Bus Services (No. 2) Bill [Lords] – in a Public Bill Committee at 3:00 pm on 26 June 2025.
Paul Kohler
Liberal Democrat Spokesperson (Transport)
3:00,
26 June 2025
I beg to move Amendment 66, in Clause 14, page 9, line 23, at end insert—
“(4B) When the list of socially necessary local services required by subsection (3)(ba) is reviewed or amended, the relevant authority or authorities must—
(a) assess the overall adequacy of the existing network of local services in their area or combined area in enabling passengers to access essential health settings, education, goods and services, economic opportunities, and social activities;
(b) identify any gaps in the provision of socially necessary local services across the network and where existing services are insufficient, absent or cause a material adverse effect on passengers' ability to access those goods, services, opportunities, or activities;
(c) describe what further action the authority or authorities intend to take to address any identified gaps including, where appropriate, proposals for new or altered services, with timelines for implementation, and consideration of funding or alternative delivery models.
(4C) The authority or authorities must publish any assessment and proposals made under subsection (4B) after consulting—
(a) persons operating local services in the area or combined area;
(b) users of local services;
(c) NHS providers;
(d) education providers;
(e) local employers and businesses;
(f) people with disabilities; and
(g) any other persons whom the authority or authorities consider it appropriate to consult.”
This amendment would insert into the Transport Act 2000 a requirement for local transport authorities to review the adequacy of local services when considering changes to the list of socially necessary local services.
Desmond Swayne
Conservative, New Forest West
With this it will be convenient to discuss Amendment 64, in Clause 14, page 10, line 34, at end insert—
“(7) The Secretary of State must, at intervals not exceeding six months, lay before Parliament a statement setting out—
(a) the number of socially necessary local services in England;
(b) the number of socially necessary routes that have their whole service cancelled;
(c) the average frequency of buses on socially necessary local services;
(d) the average number of days a week that socially necessary local services are in operation;
(e) total ridership on socially necessary local services; and
(f) the steps the Government is taking to improve the provision and reliability of socially necessary local services, their frequency, and bus ridership.
(8) For the purposes of subsection (7), ‘socially necessary local service’ has the same meaning as in section 138A of the Transport Act 2000.
(9) Each statement laid under this section must include data covering the six-month period immediately preceding the date of the statement.”
This amendment would require the Secretary of State to provide Parliament with a bi-annual statements including information of socially necessary local bus services and steps the Government plans to take to address any identified issues.
Paul Kohler
Liberal Democrat Spokesperson (Transport)
Clause 14 is a vital provision in the Bill that seeks to strengthen the provision and protection of routes that are deemed socially necessary. I will begin by addressing the amendments tabled by the Liberal Democrats, before turning to others.
Although I fully support the principle behind clause 14, there are several areas where it can and must be strengthened to ensure that it functions as a genuinely effective tool for safeguarding essential bus services. Under the clause, the Transport Act is amended to require that local transport authorities maintain a list of socially necessary routes and review it from time to time. Crucially, there is no detail on how that review should be conducted. That lack of clarity risks rendering the duty vague and unenforceable.
Amendment 66 seeks to address that gap. It sets out how the review process should work, requiring that gaps in network coverage be identified and that changes to improve the network are actively considered. Importantly, it would also ensure that reviews and amendments take place in consultation with relevant stakeholders. That would embed transparency and accountability into the process.
Amendment 64 would require a biannual review by the Secretary of State of the level and condition of socially necessary services across the country. Given that local authorities will already be maintaining those lists, it is not an unreasonable burden. Rather, it would create national oversight and parliamentary scrutiny—something currently missing from the system. Having consistent data on ridership, frequency and cancellations would greatly improve transparency, inform better decision making, and keep socially necessary services at the forefront of Government planning and funding.
Amendment 39, tabled by the hon. Member for Brighton Pavilion on behalf of the Green party—
Desmond Swayne
Conservative, New Forest West
Order. We are debating only amendments 66 and 64.
Steffan Aquarone
Liberal Democrat, North Norfolk
I rise to speak to Clause 14 and amendments 66 and 64, tabled by me and my hon. Friend the Member for Wimbledon.
I warmly welcome the clause’s protection of socially necessary services. I have spoken before about how important local bus services are for our rural areas, and I want to bring that to life because the term “socially necessary” does not do justice to the significance of those services. For many, a more accurate term would be “lifeline” services. They are absolutely vital for many small villages, and they are often far from profitable. Although they may not bring a grand economic boost to the operator or local authority, they bring a huge social benefit to the communities that they serve.
