absence of induction loops. Buses are not a luxury for many disabled people; they are a vital connection to work, services, friends and family. Putting accessibility front and centre is not optional; it is essential.

The clause is therefore a step in the right direction. It rightly requires authorities to consider how to make bus services more accessible. However, if we are serious about delivering meaningful progress, we must go further. That is why we have tabled new clause 23, to build on the work started in clause 21 by introducing a requirement for annual reporting on accessibility progress.

The existing clause requires the accessibility plan to be reviewed only every three years. We believe that is too long; three years is a long time in which to do nothing. I draw Members’ attention to subsection (4) of our new clause 23, which lists practical things that the report would have to report on to draw attention to the public, the Government and voters exactly where there are shortfalls in, problems with and obstacles to addressing the need.

We need to go further than simply having the requirement. Under the Conservatives, the Access for All programme was left to wither and die on the vine. Unless we actually do something more practical, as we are suggesting, that is what will happen again. I agree that none, or not much, of the Bill will work without adequate funding—that is a given—but we have already made that point, and the new clause would give the oxygen of publicity to what is happening. We think that is important.

We do not think that new clause 23 would impose a significant new burden. It would simply require local transport authorities to produce a short annual update, setting out how they are progressing against the goals in their accessibility plan, to allow for regular scrutiny, course correction where needed and, above all, accountability. If we want a bus system that works for everyone, we must ensure that local authorities do not just create plans, but deliver on them, transparently and consistently. For that reason, we support the clause standing part of the Bill, and we urge the Government to adopt new clause 23.

--- Later in debate ---

Grants

[Mr Kohler]

I beg to move amendment 56, in clause 23, page 18, line 42, at end insert—

“154B Consideration of operator size in grant allocation

(1) When exercising powers under section 154A, a local transport authority in England may have regard to the size of the operator when determining the amount of a grant and the conditions which may be attached to it.

(2) In particular, local transport authorities may—

(a) give priority to small operators for the purposes of ensuring the sustainability and diversity of local transport services,

(b) adopt measures to protect small operators from disproportionate financial burdens or competition, and

(c) take into account the financial and operational capacity of small operators to meet service demands.

(3) When determining what constitutes a small operator, a local transport authority may consider—

(a) the size of the operator’s fleet,

(b) the number of employees employed by the operator, and

(c) the operator’s annual turnover or other financial capacity.”

This amendment would enable local transport authorities to prioritise small transport operators when allocating grants.

[The Chair]

With this it will be convenient to discuss clause stand part.

[Mr Kohler]

We welcome the powers in clause 23, which enables local transport authorities to design and deliver grants directly to bus operators in their areas. It is a clear step in the right direction, placing real tools in the hands of local authorities, which know their communities best and are best placed to shape the services that their residents rely on.

Amendment 56 builds on that principle. It would ensure that, when designing grant schemes, local authorities must consider the size of transport operators. Too often, smaller bus companies, many of them deeply embedded in the communities they serve, struggle to compete on an uneven playing field, especially when it comes to accessing capital for improvements or expansion. Our amendment recognises the vital role that those smaller operators play.

By requiring authorities to take those smaller operators’ circumstances into account and, where appropriate, prioritise them in their grant making, we would help to protect local choice, preserve vital routes and foster healthy competition in the sector. In short, this is a modest but meaningful measure to ensure that smaller operators are not squeezed out, and that communities continue to benefit from diverse, responsive and locally rooted bus services. We therefore support amendment 56 and the clause standing part of the Bill.

[Simon Lightwood]

The Government recognise the importance of small and medium-sized enterprises in driving economic growth. The hon. Members for Wimbledon, for North Norfolk and for South Devon clearly recognise that, too, given the amendment that they have tabled. This Bill aims to support our economic growth mission by giving local transport authorities greater freedom to decide how best to support their local networks.

Amendment 56 is intended to ensure that local transport authorities that choose to use the new powers to design and pay grants to bus operators consider the needs of small operators when designing those grants. The amendment is not needed, however. Clause 23 would do nothing to restrict local transport authorities from choosing to provide greater support to local small bus operators when designing their own grants, provided that those grants comply with competition and subsidy rules. Local transport authorities are already well placed to understand the needs of their small operators, because most are already part of enhanced partnership arrangements with operators in their areas. It will be for local transport authorities to decide the best way to support their local bus networks as a whole.

Finally, local transport authorities, as public authorities disbursing funding, will need to be mindful of the fact that any grants that they design using the powers under the Bill must comply with any relevant legal requirements, such as subsidy controls that ensure they are not distorting the local or national market. I therefore ask that the hon. Member for Wimbledon withdraw the amendment.

[Mr Kohler]

We remain of the view that without the amendment, the proposals will not give small bus companies the benefits that we are seeking to achieve. We are not convinced that that can be done without the explicit mention of small bus companies, as provided by the amendment.

[The Chair]

Does the Member want to withdraw the amendment or press it to a vote?

[Mr Kohler]

I will press it to a vote.

Question put, That the amendment be made.

Oral Answers to Questions

Paul Kohler Excerpts

Thursday 26th June 2025 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Mr Paul Kohler (Wimbledon) (LD)]

My party and I were pleased when the Chancellor recently announced funding for Northern Powerhouse Rail to improve connectivity. However, we still do not know on what the money will be spent. Any plan to boost the northern powerhouse must surely include a new main line between Manchester and Liverpool—a vital link that would not only drive economic growth across the north-west but strengthen connections between two of our greatest cities. When will we finally see the detail behind the Chancellor’s announcement, and will she meet with me and my hon. Friends the Members for Cheadle (Mr Morrison) and for Hazel Grove (Lisa Smart) to discuss proposals for the better linking of Manchester and Liverpool?

