Bus subsidy reform
Download the full outcome
Detail of outcome
This paper summarises responses to the consultation questions, outlines the government’s response to the issues raised and identifies the decisions that have now been taken.
We have also published a final impact assessment.
Detail of feedback received
Feedback to the consultation questions are outlined in the government’s response document.
Original consultation
Consultation description
In March 2012, the government published Green light for better buses in which it set out a series of reforms to improve local bus subsidy arrangements and regulations in England outside London.
The proposals have been carefully formulated to attract more people onto buses, to ensure better value for the taxpayer and to give local transport authorities more influence over their bus networks.
This consultation paper seeks views on how the subsidy proposals set out in ‘Green light for better buses’ are to be implemented. In particular the consultation covers how changes to the payment of Bus Service Operators Grant (BSOG) are to be implemented.
BSOG is the main form of bus subsidy funded by the government and is paid at present to the companies which operate bus services. The reforms to BSOG set out in ‘Green light for better buses’ include:
- devolution of BSOG to local authorities where the funding relates to services they support - ie tendered services - to allow decisions to be taken locally on how it should be spent
- creation of a new local government fund - Better Bus Areas - to encourage local transport authorities and bus companies to work closely together to improve services and boost passenger numbers
- devolution to Transport for London (TfL) or the Greater London Authority of the BSOG paid to London bus operators who operate services under contract to TfL
- tightening the existing rules defining which bus services can claim BSOG, so that the funding is put to the best possible use
Related documents
- Reforming bus subsidy in England: final impact assessment
- Bus subsidy reform: an interactive guide for bus operators and local authorities
- Green bus fund publications
Documents
Last updated 5 July 2013 + show all updates
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Bus subsidy reform consultation analysis added.
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First published.