I am sure that Committee members are enjoying the in-depth look at Norfolk’s bus services by me and my Constituency neighbour, the hon. Member for Broadland and Fakenham. The No. 54, which serves both our constituencies, journeys from North Walsham to Norwich via a less direct and profitable route so that it can serve rural and poorly connected communities. Without support from local government, no profit-making operator would ever seek to make a journey between those two places that incorporates the outskirts of North Walsham, the villages of Skeyton and Swanton Abbott in my constituency, and the village of Badersfield, which my constituency neighbour and I are pleased to share, and then heads on a tour of many of his rural villages before arriving in Norwich.
I am pleased that the clause now gives such routes the definition and protection that they deserve, and I reassure the residents of rural villages that their lifeline services must be delivered. As the clause stands, it protects,
“(i) essential goods and services,
(ii) economic opportunities (including employment), or
(iii) social activities,”.
It goes on to note that the service, if lost, would have a material adverse effect on the ability of residents to access all of those things. I support ensuring access to all of those things, but there is a glaring omission in the access that it protects, which is access to health services. I am pleased to support Amendment 39, tabled by the hon. Member for Brighton Pavilion, which seeks to ensure that the classification of social necessity includes health services.
I am proud to have, in North Norfolk, the oldest population in the country. Many people in that community do not own a car, can no longer drive, or may require more regular trips to medical appointments. I am concerned that a service that is vital for access to healthcare could fall outside the remit of the currently prescribed reasons for socially necessary classification. I will give the Committee a real example of how that could happen in my area, but first, I reassure my constituents that neither of the services that I am going to mention is currently at risk.
Residents in Blakeney and the surrounding villages recently lost the Blakeney GP surgery, so most patients will now have to travel to a GP surgery in Holt to see a GP. The 46 service is the Coasthopper that allows access to Holt, runs through Blakeney, and can take residents all the way to Wells-next-the-Sea. It could be argued that Blakeney residents can access all three of the Bill’s current criteria in Wells, but Holt is crucial for access to their GP. Without clarity, that GP access is not protected, so someone wishing to withdraw the service could argue that access to the criteria has not been materially adversely affected, according to the Bill.
We are lucky that those important routes are not at risk, nor have I heard any indication that they could be, but I outline a scenario that is not impossible and could be replicated in any other rural community across the country. I am sure there are places where that example sounds familiar, which are currently fighting to save their services.
The Minister may say that “essential services” is a wide, catch-all term that will cover this issue, but I am increasingly concerned that we are using imprecise and wide-ranging terms to avoid making any specifications that ensure important protections. It is irresponsible for us to leave the Bill in that state, and wait for a group of residents to have to challenge a service withdrawal in the courts as they fight for their definition of an essential service. As drafted, I do not believe that the Bill provides an adequate level of protection for access to medical appointments and health services, but we can avoid all that hassle if the Government accept the amendment.
Jerome Mayhew
Shadow Minister (Transport), Opposition Whip (Commons)
3:15,
26 June 2025
I rise to speak briefly in support of Liberal Democrat Amendment 66, which inserts a requirement for local transport authorities to review the adequacy of the existing network of local services—through proposed new subsection (4B)(a)—and the requirement to identify any gaps in provision, through proposed new subsection (4B)(b). Proposed new subsection (4B)(c) states that what further action the local transport authority intends to take to address the gaps identified must be set out.
Proposed new subsection (4C) would require the authority to publish both the assessment and the resulting plan after the relevant consultation. It is clearly a good idea to identify the scale of opportunity in the local area as well as what is already available. Such good information would inform good future decisions, so I have no hesitation in supporting the amendment.
Amendment 64, which was also tabled by the Liberal Democrats, would require the Secretary of State to provide Parliament with a statement every six months with information on socially necessary services across a county and the number of whole routes cancelled, as well as frequency and days of the week. I am not supportive of it. Although I understand the rationale behind the amendment, and it would be interesting to have that information on a regular basis, it would be truly onerous to require the Secretary of State to provide that every six months for services right across the country. As with all things, when we are trying to design effective government, we have to balance benefit and cost. In my respectful view, such a requirement tips into being simply too onerous.
Assessments are, by their nature, local or regional, and I do not understand the practical utility of national reporting when the people who really need to know the information are in the local transport authority that would be providing the information in the first place. I therefore confirm my support for amendment 66 and my Opposition to amendment 64.