[Heidi Alexander]

The mayors of Greater Manchester and Liverpool—Andy Burnham and Steve Rotheram—have made a strong case for improving rail connectivity between their two great cities. The hon. Member is right to say that this Government are committed to improving the country’s rail network. I hope to say more on schemes for the north in the weeks and months ahead. I assure all hon. Members that I will come back to the House swiftly when I have more information so that they can question me further.

--- Later in debate ---

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Mr Paul Kohler (Wimbledon) (LD)]

Worcester Park is a station that my hon. Friend the Member for Sutton and Cheam (Luke Taylor) and I know well as it is on the boundary of both our constituencies, and I confirm that my constituents face the same issues of overcrowding. SWR acquired 90 high-capacity Arterio trains to address this issue back in 2019, yet six years later only a handful have entered service. The UK taxpayer is currently spending over £5 million every month on leasing the Arterio fleet, and over £0.5 million additionally every month to store the unused trains. Will the Minister confirm how many Arterio trains are now in use, whether the issues delaying roll-out have now been addressed, and whether he thinks that spending millions of pounds every month on unused trains is a good use of taxpayers’ money?

[Simon Lightwood]

I am aware that another two of those trains are now in operation. The new managing director is aware that this is a challenge and we are already beginning to see progress.

Bus Services (No. 2) Bill [ Lords ] (Second sitting)

Paul Kohler Excerpts

Committee stage
Thursday 26th June 2025 Public Bill Committees

[Jerome Mayhew (Broadland and Fakenham) (Con)]

It is a pleasure to serve under you, Dr Allin-Khan.

Clause 5 deals with the minimum period before provision of services can be changed. It is not a difficult clause, but it is worth going into some of the subsections in a bit more detail. Subsection (1) omits section 123H(4) of the 2000 Act, which set out that a franchising scheme

“may not specify under subsection (2)(d) or (3)(c) a period of less than six months.”

That meant that at least six months had to expire between the authority making a local service contract and the provision of the local service under that contract.

Clause 5(2) sets out that the transition arrangements in subsection (3) apply where, before the clause comes into force, the franchising authority or authorities have published under section 123E(2) of the 2000 Act a consultation document relating to a scheme or variation of a scheme, but have not yet made the scheme or varied it. Clause 5(3) provides that when making or varying the franchising scheme pursuant to the consultation document, the franchising authority or authorities may specify a minimum period, under sections 123H(2)(d) or 123H(3)(c) of the 2000 Act, that is less than six months.

Although I understand that the Minister and his Department want to smooth out some of the hindrances and streamline the system, and in principle I am supportive of that, the question that begs to be asked is: is there no de minimis period? It may be considered that a six-month period is too long, but what about a one-week period? Is that too short? As drafted, the clause does not provide a de minimis period. What would be the impact on franchise operators if there were an instantaneous change? That is a significant issue that needs to be considered, because we are dealing with operators that are commercial beasts. They have infrastructure, and drivers and staff that have to accommodate changes to these schemes, and yet the Government’s proposed changes would in theory allow there to be no notice at all.

I would be grateful if the Minister could expand on the Department’s, or the Government’s, thinking on this matter. I accept that six months is itself an arbitrary time limit. Why is it not seven, or five? I accept the rationale, which is that we wish to streamline the provisions in order to make it easier for local transport authorities to undertake these changes and take advantage of some of the opportunities that the Bill provides, but it is important for it to be practical and not to have unintended consequences for bus operators and their commercial activities.

Clause 6 amends sections 123E(4)(a), 123N(2)(a), 123Q(5)(a) and 123R(5)(a) of the 2000 Act. Before I go any further, it is worth reflecting that the reason why the clause is so complicated in its nomenclature is that there have been multiple amendments to the Transport Act. Although I have not researched it, some of that presumably came about through the deliberations of this House when the legislation was drafted, but there have subsequently been multiple alterations.

It begs the question of our approach to legislation in this place when an Act is so often amended. It makes it very difficult, one imagines, for people and organisations—local transport authorities, in particular—to understand what their duties and legal responsibilities are. In many instances, these are not recommendations; they are mandatory requirements, with which failure to comply could lead to judicial review and the kind of lawfare that we as a society often rail against, because we feel that the Government—and by that, I also mean local transport authorities in this instance—cannot get anything done because they are being tripped up by incredibly complex legislation with poor drafting that requires multiple amendments. That is how we get to a “section 123Q(5)(a)”—but that was a slight aside.

Clause 6 further amends the Transport Act by adding to all those subsections the words

“which have one or more stopping places”

after the references to “local services”. In itself, it is a wholly good amendment, and I am not seeking to criticise it. It clarifies that the references to “local services” incorporate any service that has a stopping place in the relevant area, including cross-boundary services operating pursuant to a service permit. However, I wonder whether this clarification was necessary in practice. I would be interested to know whether there have been any instances of local transport authorities being misled by the current drafting—I would be surprised if there had been—or any legal challenge to the current definitions that highlighted a need to clarify an ambiguity. Subject to that clarification from the Minister, I accept that there is nothing wrong with the amendment made by the clause. It is a useful clarification of the Transport Act 2000, to avoid doubt in interpretation, if, in fact, such doubt has ever existed.

