Question to the Department for Transport:

To ask His Majesty's Government whether they plan to introduce cross-subsidy between rural and urban areas for franchised bus services where routes exist that are not themselves profitable.

Local authorities can choose to subsidise bus services, including those that span urban and rural areas, where commercial provision alone is not sufficient to meet the needs of local communities, and where it represents value for money. This is a decision for local authorities to make.

Under franchised bus services, the local authority can have responsibility for all elements of the bus network including routes, timetables and fares. There are many different options available for franchising for local authorities and cross subsidy between profitable and non-profitable routes is a possible feature of some models.

The Government is investing in bus and has committed £955 million for the 2025 to 2026 financial year to support and improve bus services in England outside London. Hertfordshire County Council has been allocated £12.2 million of this funding, helping to improve bus services across the area. Local authorities can use this funding to introduce new bus routes, make services more frequent and protect crucial bus routes for local communities.