The industry has delivered a mixed response to yesterday’s news of extended government funding and support for continuation of the Bus Fare Cap Grant (BFCG) in England.
The sector breathed a sigh of relief that the £500 million package, which applies outside London, ends months of uncertainty around the scheduled end of the Bus Recovery Grant and fare capping scheme on 30 June. However, there were concerns that the revenue – which includes £160 million for local authorities and £140 million for operators into 2025 and £200 million for BFCG to November 2024 – is not enough.
Graham Vidler, Chief Executive of the Confederation of Passenger Transport (CPT), tells routeone: “We really welcomed the two-year nature of the funding settlement; that’s exactly what we were asking for and a move away from the three-month extension after three-month extension.”
Some of the detail around how the revenue will be allocated geographically remains to be revealed. While CPT told government that £260 million per year would be required to maintain services, the impact on local services could be very different geographically, says Mr Vidler. Earlier, he said: “The combination of the funding settlement and the £2 fare cap extension will not save every service in every part of the country.”
His thoughts are echoed by Urban Transport Group (UTG), who nevertheless welcomed the longer-term security offered by the announcement.
“The government’s decision to extend bus funding to 2025 offers a degree of longer-term certainty and brings to an end the stop-start approach that has dominated Government support for the bus since the pandemic,” says Rebecca Fuller, UTG Interim Director.
“However, we are yet to learn the crucial details around how local transport authority funding will be shared across the country and the extent to which this will depend on past allocations, such as Bus Service Improvement Plan (BSIP) funding.
“It seems likely that there will be winners and losers from this announcement and we are keen to ensure that our urban areas have the funding they need to not only safeguard but to also transform bus services as envisaged in the National Bus Strategy. To achieve this ambition, buses must do more than survive, they must be enabled to thrive.”
Dawn Badminton-Capps, Bus Users UK Director for England, likewise says the funding will be warmly received. However, she adds: “The difficulty in bus that we never seem to have enough money and the extra £300 million to protect vital services I don’t think that will be sufficient.”
Operators are publicly generally positive. A spokesperson for Stagecoach says: “We welcome the news and the continuing support from the government to get people back on board buses through an extension of operator funding, and an extension of the fare cap scheme in England.
“Bus networks need to evolve to reflect changes in the way we now live, work and travel. The announcement of this ongoing funding will help us to design and plan our services for the future, and we will be working closely with government to better understand the details of this extension and the impact on our services as we continue to help connect people, places and communities.”
Luke Marion, Oxford Bus Company, Thames Travel and Carousel Buses Managing Director, adds: “The further extension of the £2 fare capping scheme is excellent news for passengers and the bus industry.
“We have seen a positive impact on patronage thanks to the scheme and it has not only helped passengers continue to get out and about, but it has also helped operators maintain services. I hope the offer continues to encourage more people to give bus travel a try.
“Having longer visibility on government funding is also great news as it will help bus operators plan with more clarity and confidence and continue to maintain and develop good quality, reliable bus services.”
Funding in England outside London from 1 July 2023 onwards will take the form of the Bus Service Operators Grant+. The Department for Transport says it will contact operators with details of how to claim.