[Mr Paul Kohler (Wimbledon) (LD)]

It is a pleasure to serve under your chairship, Dr Allin-Khan. My party has little to say on this group. We are supportive of clauses 5 and 6, although the hon. Member for Broadland and Fakenham made a good point, and we would like to hear the Minister’s views on it.

[Simon Lightwood]

The hon. Member for Broadland and Fakenham spoke about the removal of minimum mobilisation periods. It is consistent with the aims of the Bill to empower local transport authorities to decide how best to design their bus services, and this will be an issue for franchising authorities to determine. A minimum mobilisation period does not need to be mandated by central Government. This is something that franchising authorities will need to consider, and it is in their interests to make sure that there is a smooth transition to a franchising scheme, if that is the pathway they wish to consider.

Franchising authorities will make their determinations about the duration of mobilisation periods based on numerous factors. The clause provides flexibility for mobilisation to occur in a period shorter than six months, where it is in the interests of stakeholders and passengers. As I have explained, the Government intend to update the franchising guidance following Royal Assent.

Question put and agreed to.

Clause 5 accordingly ordered to stand part of the Bill.

Clause 6 ordered to stand part of the Bill.

Clause 7

Criteria for granting service permits

--- Later in debate ---

Briefly, clause 9 provides for the sensible removal of the need for operators of the services described in proposed new subsection 123J(8) of the Transport Act 2000 to apply for a service permit to be able to operate in a franchise area. That includes temporary rail and tram replacement services. From my perspective, that is eminently sensible. If a short-term bus replacement service is being provided, because there has been a problem with rail or tram provision, it clearly makes sense that those should be exempt from registration under the terms of clause 9. I absolutely understand and support the clause, but I raise the question about the opacity of clause 8(4).

[Mr Kohler]

I will be more brief. [Hon. Members: “Hear, hear.”] I have two points to make. I suspect that many of the shadow Minister’s points could be drawn from Hansard 40 years ago when bus deregulation was introduced. The great flaw of bus deregulation was it allowed private providers to cherry-pick profitable routes, leaving local transport authorities no opportunity to cross-subsidise their loss-making routes. That prioritised not passengers, but private providers. I fear that all the amendments would achieve the same end; they would simply allow private providers to cherry-pick profitable routes—often built up by local transport authorities that put effort, time and public money into them—without any provision for the non-profitable routes.

I say to the shadow Minister that equating passengers with consumers oversimplifies the complex issue of rural connectivity, and ends up isolating rural communities. As he admitted, in many rural communities, market mechanisms will not work. These are simply unprofitable routes.

[Jerome Mayhew]

I fear that the hon. Member and I may agree more than he perhaps thinks. As I said, I accept that rural routes are unlikely to be profitable, but that does not mean they should not be provided. That is why I went on to talk about demand-sensitive transport, as well as to mention the suggestion from the hon. Member for North Norfolk about rural transport hubs. Those can be subsidised, either through an enhanced partnership or through a franchise process. I accept that they will not be part of a purely commercial result, but that is not what I was suggesting in the first place.

[Mr Kohler]

I heard the shadow Minister say that, and I understand it. However, there is a contradiction in his analysis. He admits that point, but constantly refers to consumers operating in profit-and-loss markets. He is making a very narrow equation, and I fear that allowing public providers in the way he wants would simply undermine the whole rationale behind what we—or the Government—are trying to do with the franchising process. It is too narrow and simply ends up completely undermining what we are trying to do.

[Luke Myer]

Is it not the case that these are, in fact, not private providers at all? Many are subsidised by other Governments around the world—we see this in our rail and bus networks. Other states are stepping in to make a profit where Conservative Governments have stepped back.

[Mr Kohler]

I fear that is true. I do not think they are subsidising—I think they are coming in and taking a profit, and I absolutely agree.

[Steff Aquarone (North Norfolk) (LD)]

It is a pleasure to serve under your chairship, Dr Allin-Khan.

To refer to the general comments made by the shadow Minister, I am totally up for supporting things that put passengers first and are aligned to that purpose. I was regretful that the Committee disagreed to clause 1, on the inclusion of the overall purpose of the Bill, in our previous sitting.

The shadow Minister gave a long and wide-ranging speech; I was disappointed that it did not extend to his own personal tactics for rope sabotage, given the provenance of his business background—but perhaps that is for a future hearing. I will leave the Minister to respond to the issues of the words “outweigh” and “persons”, because I feel that it is his Bill to defend, but I do not fear the potential to refuse to the same extent as the shadow Minister.

Let us get back to what we are substantially talking about here, which is the cross-border issue. From my perspective—my constituency and that of the shadow Minister share many geographic characteristics—the whole point is that, however it is looked at, bus transport, even in urban areas, does not make a profit. Franchising is a welcome model because it allows the state, which is funding the operations, to contract to the providers who are going to deliver the service most efficiently and effectively. I do not see room for the entrepreneurial business model and profiteering that the shadow Minister refers to.

Bus Services (No. 2) Bill [ Lords ] (Third sitting)

Paul Kohler Excerpts

Committee stage
Thursday 26th June 2025 Public Bill Committees

[The Chair]

As amendments 49 and 50 are almost identical to the previous amendments, my discretion is not to proceed to a vote.

Amendments made: 4, in clause 7, page 4, line 10, leave out “but” and insert “and”.