Simon Lightwood
Parliamentary Under-Secretary (Department for Transport)
I thank the hon. Members for Wimbledon, for North Norfolk and for Chesham and Amersham (Sarah Green) for tabling a series of amendments to the Clause. Amendment 66 would ensure that local transport authorities review their current local bus network to identify any gaps. I agree with hon. Members that it is important for local transport authorities to understand and know their networks. However, the desired effect of the amendment is already covered by the Transport Act 2000, which places a requirement on an authority to meet the needs of people living or working in their area. The local transport plan, which must be prepared by a local transport authority, is an important document that establishes the transport needs of local communities. Indeed, the existing measures in the Bill go even further than the 2000 Act by ensuring that members of the enhanced partnership work together to identify key socially necessary services, and to develop a robust plan in case any changes are proposed to them.
I turn to amendment 64. The Department already publishes large amounts of bus data through both the Bus Open Data Service and bus statistics on gov.uk. The Bill provides for even more data collection under clause 24, which specifically ensures that data collected by the traffic commissioner is shared with the Secretary of State. I therefore believe that the amendment is unnecessary. We already deliver a large amount of information to the public that can help them to understand all services operating in their area—not just socially necessary services—and may include many of the details listed in the amendment.
Paul Kohler
Liberal Democrat Spokesperson (Transport)
I would like to press Amendment 66.
Division number 6
Bus Services (No. 2) Bill [Lords] — Clause 14 - Socially necessary local services
Siân Berry
Green Spokesperson (Crime and Policing), Green Spokesperson (Justice), Green Spokesperson (Transport), Green Spokesperson (Work and Pensions), Green Spokesperson (Culture, Media and Sport), Green Spokesperson (Democratic Standards)
I beg to move Amendment 39, in Clause 14, page 9, line 32, after “activities,” insert—
“(iv) health care services, or
(v) schools and other educational institutes,”.
This amendment would include services which enable people to access health or educational services in the definition of ‘socially necessary local services’.
Desmond Swayne
Conservative, New Forest West
With this it will be convenient to discuss Amendment 38, in Clause 14, page 9, line 35, after “activities.” insert—
“(16) A service which was abolished in the 15 years before the day on which the Bus Services (No. 2) Act 2025 was passed may also be considered a socially necessary local service for the purposes of this section and section 138C.”
This amendment would mean that previous bus services could be considered as socially necessary local services.
Siân Berry
Green Spokesperson (Crime and Policing), Green Spokesperson (Justice), Green Spokesperson (Transport), Green Spokesperson (Work and Pensions), Green Spokesperson (Culture, Media and Sport), Green Spokesperson (Democratic Standards)
I am pleased to move an Amendment that both I and Liberal Democrat colleagues had the idea of. The Liberal Democrats have withdrawn their version of the amendment, but we are essentially aiming at the same thing: to be specific in proposed new section 138A of the 2000 Act by specifically naming healthcare services, schools and other educational institutions as activities that we as a Parliament consider to be essential. I believe that that would really help transport planners to focus their efforts on those particularly essential services. It would strengthen the Clause considerably.
In the past, I have worked with many young people who value bus services and feel undervalued when those services are not helping them to get back and forth to school. When they are not able to take part in after-school activities in the same way as their peers at the school whose parents can drive them back and forth, there is a social justice issue that deserves its own bullet point, as part of the clause.
I do not need to tell Members about the importance of public transport access to hospitals and other healthcare services. Later, we will discuss amendments pressing for the timing of older and disabled people’s bus passes to be extended so that they can access healthcare services with their free cards. The actual provision of the services is the absolute bottom line here, and they should be named. There is absolutely no reason for the Government to oppose my amendment.
Amendment 38 was originally proposed by my Green party colleague, Baroness Jones of Moulsecoomb, in the other place. It aims to include clearly in the definition services that have been cancelled. If this aspect of the Bill is to work effectively, it is essential that it works to undo the damage caused by cuts made in bus services, particularly local authority-supported ones since the start of the enormous austerity squeeze on local councils.
The proposed time period of 15 years in amendment 38 is no accident—it goes back to the start of austerity. Many figures show the loss of bus services around the country since the beginning of that period. For example, a Campaign for Better Transport figure shows that from 2012 to the second year of the pandemic, 2021, more than a quarter of all bus services across England, measured in vehicle kilometres, were lost. For the number of regulated services, which is a different measure of service capacity, the loss was 29%.
