Bus Services (No. 2) Bill [Lords]

Wendy Morton Excerpts

2nd reading
Monday 2nd June 2025 Commons Chamber

[The Secretary of State for Transport (Heidi Alexander)]

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

I start by thanking my friend, the Minister of State for Rail, for being an excellent advocate and custodian of the Bill as it made its way through the other place. As someone who started his career on London’s world-famous red buses, there was no better person in the country than the noble Lord Hendy to kick-start the Government’s bus reform journey. I am proud to call him my friend, and I am grateful every day for his wise counsel, frank advice and gentle good humour.

What we saw in the other place, and what I hope we may be able to secure in this House, is constructive cross-party support. We all recognise how buses connect us to the things that matter most: work and school, friends and family, essential services and the weekly shop. The billions of bus journeys each year—equivalent to over 100 every second of every day—are the difference between vibrant communities and boarded up high streets, between aspiration and isolation, and between getting on and being forced to give up.

The Bill represents years of work in opposition and now in government to discard the failed 40-year model of deregulation in favour of putting passenger needs, reliable services and local accountability at the heart of the industry.

[Wendy Morton (Aldridge-Brownhills) (Con)]

I wholeheartedly agree with the Secretary of State on the importance of buses for connectivity. I note that the Bill talks about “socially necessary” services, but it would be helpful to have a better understanding of the definition of what they are beyond my own interpretation. For example, if a constituency does not have a train station, can we therefore have a greater assurance that we will see no loss in our bus services?

[Heidi Alexander]

Through the Bill, we will be giving local transport authorities the power to determine socially necessary local services. That relates to access to employment, jobs, things like health facilities, and education. That power will lie with local authorities and it will be for them to determine.

[Wendy Morton]

rose—

[Heidi Alexander]

I will make some progress.

Before I come to the Bill’s key measures, I will briefly set out the context. Although it may be tempting for me to lay the blame for the current state of buses entirely at the feet of the last Government, that would be neither right nor fair. They too inherited a broken, deregulated system that forced passengers to navigate multiple operators on similar routes, but with different tickets. They, too, faced declining patronage, with 1.8 billion fewer journeys outside London last year than in 1986, and, to their credit, they tried to fix that. The national bus strategy, bus service improvement plans and greater powers for mayors were all steps in the right direction to improve services for passengers.

[Wendy Morton]

Will the Secretary of State give way?

[Heidi Alexander]

I am going to make some progress.

However, in some areas such as franchising, the last Government did not go far enough, so this Bill will not only build on previous reforms but go further—much further—in fixing the faults that are still holding the industry back from meeting the needs of local people. I hope that Members in all parts of the House will see the merits of the approach that we are taking. After all, we have all heard from constituents about jobs not taken and opportunities missed because bus services are too unreliable, or do not operate on Sundays, or do not cater for night-time shifts.

--- Later in debate ---

[Heidi Alexander]

I am going to make a little more progress, but I shall be happy to take interventions later.

I was talking about the problems caused by bus services that are unreliable, do not operate at weekends or, perhaps, do not cater for individuals working night shifts. We all know that each of those stories is the story of a life frustrated, but, taken together, they constitute an anthology of wasted potential, of living standards and growth held back. That is why improving bus services underpins our plan for change, and it is why, despite difficult choices made across Government, we confirmed more than £1 billion in funding in the last Budget to protect vital routes and keep fares down.

[Wendy Morton]

rose—

[Ellie Chowns (North Herefordshire) (Green)]

rose—

--- Later in debate ---

[Gareth Bacon]

It is because there is no Division later. It is not because nobody cares, but because there is not going to be a Division.

The previous Conservative Government recognised just how vital local bus services are to keeping communities connected. From 2020 to when we left office last summer, the previous Government committed £4.5 billion to support and enhance bus services, including more than £2 billion to help local authorities implement their bus service improvement plans. Perhaps most importantly, we also introduced the £2 bus fare cap.

[Wendy Morton]

Just to be absolutely clear, there are Conservative Members who wanted to ask questions of the Transport Secretary, but she seemed a little unwilling. On the specific point of fares and affordability, can my hon. Friend help to ensure that passengers, whom the Bill should focus on, see value for money from this Bill? In the west midlands, Mayor Parker, under his plan to take back control of our buses, is actually taking money from our pockets and increasing fares by 8.6%?

[Gareth Bacon]

Yes, indeed. We are very interested in doing that, which is why we inserted a purpose clause in the other place to ensure that the key focus of this Bill is solely on passengers.

By maintaining the £2 bus fare cap, we ensured that bus travel remained affordable and accessible to as many people as possible, while helping families manage the cost of living. We have voiced deep concerns in both this Chamber and the other place about the impact, particularly on the most vulnerable, of Labour’s decision to scrap the £2 cap and raise it to £3. Make no mistake: this is bad for those in work, who will be £3,500 worse off because of this Government’s jobs tax, and bad for pensioners, who have seen their winter fuel payments cut and their energy bills rise, despite repeated promises from Labour to cut their energy costs by £300.

--- Later in debate ---

[Gareth Bacon]

Yes, my hon. Friend is completely correct, and I will come to that a bit later in my speech.

While we do not oppose the franchising of bus services, we do oppose a particular assumption that underlines this legislation, which is that the public sector is the solution to everything. Some local authorities may have the expertise and resources to successfully franchise passenger bus services, but let us be clear that many do not. The very central premise of the Bill—giving every local authority the unchecked power to implement franchising, regardless of its resources or capacity—is not an act of empowerment; it is irresponsible. By removing the need for the Secretary of State to consent to franchising, as required under the previous Conservative Government, this Government are eliminating crucial safeguards.

[Wendy Morton]

Will my hon. Friend give way?

[Gareth Bacon]

With respect to my right hon. Friend, I will not, because I am conscious that lots of Members want to speak.

Those safeguards are designed to ensure that franchising serves the passengers who rely on our bus services and the taxpayers who pay for them. The expertise required to design, manage and operate franchised networks is not readily available in most councils. That is why the Bus Services Act 2017 limited franchising powers to mayoral combined authorities, which are bodies with the scale, resources and democratic mandate to take on such responsibilities.

Crucially, the legislation we enacted to pave the way for mayoral combined authorities to issue franchising models also required those authorities to demonstrate that franchising would deliver genuine benefits for passengers. The removal of that requirement by this Bill is concerning, and it betrays the view held by those on the Government side of the House that the public sector is inherently infallible. Members will not be shocked that I do not share that view, but they do not need to take my word for it.