Government publishes policy statement on local bus market in England

Tue 27 March 2012 View all news

The Department for Transport has published a new policy statement on the local bus market in England (outside London) and sets out a series of reforms to improve local bus subsidy and regulation in England. The Government says that the proposals will attract more people onto buses, to ensure better value for the taxpayer and to give local transport authorities more influence over their local bus networks.

The policy document - ‘A Green Light for Better Buses’ - confirms changes to the Bus Service Operators Grant (BSOG). In October 2010, the Government announced that the basic rate at which BSOG is paid per litre of fuel used would be reduced by 20%. However the introduction of this change was delayed until April 2012, so that bus companies would have a year and a half to prepare for it. 

The DfT estimates that, on average, the impact on passengers in England, unlike in Scotland and Wales, should be limited to a 1% reduction in service levels and a 1% increase in fares, when compared with the long-term trend, although it says it recognises the challenge for bus companies and local councils as they adjust to the new budget.

To view the policy statement please follow the associated links.


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