Question to the Department for Transport:

To ask the Secretary of State for Transport, what level of financial support she provides to local transport authorities for commercial bus networks during the transition to franchised bus systems; whether operators must meet performance requirements to receive such funding; and whether she has made an assessment of the sustainability of any such funding.

The Government has confirmed investment of over £3 billion from 2026/27 for the rest of the spending review period to support local leaders and bus operators across the country to improve bus services for millions of passengers. This funding includes a £3 million Bus Franchising Support Fund in 2026/27 for Mayoral Strategic Authorities in the process of developing and implementing bus franchising schemes which is designed to aid transition. We have also allocated further funding of approximately £10 million per year until 2029 to a franchising support package for local authorities that are actively seeking to transition to a franchised network.

In addition, we are providing multi-year allocations for local authorities under the Local Authority Bus Grant (LABG) totalling nearly £700 million per year, ending the short-term approach to bus funding and giving councils the certainty they need to plan ahead. This funding can be used to support bus services, including by those local authorities who are transitioning to franchised networks.

The Government also makes available over £240 million per year for bus operators through the longstanding Bus Services Operators Grant (BSOG) to continue running and protect existing services. Responsibility for payment of the BSOG is devolved to any LTA transitioning to franchising, and a share of the national BSOG budget will be transferred to the authority.

On operator performance, we expect operators to provide the service they have advertised. Where operators are consistently not providing this, the Traffic Commissioner can take action, including fines or suspending the operating licence.