It will come as no surprise to my colleagues from the east of England that one of the regions with the biggest losses was the eastern region, alongside the north-west of England. The services lost were socially necessary, and they ought to be able to be defined as currently socially necessary, even if they do not exist. I commend both amendments to the Committee.
Jerome Mayhew
Shadow Minister (Transport), Opposition Whip (Commons)
Amendment 39 would add healthcare services, schools and educational facilities to the list of socially necessary local services. The hon. Lady is, of course, right that those are important destinations for bus services—so important that they would without doubt come under the services side of the definition. Since the Clause as drafted refers to enabling
“passengers to access…essential goods and services”, the amendment is otiose.
I understand the political point that the hon. Lady is seeking to make through amendment 38 but, as drafted, nothing could be done with that information under the clause. In fact, the amendment would have a negative effect, because it would simply muddy the waters with historical data without being helpful in establishing the future direction of travel for local transport authorities.
Joe Robertson
Conservative, Isle of Wight East
3:30,
26 June 2025
It is a pleasure to serve under your chairmanship, Sir Desmond. I was planning to say a few words about Amendment 39, but the Shadow Minister has really said it: it not necessary to include healthcare services, schools and other educational institutes in the definition. Of course, I agree with the hon. Member for Brighton Pavilion that those things are important. I can think of dozens of important and socially necessary places where buses might go, but I would not propose to add them all to Clause 14(2)(c), not least because when attempting to make an exhaustive list, it is always possible to leave things out, and there is great scope for argument over issues on the periphery that some people think are important and others do not.
The measure’s wording is broad. A “social necessary local service” is defined as one that allows passengers to access: “essential goods and services”, which is very wide; “economic opportunities (including employment)”, which is very wide; or “social activities”, which is also very wide. Plainly, healthcare services, schools and other educational institutes fall within those definitions, so the amendment is unnecessary. However, I welcome the hon. Lady’s highlighting those things, because healthcare and schools plainly rank very highly.
Paul Kohler
Liberal Democrat Spokesperson (Transport)
The Liberal Democrats strongly support Amendment 39, which was tabled by the hon. Member for Brighton Pavilion. As has been said, it is remarkably similar to, if not the same as, an amendment that we tabled in the House of Lords. It rightly proposes to expand the definition of “socially necessary local service” to include routes that serve healthcare facilities. I recognise the argument that the existing definition already covers them, but we think it is important to explicitly include hospitals, GPs and clinics. Accessing healthcare is a social necessity that should be explicitly recognised in law.
The same is true of education. From conversations with my hon. Friends the Members for Westmorland and Lonsdale (Tim Farron), for Esher and Walton (Monica Harding) and for North East Hampshire (Alex Brewer), to name a few, I know that there are growing concerns about school and college bus routes being cut, leaving students unable to travel independently to their places of learning.
The Government may argue that such services are already included under the definition but, if that is the case, why not make that explicit? Clarifying it in statute would only strengthen the Bill and provide clearer guidance for local authorities.
Simon Lightwood
Parliamentary Under-Secretary (Department for Transport)
Amendment 39 is not necessary as this issue has already been addressed during debates on the Bill in the other place. At the time, my noble Friend the Minister for Rail made a statement on the Floor of the House to the effect that the definition of a socially necessary local service encapsulates access to healthcare and schools as “essential goods and services”. I hope that that reassures the hon. Member for Brighton Pavilion about the Government’s intention. That being said, the Government will produce official guidance for local authorities on the issue of socially necessary local services. That guidance will refer to healthcare services and educational institutions as constituting “essential goods and services”.
Amendment 38 would expand the definition of socially necessary local services to include services that have been abolished in the past 15 years. In addressing it, we should consider the practical issues. A service that has been cancelled in the past 15 years may no longer meet the current needs of the community, which change over time. Furthermore, it is possible that previous services may have been folded into newer and more relevant bus routes. For those reasons, the amendment might not yield the expected beneficial outcomes.
That is by no means a prohibition or limitation on the powers of local transport authorities, however. As local transport authorities continually evaluate the needs of their communities, they still retain the power to consider implementing services along former routes, if they believe that doing so would address the needs of their communities. The amendment is therefore not necessary, so I ask the hon. Member for Brighton Pavilion not to press it.
