Question to the Department for Transport:

To ask the Secretary of State for Transport, whether his Department made an assessment of the impact of the rurality of each council area on the level of funding provided for each bus service improvement plan.

The Government recognises the importance of transport provision in rural areas and is committed to finding solutions which ensure that local communities in these areas have viable and improved transport services.

The Government is supporting LTAs and bus operators with the provision of local bus services. Over £1 billion was allocated to 34 Local Transport Authorities (LTAs) in the first phase of funding for LTAs to deliver their BSIPs. All other LTAs received funding from the £160m BSIP+ fund announced in May 2023. On 4 October Government announced new funding of over £1bn from redirected HS2 funding to levelling up bus services across the North and Midlands, with £150m allocated for 2024/25. This funding has been provided to both urban and rural areas (e.g. Shropshire).

We have also announced that a new uplift of 60% will be added to Community Transport Operators’ (CTOs) Bus Service Operators Grant (BSOG) claims until 31 March 2025. On top of this, we have extended the £2 fare cap, which includes Demand Responsive Transport (DRT) funded through the Rural Mobility Fund (RMF), until the end of 2024, meaning we are investing nearly £600 million in total to cap bus fares.

LTAs in receipt of BSIP and/or BSIP+ funding may use the funding to target it on the actions that they – and local operators through their Enhanced Partnership (where relevant) – believe will deliver the best overall outcomes in growing long term patronage, revenues and thus maintaining service levels, whilst maintaining essential social and economic connectivity for local communities.