This amendment and Amendment 5 widen the category of services that are capable of being cross-boundary services.

Amendment 5, in clause 7, page 4, line 11, leave out

“begins or ends, or begins and ends,”

and insert

“has one or more stopping places”.—(Simon Lightwood.)

This amendment and Amendment 4 widen the category of services that are capable of being cross-boundary services.

Clause 7, as amended, ordered to stand part of the Bill.

Clauses 8 and 9 ordered to stand part of the Bill.

Clause 10

Report on assessment of proposed scheme

[Mr Paul Kohler (Wimbledon) (LD)]

I beg to move amendment 57, in clause 10, page 6, line 6, at end insert—

“(A1) Section 123B of the Transport Act 2000 (assessment of proposed scheme) is amended in accordance with subsections (A2) to (A4).

(A2) In subsection (2)(a) omit ‘and’;

(A3) In subsection (2)(b), after ‘action’ insert—

‘, and

(c) assess the adequacy of central government funding to support the provision of bus services under the scheme.

(2A) The assessment under subsection (2)(c) must include—

(a) an evaluation of whether available funding is sufficient to meet the projected costs of the franchising scheme, and

(b) an analysis of the funding required to maintain or improve service levels across all affected communities.’

(A4) After subsection (6) insert—

‘(6A) An assessment under this section must be made publicly available and submitted to the Secretary of State.’”

This amendment to the Transport Act 2000 would require the Secretary of State to assess the adequacy of central government funding to support the provisions of bus services under franchised schemes.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 59, in clause 10, page 6, line 37, at end insert—

“(11) The Secretary of State must, no later than three months after the day on which this section comes into force, lay before Parliament regulations specifying the qualifications and criteria required for a person to be considered an ‘approved person’ for the purposes of section 123D of the Transport Act 2000.

(12) A statutory instrument containing regulations under subsection (11) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”

This is a probing amendment to inquire whether the Secretary of State intends to issue the criteria for the “approved persons” role in the near future. A report from an approved person must occur before a franchised scheme can go ahead.

Clause stand part.

Clause 11 stand part.

Government new clause 4—Miscellaneous amendments.

New clause 15—Franchising scheme: restriction—

“Where a franchising authority, or two or more franchising authorities acting jointly, prepare an assessment of a proposed franchising scheme under section 123B of the Transport Act 2000 but fail, for any reason, to make and publish a scheme under section 123H of the Transport Act 2000, they must not initiate another franchising assessment for the same area, or a substantially similar area, for a period of five years from the date on which the assessment was prepared.”

This new clause prevents franchising authorities from repeatedly conducting franchising assessments for the same or substantially similar areas within a five-year period if they do not proceed to make and publish a franchising scheme.

New clause 36—Franchising assessments to consider integration of public transport—

“In section 123B of the Transport Act 2000 (assessment of proposed scheme), at the end of subsection (3) insert—

‘(g) how the proposed scheme will allow for or facilitate integration across modes of public transport.’”

This new clause would require an assessment of a franchising scheme to include an assessment of the impact on integrated transport.

[Mr Kohler]

It is a pleasure to serve under your chairship, Sir Desmond. While I am broadly supportive of much of the Bill, we must not lose sight of the fundamental challenge—the lack of sufficient funding and expertise in local authorities to fully take advantage of the powers that it provides.

--- Later in debate ---

[Siân Berry]

I do not; I just hope that the Government realise what I was trying to do. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 13 ordered to stand part of the Bill.

Clause 14

Socially necessary local services

[Mr Kohler]

I beg to move amendment 66, in clause 14, page 9, line 23, at end insert—

“(4B) When the list of socially necessary local services required by subsection (3)(ba) is reviewed or amended, the relevant authority or authorities must—

(a) assess the overall adequacy of the existing network of local services in their area or combined area in enabling passengers to access essential health settings, education, goods and services, economic opportunities, and social activities;

(b) identify any gaps in the provision of socially necessary local services across the network and where existing services are insufficient, absent or cause a material adverse effect on passengers' ability to access those goods, services, opportunities, or activities;

(c) describe what further action the authority or authorities intend to take to address any identified gaps including, where appropriate, proposals for new or altered services, with timelines for implementation, and consideration of funding or alternative delivery models.

(4C) The authority or authorities must publish any assessment and proposals made under subsection (4B) after consulting—

(a) persons operating local services in the area or combined area;

(b) users of local services;

(c) NHS providers;

(d) education providers;

(e) local employers and businesses;

(f) people with disabilities; and

(g) any other persons whom the authority or authorities consider it appropriate to consult.”

This amendment would insert into the Transport Act 2000 a requirement for local transport authorities to review the adequacy of local services when considering changes to the list of socially necessary local services.

[The Chair]

With this it will be convenient to discuss amendment 64, in clause 14, page 10, line 34, at end insert—

“(7) The Secretary of State must, at intervals not exceeding six months, lay before Parliament a statement setting out—

(a) the number of socially necessary local services in England;

(b) the number of socially necessary routes that have their whole service cancelled;

(c) the average frequency of buses on socially necessary local services;

(d) the average number of days a week that socially necessary local services are in operation;

(e) total ridership on socially necessary local services; and

(f) the steps the Government is taking to improve the provision and reliability of socially necessary local services, their frequency, and bus ridership.

(8) For the purposes of subsection (7), ‘socially necessary local service’ has the same meaning as in section 138A of the Transport Act 2000.

