Simon Lightwood, Local Transport Minister, on the Bus Services Bill

Within weeks of coming into office, I stood in the Commons to announce that 40 years of deregulated bus services would come to an end, that local transport authorities would finally be given powers to take greater control of local bus services. This was in advance of our landmark Bus Services Bill, introduced just before Christmas.

The Bill empowers local leaders to design bus routes and services that meet local needs. Whether that’s pursuing bus franchising, strengthened enhanced partnerships or local authority owned bus companies. 

We’re clear: it’s time to make it easier for local leaders to deliver on local needs, it’s time to remove the ideological ban on local authority owned bus companies, and it’s time to put passengers before profit – focusing on the things that matter most to people such as improving reliability and safety. And we know this works.

In Greater Manchester, passenger numbers and revenues have increased in those areas first placed under public control. Roads in the city can now be managed in a way that works for buses, which means unexpected congestion or unplanned roadworks don’t leave passengers stranded. 

But Greater Manchester’s ambitions aren’t just to improve buses, but integrate them too – ensuring they are part of a transport network that works together, that offers seamless journeys, that provides real choice. It’s something we want the whole country to emulate, but we recognise it is not a one size fits all approach. It’s why I want the CPT and its members to respond to the call for ideas for England’s first Integrated National Transport Strategy, so we can usher in a revolution in how Britain moves.

However, better bus services are only part of the change we’ll deliver. We want quieter, cleaner and smoother journeys too – which is why greener buses must be the future. And we know the demand exists. Since November 2024, over 7.6% of the 30,000-strong English bus fleet is already zero emission and this continues to grow year on year. And no other European country registered as many electric buses in 2023 as the UK, with ZEBs accounting for over 60% of all new large buses introduced that year.

However, the Bus Services Bill will do more; accelerating our decarbonisation efforts, and ensuring new non-zero emission buses won’t be driven on local routes from 2030 at the earliest.

I know it’s ambitious, but we will work with the CPT and the entire sector to plan an orderly transition. And believe me when I say this will not just get Britain moving, but building too, representing a golden opportunity for UK bus manufacturers, both to supply electric buses here and to win export orders from abroad.

It is estimated that around 60% of Zero Emission Bus Regional Area funded buses will be procured from domestic bus manufacturers. And we’ll build on this, thanks to the new UK Bus Manufacturing Panel, which will bring together industry experts and local leaders to ensure the UK remains a leader in bus manufacturing.

Finally, let me touch on investment, because when difficult decisions are being made across the economy this Government is backing our buses with over £1 billion in funding to protect vital routes and keep fares down. Councils such as Leicester, the Isle of Wight, Torbay and Cambridgeshire will see unprecedented levels of bus funding. At risk routes will be saved and passengers will see faster, more reliable journeys. And we’re ensuring passengers keep more money in their pockets with £150 million being invested to continue to cap fares, ensuring passengers don’t face a cliff edge of higher prices that would have seen some fares rise by 80%.

And we’re changing how we allocate bus funding – which has historically been overly complex and inconsistent. The days of councils wasting resources to compete for bus funding are over. Instead, we’re allocating based on population size, the distance buses travel and levels of deprivation. This rightly puts fairness at the heart of future funding. Ensuring taxpayer money is spent in the areas of greatest need and where it will have the most impact. 

An excerpt of Local Transport Minister Simon Lightwoods' speech at Confederation of Passenger Transport conference 23rd January 2025.