Labour announces new funding to reverse Tory cuts to 3000 bus routes

Labour is today (Thursday) announcing new funding of £1.3bn per year to reverse cuts made to 3000 bus routes by the Tories since 2010 and to fund the expansion of new bus services.

Reinstating bus services across the country will provide a lifeline to many people, particularly the elderly, the vulnerable and people living in rural areas who have been totally cut off as a result of their bus services disappearing.

Increasing bus use will also combat air pollution and climate change impacts, address inequalities and support local economies.

This policy complements Labour’s plans to put communities in control of local services by regulating and bringing into public ownership local services, and introducing free bus fares for young people.

Over 3000 bus routes have been cut or withdrawn since 2010.

Jeremy Corbyn MP, Leader of the Labour Party, and Andy McDonald MP, Shadow Transport Secretary, will announce the new funding on a visit today to Nottingham where the Labour council still runs their own buses including a fleet of eco buses.

Jeremy Corbyn MP, Leader of the Labour Party, said:

“Bus services have been devastated by nine years of austerity. Thousands of routes have been axed, fares have soared and passenger numbers are in freefall.

“Local services are a lifeline for many, particularly the elderly and those in rural areas. Cuts have had disastrous consequences for our towns and city centres and for air pollution and the environment.

“Bus networks are essential for towns and cities and for tackling rural poverty and isolation, which is why Labour is committed to creating thriving bus networks under public ownership.”

Andy McDonald MP, Labour’s Shadow Transport Secretary, said:

“The Tories have neglected buses, along with the people and communities who rely on them.

“Slashing bus funding damages our communities by cutting people off from work and leisure and worsening congestion and air pollution.

“Labour is announcing an end to austerity for buses and the funding needed to transform local services to allow our towns and cities to thrive.”

Ends

Notes to editors

• Labour will invest £1.3bn per year - a ‘Bus Transformation Fund’. This is to reverse £645m per year of real terms cuts to bus funding and to invest the same amount again.  

• Net government support for local bus services has been cut in real terms by£645m per year between 2009/10 and 2017/18: Net government support for local bus services and concessionary travel by metropolitan area status and country:England, BUS0502b.

• The policy will be funded through Vehicle Excise Duty (VED) revenue. VED is scheduled to be hypothecated to a new Roads Fund from 2020-2021 to be spent on road building. Labour would widen this hypothecation to a Sustainable Transport Fund. Labour’s National Transformation Fund is available to fund road building. VED revenue is forecast to be £7.1bn in 2021-22. Office for Budget Responsibility - Economic and fiscal outlook, March 2019 Table 4.3, pg76

• Over 3000 bus routes have been cut or withdrawn since 2010, Buses in Crisis 2018, The Campaign for Better Transport -https://www.bbc.co.uk/news/uk-england-44681974

• Britain’s bus coverage is at a 30 year low. DfT statistics – vehicle miles on local bus services: Great Britain, annual from 1960,Table BUS0201a.

• Outside of London, the number of passenger journeys has fallen by 10% since 2010. There were 244 million fewer journeys in England outside London per year in 2017/2018 compared with 2009/2010. (BUS S0103)

• Between 2010 and 2018, there has been a 32% increase in local bus fares in England, outside London, BUS0405, Local bus fares index by metropolitan area status and country: Great Britain.

• Median full-time weekly earnings only grew by 13% over this period, meaning bus fares have increased at two and a half times the rate of wages.

• Public control of buses would provide for: profitable services to subsidise non-profitable but socially-important services; simplified ticketing and improved information to increase passenger numbers; and the reduction or elimination of private profits being taken out of the system. If buses were publicly controlled or owned throughout England, annual savings of £276 million per year could be achieved: TfQL, 'Building a world-class bus system', 2016.

• The next Labour government will provide funds for free travel for under-25s to local authorities that introduce bus franchising or move to public ownership of their local bus services. This could benefit up to 13 million younger people and will support and incentivise local authorities to create municipally owned bus companies.https://www.independent.co.uk/news/uk/politics/jeremy-corbyn-free-bus-travel-young-people-labour-party-under-25s-passes-a8300341.html

• Greater use of public transport reduces congestion, air pollution and carbon emissions. Free bus travel for under-25s will help generate lifelong increases in public transport use.

• 13 million young people in England stand to benefit from Labour’s policy to provide free bus travel to under-25 year olds. ONS, MYE1: Population estimates: Summary for the UK, mid-2017.

• A fully loaded double decker bus could take up to 75 cars off the road. Based on average vehicle occupancy for both buses and cars, one bus moves 10 times as many people as a car. A modal shift to bus use will reduce congestion, air pollution and climate change impacts.

• Labour’s announcement has been endorsed by The Association of British Commuters, and the bus worker unions Unite and RMT:

"Public transport needs rebuilding from the ground up, and this means prioritising buses. Investment on this scale would lead to long-term social and economic benefits for the whole of the UK; paying dividends in terms of public health, social inclusion and transport poverty." - Emily Yates, co-founder of the Association of British Commuters.

“Unite welcomes this investment in bus services which have been eroded by successive Tory Governments and the major bus operators whose quest for increased profits has seen communities isolated with the most vulnerable members of the public unable to travel.

“Labour’s proposals recognise the importance of bus services with the re-regulation of such services of paramount importance for workers, passengers and communities.” - Bobby Morton, National Officer Unite the Union.

 “This reversing of the horrendous Tory and Lib Dem austerity inflicted on bus services will be welcomed by bus passengers and workers alike, the threat of climate change and the importance of buses to our communities and economy means we cannot afford not to invest in our bus services.” - Mick Cash, RMT General Secretary