(9) Each statement laid under this section must include data covering the six-month period immediately preceding the date of the statement.”

This amendment would require the Secretary of State to provide Parliament with a bi-annual statements including information of socially necessary local bus services and steps the Government plans to take to address any identified issues.

[Mr Kohler]

Clause 14 is a vital provision in the Bill that seeks to strengthen the provision and protection of routes that are deemed socially necessary. I will begin by addressing the amendments tabled by the Liberal Democrats, before turning to others.

Although I fully support the principle behind clause 14, there are several areas where it can and must be strengthened to ensure that it functions as a genuinely effective tool for safeguarding essential bus services. Under the clause, the Transport Act is amended to require that local transport authorities maintain a list of socially necessary routes and review it from time to time. Crucially, there is no detail on how that review should be conducted. That lack of clarity risks rendering the duty vague and unenforceable.

Amendment 66 seeks to address that gap. It sets out how the review process should work, requiring that gaps in network coverage be identified and that changes to improve the network are actively considered. Importantly, it would also ensure that reviews and amendments take place in consultation with relevant stakeholders. That would embed transparency and accountability into the process.

Amendment 64 would require a biannual review by the Secretary of State of the level and condition of socially necessary services across the country. Given that local authorities will already be maintaining those lists, it is not an unreasonable burden. Rather, it would create national oversight and parliamentary scrutiny—something currently missing from the system. Having consistent data on ridership, frequency and cancellations would greatly improve transparency, inform better decision making, and keep socially necessary services at the forefront of Government planning and funding.

Amendment 39, tabled by the hon. Member for Brighton Pavilion on behalf of the Green party—

[The Chair]

Order. We are debating only amendments 66 and 64.

[Mr Kohler]

Okay—sorry.

[Steff Aquarone]

I rise to speak to clause 14 and amendments 66 and 64, tabled by me and my hon. Friend the Member for Wimbledon.

I warmly welcome the clause’s protection of socially necessary services. I have spoken before about how important local bus services are for our rural areas, and I want to bring that to life because the term “socially necessary” does not do justice to the significance of those services. For many, a more accurate term would be “lifeline” services. They are absolutely vital for many small villages, and they are often far from profitable. Although they may not bring a grand economic boost to the operator or local authority, they bring a huge social benefit to the communities that they serve.

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[Simon Lightwood]

I thank the hon. Members for Wimbledon, for North Norfolk and for Chesham and Amersham (Sarah Green) for tabling a series of amendments to the clause. Amendment 66 would ensure that local transport authorities review their current local bus network to identify any gaps. I agree with hon. Members that it is important for local transport authorities to understand and know their networks. However, the desired effect of the amendment is already covered by the Transport Act 2000, which places a requirement on an authority to meet the needs of people living or working in their area. The local transport plan, which must be prepared by a local transport authority, is an important document that establishes the transport needs of local communities. Indeed, the existing measures in the Bill go even further than the 2000 Act by ensuring that members of the enhanced partnership work together to identify key socially necessary services, and to develop a robust plan in case any changes are proposed to them.

I turn to amendment 64. The Department already publishes large amounts of bus data through both the Bus Open Data Service and bus statistics on gov.uk. The Bill provides for even more data collection under clause 24, which specifically ensures that data collected by the traffic commissioner is shared with the Secretary of State. I therefore believe that the amendment is unnecessary. We already deliver a large amount of information to the public that can help them to understand all services operating in their area—not just socially necessary services—and may include many of the details listed in the amendment.

[Mr Kohler]

I would like to press amendment 66.

Question put, That the amendment be made.

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[Joe Robertson]

It is a pleasure to serve under your chairmanship, Sir Desmond. I was planning to say a few words about amendment 39, but the shadow Minister has really said it: it not necessary to include healthcare services, schools and other educational institutes in the definition. Of course, I agree with the hon. Member for Brighton Pavilion that those things are important. I can think of dozens of important and socially necessary places where buses might go, but I would not propose to add them all to clause 14(2)(c), not least because when attempting to make an exhaustive list, it is always possible to leave things out, and there is great scope for argument over issues on the periphery that some people think are important and others do not.

The measure’s wording is broad. A “social necessary local service” is defined as one that allows passengers to access: “essential goods and services”, which is very wide; “economic opportunities (including employment)”, which is very wide; or “social activities”, which is also very wide. Plainly, healthcare services, schools and other educational institutes fall within those definitions, so the amendment is unnecessary. However, I welcome the hon. Lady’s highlighting those things, because healthcare and schools plainly rank very highly.

[Mr Kohler]

The Liberal Democrats strongly support amendment 39, which was tabled by the hon. Member for Brighton Pavilion. As has been said, it is remarkably similar to, if not the same as, an amendment that we tabled in the House of Lords. It rightly proposes to expand the definition of “socially necessary local service” to include routes that serve healthcare facilities. I recognise the argument that the existing definition already covers them, but we think it is important to explicitly include hospitals, GPs and clinics. Accessing healthcare is a social necessity that should be explicitly recognised in law.

The same is true of education. From conversations with my hon. Friends the Members for Westmorland and Lonsdale (Tim Farron), for Esher and Walton (Monica Harding) and for North East Hampshire (Alex Brewer), to name a few, I know that there are growing concerns about school and college bus routes being cut, leaving students unable to travel independently to their places of learning.

The Government may argue that such services are already included under the definition but, if that is the case, why not make that explicit? Clarifying it in statute would only strengthen the Bill and provide clearer guidance for local authorities.

