As you are no doubt aware, the Bus Recovery Grant (BRG) is due to end on 31st March 2023. CPT and ALBUM have been making the case to the government for a longer-term increase to baseline bus funding from April 2023 to mitigate the impact of this on the sector and, importantly, on passengers. At present, no announcement has been made about bus funding after March 2023.
It is possible that no information will be available before the Chancellor’s Spring Budget statement on 15 March 2023. Whilst CPT and ALBUM are working hard to make a compelling case for the sector, it is also possible that there will be no additional funding for services after March 2023.
On that basis, operators will wish to draw up contingency plans that will assess the impact on fares and service levels if BRG is not extended or replaced. In particular, operators should review the implications for fares and services with their Local Transport Authorities as soon as possible.
While operators are keen to maintain and develop services to the benefit of passengers and their communities, the cost pressures facing the industry cannot simply be absorbed through a “business as usual” approach. ALBUM and CPT continue to stress to the Department for Transport that there will be a substantial negative impact on passengers if there is no increase in long-term bus funding to mitigate the impact of the withdrawal of BRG from April this year.
ALBUM Chairman Bill Hiron says:
“Bus operators face a major challenge at the end of March when the current Bus Recovery Grant and financial support for the £2 fare cap across England (outside London) come to an end. There are serious challenges ahead for both fares and service levels; we want to work with our local authority partners to understand the impact on passengers if additional funding from central government comes to an end in March.”
Graham Vidler, Chief Executive of the Confederation of Passenger Transport, says:
“Passengers face uncertainty as operators and local authorities wait for a decision on the Bus Recovery Grant, which could lead to service reductions, if not replaced in April.
“We remain hopeful from our discussions with Government that Ministers are considering moving away from piecemeal support to the proper, long-term funding of passenger bus services.
“Without sustainable and cost-effective Government investment, councils and operators cannot rollout a package of bus policies to massively improve bus services for passengers, meaning local areas miss out on significant economic, health and environmental benefits as a result.”