Bus Services: Finance

Question

Central and local government support for local bus services consists of payments for supported services, Bus Service Operators Grant (BSOG) and concessionary travel reimbursement (effectively a subsidy to concessionary passengers). In 2016/17, estimated total net support paid in England was £2.21 billion, of which £1.03 billion or 47% was for concessionary travel. In real terms, annual total net support for bus services since 2010/11 has averaged 23% more than in the 1996/97 to 2009/10 period.

Local authorities are best placed to decide how to provide supported bus services, reflecting local needs. The Government encourages local authorities, operators and local communities to work in partnership, and we have seen some excellent examples of how this can drive growth. For instance, bus usage in Bristol has increased by 42% since 2009/10 where there is a collaboration between the local authorities and the local bus operator First Bristol; whilst the Liverpool City Region Bus Alliance – between Merseytravel, Arriva and Stagecoach – has achieved impressive strong patronage growth, with the Alliance reporting that bus journeys made by all paying passengers went up by 16.2 per cent overall in the three years up to Autumn 2017.