[Simon Lightwood]

Amendment 39 is not necessary as this issue has already been addressed during debates on the Bill in the other place. At the time, my noble Friend the Minister for Rail made a statement on the Floor of the House to the effect that the definition of a socially necessary local service encapsulates access to healthcare and schools as “essential goods and services”. I hope that that reassures the hon. Member for Brighton Pavilion about the Government’s intention. That being said, the Government will produce official guidance for local authorities on the issue of socially necessary local services. That guidance will refer to healthcare services and educational institutions as constituting “essential goods and services”.

Amendment 38 would expand the definition of socially necessary local services to include services that have been abolished in the past 15 years. In addressing it, we should consider the practical issues. A service that has been cancelled in the past 15 years may no longer meet the current needs of the community, which change over time. Furthermore, it is possible that previous services may have been folded into newer and more relevant bus routes. For those reasons, the amendment might not yield the expected beneficial outcomes.

That is by no means a prohibition or limitation on the powers of local transport authorities, however. As local transport authorities continually evaluate the needs of their communities, they still retain the power to consider implementing services along former routes, if they believe that doing so would address the needs of their communities. The amendment is therefore not necessary, so I ask the hon. Member for Brighton Pavilion not to press it.

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[Siân Berry]

I do not. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Mr Kohler]

I beg to move amendment 54, in clause 14, page 10, line 26, at end insert—

“(4A) Where a socially necessary route has been identified in accordance with section 138A(15) of the Transport Act 2000, and no alternative operator has implemented the service within a period of six months, the relevant local authority must take reasonable steps to implement a service on the socially necessary route as far as is reasonably practicable.

(4B) Where a local authority has established a socially necessary service in the absence of alternative operators, the local authority must publish a report on the establishment and operability of the service within six months, which should include, but not be limited to—

(a) the scope and nature of the service;

(b) the estimated operating costs of the service and any identified funding gaps;

(c) the impact of the service on local accessibility and transport needs;

(d) a timeline for the operation of the service;

(e) where the local authority is unable to meet the financial burdens of operating the service within six months of establishing that service, a statement specifying the extent of the financial shortfall.

(4C) Where a local authority makes a statement under subsection (4B)(e), the new burdens doctrine applies to the provisions of this section and the Secretary of State must consider providing appropriate financial support to the local authority to ensure the service can be delivered.

(4D) Within six months of the passing of the Bus Services Act 2025, the Secretary of State must publish guidance on what funds will be available for the purposes of subsection (4C).

(4E) A service established under these provisions is a local service operated by a local government bus company as defined by section 22(5).”

This amendment would place a duty on a relevant local authority to implement a socially necessary service should alternative operators fail to do so, with provisions for financial support if needed and the possibility of transferring responsibility to an alternative operator once the service is established.

[The Chair]

With this it will be convenient to discuss amendment 74, in clause 14, page 10, line 34, at end insert—

“(7) The Secretary of State must, within 12 months of the passing of this Act, lay before both Houses of Parliament proposals for a scheme that would guarantee a service for socially necessary services where—

(a) no operator has implemented the service for a period of six months, and

(b) the local transport authority is unable to run the service.

(8) The Secretary of State must, when publishing their proposals for a scheme under this section, also provide guidance on how the scheme would be funded, including the criteria which would be used for assessing qualification for the scheme.

(9) Within a month of producing the proposals, the Secretary of State must ensure that time is made available in both Houses of Parliament for a substantive debate on the proposals.”

This amendment would require the Secretary of State to bring forward proposals for a scheme that would guarantee services for routes identified as socially necessary where no operator has implemented the service and the local transport authority does not have the capacity to do so.

[Mr Kohler]

Amendments 54 and 74 would establish a real safety net for socially necessary routes. Amendment 54 would place a duty on local authorities to step in to deliver a service when no commercial operator will do so, while placing a reciprocal duty on the Government to provide financial support to enable it. Amendment 74 would complement that by requiring the Secretary of State to create a formal funding mechanism for such services. The mechanism would include clear eligibility criteria, ensuring that local authorities could not designate routes as socially necessary arbitrarily, but must demonstrate clear social need. Together, the amendments would ensure that essential routes do not disappear due to market failure. They offer a practical, balanced solution to a growing problem, and I urge the Committee to support them. If we believe that these routes are socially necessary, we must find a mechanism to ensure that they are provided.

[Jerome Mayhew]

The Liberal Democrats’ amendment 54 would place a duty on local transport authorities to identify and then satisfy the need for all—and I stress “all”—socially necessary services, irrespective of supply, under an enhanced partnership. The amendment does not explain how the services would be supplied by the local authority—presumably, there would be a tender process—but it would require the authority to produce a report within six months. That report would identify the need, estimate the costs of provision and associated funding gaps, estimate the impact of a new service

“on local accessibility and transport needs”,

provide

“a timeline for the operation of the service”,

and specify local funding shortfalls. That measure, if adopted, would be a truly revolutionary departure for the identification of local need and subsequent funding, because it would hand demand assessment to the local authority, but the cost of provision to the Secretary of State. What could possibly go wrong? I genuinely look forward to the Minister supporting the amendment and explaining how he will fund that.

The Liberal Democrats’ amendment 74 would require the Secretary of State to advance proposals within 12 months to

“guarantee a service for socially necessary services”,

where that service has been absent for six months and

“the local transport authority is unable to run the service.”

That is a second extraordinary proposal, because it would again place identification of need—according to the highly subjective definition of social necessity—in the hands of the local authority, but would give the Secretary of State a legal duty to supply that assessed need. It envisages the Department for Transport directly running individual routes that have escaped the design of the franchise network or the enhanced partnerships. Presumably, since the Department for Transport has to supply for that need, it will be liable for procuring, right across the country, individual routes that are not part of a wider contractual arrangement. There we have it: the Department of Transport directly running individual routes, spread across the country, independent of wider bus provision. It sounds to me like a recipe for disaster.

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[Simon Lightwood]

I think it is sad that the hon. Gentleman does not share my confidence in local areas being able to shape their services.

I now turn to amendment 74, which is the final non-Government amendment tabled to clause 14. It seeks to ensure that there is a Government-backed scheme that will guarantee that all socially necessary local services continue to operate. As I am sure I have mentioned before, this Government have reaffirmed our commitment to bus services in the recent spending review by confirming around £900 million each year from 2026-27 to maintain and improve vital bus services. Allocations for that fund will be made through the bus funding formula, which already takes account of local need. The Department is also committed to review the current formula and ensure that it is allocated as fairly as possible. That will take place in due course.

[Mr Kohler]

Is the Minister confident that that money is sufficient to protect socially necessary services?

Department for Transport

Paul Kohler Excerpts

Wednesday 25th June 2025 Commons Chamber

[Mr Paul Kohler (Wimbledon) (LD)]

As we all know, strong connectivity is vital to economic growth and social prosperity. It is not just about convenience; it is key to boosting productivity, attracting regional investment and raising living standards. Central to that is making public transport more available, affordable and accessible.

The transport crisis in this country is clear. Since 2015 the number of local bus journeys has dropped by more than 1 billion—a quarter of all trips—with many routes cut and fares up by more than 50% since 2013. Rail use remains below pre-pandemic levels, while Government rail subsidies have surged to over £22 billion, 65% higher than they were before the pandemic, despite repeated above-inflation fare increases. So what is the plan? The estimates offer us some hope, but the picture is mixed.

Let me begin with the positive aspects. The 4.4% rise in capital spending is welcome, especially the boost for Transport for London and High Speed 2, which shows much-needed recognition of the transport network’s capital needs. The continued support for East West Rail and the trans-Pennine route upgrade is also welcome, as they are vital to connecting communities and driving growth—exactly the kind of strategic investment we need.

Sadly, although the Conservative Government claimed to back motorists, they did the opposite, and fewer than half our roads are now in good condition. The new road funding settlement is good news therefore, but it clearly falls short of what is needed. The support for devolution is also encouraging. Local leaders are best placed to deliver for their areas, and increased autonomy for transport in city regions is positive, even if not all the new money is in fact new. However, areas outside combined authorities must not be overlooked.

Of the negatives, the most concerning is the £150 million cut to day-to-day spending this year and over the spending review period, which will affect subsidies for trains and buses. The reductions threaten already fragile services and the efforts to promote walking and cycling, and raise serious doubts about the Department’s ability to achieve its stated priorities.

There is a clear mismatch between the Government’s ambitious transport goals and their budget priorities. An £81 million rise in central administration costs, largely to cover the higher employer national insurance contributions that the Government introduced, raises questions about whether resources are being prioritised towards administrative overheads, rather than directly supporting frontline transport improvements.

Despite pledges to address climate change, the budget lacks detail on funding for green infrastructure, public transport decarbonisation and active travel, leaving the DFT open to accusations of setting green ambitions without a clear financial or operational pathway—greenwashing, effectively.

The £50 million in costs tied to the closure of phase 2 of the HS2 programme further reflects issues with long-term strategic planning. Not only does the expenditure represent sunk costs, with no return on investment; it casts doubt on the Department’s ability to deliver the major infrastructure projects that are so vital for national connectivity and economic growth.

The Liberal Democrats propose simplifying ticketing, improving accessibility and boosting connectivity, and also increasing usage and income by freezing fares. We also advocate a 10-year rail electrification plan—investing in zero carbon by ensuring that all new lines are fully electrified.

Buses, the nation’s most popular form of transport, get little support from the estimates. The franchising reforms in the Bus Services (No. 2) Bill are welcome, but they will not restore regular, affordable services without funding and expertise. We need more than just three people in the bus centre of excellence. Years of neglect following Tory deregulation have destroyed much of our national bus network, isolating communities and holding back growth. Clearly, the Chancellor’s hike of the fare cap from £2 to £3 should be reversed, as it is causing real hardship for some of the poorest in society, yet the estimates reveal continued cuts to bus subsidies, which is precisely the wrong approach when communities desperately need reliable, affordable bus services.

The Liberal Democrats believe that active travel infrastructure must accompany public transport reform, but the Government’s approach is disappointing. Although £246 million is currently allocated to Active Travel England, funding is set to be cut by more than £90 million next year, undermining Labour’s earlier promises of unprecedented investment. The Liberal Democrats propose a different path: a nationwide active travel strategy to build new cycling and walking networks that are better integrated with existing transport. This cost-effective, ecofriendly approach would connect homes, schools, high streets and transport hubs.

These estimates show a Department and a Government who lack ambition. While increasing capital spending and investing for the future are positive, cutting day-to-day spending is a poor decision from a Government who say economic growth is their highest priority. We need a transport system that works not just for the next decade, but for the next bus, the next train, the next school run and the next hospital visit. This means funding day-to-day services properly, empowering local authorities and putting passengers at the heart of every decision, for which the Liberal Democrats will continue to fight.

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[Mike Kane]

We are giving back control of buses to local authorities—as difficult as it is in some circumstances. It is a £1 billion commitment. People in rural economies need to get about just as much as people in cities and we are committed to making sure that that happens.

Let me turn to my hon. Friend the Member for Monmouthshire (Catherine Fookes). I cannot wait to visit and to ride on the No. 65 bus. She is a doughty campaigner for her constituency. She also talked about two Labour Governments working hand in hand to bring rail investment to Magor and Undy station, and I am glad that she has had correspondence with the Roads Minister on the safety of the M48.

The hon. Member for Didcot and Wantage (Olly Glover) rightly talked about HS2. He highlighted the need to connect our maritime industries on the south coast with the rail network, so that we can take maximum advantage of both maritime and rail to get that freight off our roads.

My hon. Friend the Member for Dartford (Jim Dickson) summed it up when he spoke about the collapse of Galley Hill Road, which I thought was a metaphor for transport under the last Government. We have committed to the Lower Thames Crossing, with an initial investment of £590 million, and we will be making announcements on that in due course. We have also put in £54 million to fix potholes in Kent. The Government are showing that we are committing to the Lower Thames Crossing, with announcements to come, and are fixing the roads, and yet not one Reform Member came to this debate. Let us remind the people of Kent day in, day out about Reform’s lack of commitment to improving their lives compared with what we are doing.

I was with the predecessor of the hon. Member for Surrey Heath (Dr Pinkerton) at the British Ports Association. Do they only elect Scottish Members to the Surrey Heath constituency? I noticed that even some of the mannerisms were the same. The hon. Member made some important points about evidence-based transport systems. I think we are demonstrating that we are not a cultural, woke Government but are looking policy data to drive our decisions about how we best connect this country up. He also talked about road safety. Our manifesto included a commitment to long-term connectivity for transport across the country. That will be coming, so I hope he gets involved in the debate when it comes forward.

The hon. Member for Didcot and Wantage talked about HS2. We have accepted James Stewart’s recommendations about the cost overruns, although the hon. Member was right to highlight them. He also asked about how our railways and maritime industry can work together. Green shipping corridors will be key to the future of shipping, but the grid capacity in our coastal communities is not up to scratch. He knows that and we know that, and that is why we made manifesto commitments on our grid capacity. I note that we have already made announcements about greater European train connectivity, but I understand the point he makes about depot constraints; the Government are looking at that as well.

My hon. Friend the Member for St Austell and Newquay (Noah Law) is a real champion for Cornwall. I was glad that we could announce £4.1 million for Cornwall alone in 2025-26 in addition to the £201 million —which, as he mentions, is four times greater than the last settlement. We hope to see things improve in that wonderful part of the country.

The hon. Member for Wimbledon (Mr Kohler) always astonishes me. He is like some latter-day Hilaire Belloc in his pinstriped suits and polka-dot tie. He was so positive about the Government that I thought he was going to cross the Floor for a second; we will give him time. He mentioned being disappointed about some areas, but we have done more to decarbonise transport this year, more for buses than any Government have done for a generation, and more for active travel in one year than any Government for a generation.

[Mr Kohler]

I thank the Minister for his compliments. Does he accept that Active Travel England will get £100 million less next year, and does he think that is a sensible way to move forward?

[Mike Kane]

Under this Government, Active Travel England gets settlements that go forward. I have to say that I thought the former Member for Uxbridge and South Ruislip—the former Prime Minister—was actually very good in this space, but the announcements he made were then all pared back. Local authorities need to have long-term continuing investment to connect routes and get people walking, wheeling and cycling. My constituents die of type 2 diabetes, hypertension and chronic obstructive pulmonary disease—all things that can be fixed by more of us walking, wheeling and cycling. Active travel is key to the Government’s health mission as well as to our transport mission.



I thank the shadow Minister, the hon. Member for Orpington (Gareth Bacon), for his contribution. He mentioned that the settlements for West Yorkshire, Greater Manchester, Merseyside and the west midlands were similar to those from 2023. Yes, they are, but this Government are delivering on these settlements. We had so many promises from the last Administration, but we are delivering.

We will take no lessons from the Opposition on the costs of Great British Rail, which I think the nation is proud of, given that we were left to clear up the debacle of the overrun costs of HS2—a project that was cut by the previous Prime Minister while he was at the Tory party conference in Manchester. It was the most astonishing decision, and the most astonishing place to announce it. As a proud trade union member, I am glad that the trade unions have come to the table this past year. After years of industrial strife, we are solving the disputes, particularly in the railway industry, and services are beginning to improve.

On long-term investment, I gently remind the shadow Minister that he voted for Prime Minister Liz Truss’s Budget, which left us with a £22 billion black hole. We have been tackling that as well as setting out our ambition for the future. We are fixing the foundations of our transport system to deliver the Government’s priorities. Our funding settlement for 2025-26 enables us to press ahead with reforming our bus and rail services, to get to grips with the maintenance backlog, to empower local leaders to deliver, and to build transformative new routes for the country. The settlement announced earlier this month will build on that; it will drive progress on the Government’s missions, and improve transport for people and businesses across the country.

I thank hon. Members for contributing to the debate. I am grateful for the important work of the Transport Committee, and look forward to continuing to work with it. I commend the estimates to the House.