Siân Berry
Green Spokesperson (Crime and Policing), Green Spokesperson (Justice), Green Spokesperson (Transport), Green Spokesperson (Work and Pensions), Green Spokesperson (Culture, Media and Sport), Green Spokesperson (Democratic Standards)
On a point of clarification, Clause 14 adds proposed new subsection (15)(b) to section 138A of the Transport Act. The measure is quite specific that a current service is envisaged—it refers to a service “if cancelled”. Amendment 38 would respond to that by making sure that recently cancelled services were covered. Such services might have been taken away because operators anticipated the risk that they would be defined as “socially necessary”. Can the Minister reassure us on that point?
Desmond Swayne
Conservative, New Forest West
Does the Minister wish to respond?
Simon Lightwood
Parliamentary Under-Secretary (Department for Transport)
I did not give way, but I appreciate the hon. Member’s additional comments.
Simon Lightwood
Parliamentary Under-Secretary (Department for Transport)
It is fine. I do not believe that the amendments are necessary.
Paul Kohler
Liberal Democrat Spokesperson (Transport)
I beg to move Amendment 54, in Clause 14, page 10, line 26, at end insert—
“(4A) Where a socially necessary route has been identified in accordance with section 138A(15) of the Transport Act 2000, and no alternative operator has implemented the service within a period of six months, the relevant local authority must take reasonable steps to implement a service on the socially necessary route as far as is reasonably practicable.
(4B) Where a local authority has established a socially necessary service in the absence of alternative operators, the local authority must publish a report on the establishment and operability of the service within six months, which should include, but not be limited to—
(a) the scope and nature of the service;
(b) the estimated operating costs of the service and any identified funding gaps;
(c) the impact of the service on local accessibility and transport needs;
(d) a timeline for the operation of the service;
(e) where the local authority is unable to meet the financial burdens of operating the service within six months of establishing that service, a statement specifying the extent of the financial shortfall.
(4C) Where a local authority makes a statement under subsection (4B)(e), the new burdens doctrine applies to the provisions of this section and the Secretary of State must consider providing appropriate financial support to the local authority to ensure the service can be delivered.
(4D) Within six months of the passing of the Bus Services Act 2025, the Secretary of State must publish guidance on what funds will be available for the purposes of subsection (4C).
(4E) A service established under these provisions is a local service operated by a local government bus company as defined by section 22(5).”
This amendment would place a duty on a relevant local authority to implement a socially necessary service should alternative operators fail to do so, with provisions for financial support if needed and the possibility of transferring responsibility to an alternative operator once the service is established.
Desmond Swayne
Conservative, New Forest West
With this it will be convenient to discuss Amendment 74, in Clause 14, page 10, line 34, at end insert—
“(7) The Secretary of State must, within 12 months of the passing of this Act, lay before both Houses of Parliament proposals for a scheme that would guarantee a service for socially necessary services where—
(a) no operator has implemented the service for a period of six months, and
(b) the local transport authority is unable to run the service.
(8) The Secretary of State must, when publishing their proposals for a scheme under this section, also provide guidance on how the scheme would be funded, including the criteria which would be used for assessing qualification for the scheme.
(9) Within a month of producing the proposals, the Secretary of State must ensure that time is made available in both Houses of Parliament for a substantive debate on the proposals.”
This amendment would require the Secretary of State to bring forward proposals for a scheme that would guarantee services for routes identified as socially necessary where no operator has implemented the service and the local transport authority does not have the capacity to do so.
Paul Kohler
Liberal Democrat Spokesperson (Transport)
Amendments 54 and 74 would establish a real safety net for socially necessary routes. Amendment 54 would place a duty on local authorities to step in to deliver a service when no commercial operator will do so, while placing a reciprocal duty on the Government to provide financial support to enable it. Amendment 74 would complement that by requiring the Secretary of State to create a formal funding mechanism for such services. The mechanism would include clear eligibility criteria, ensuring that local authorities could not designate routes as socially necessary arbitrarily, but must demonstrate clear social need. Together, the amendments would ensure that essential routes do not disappear due to market failure. They offer a practical, balanced solution to a growing problem, and I urge the Committee to support them. If we believe that these routes are socially necessary, we must find a mechanism to ensure that they are provided.
Jerome Mayhew
Shadow Minister (Transport), Opposition Whip (Commons)
The Liberal Democrats’ Amendment 54 would place a duty on local transport authorities to identify and then satisfy the need for all—and I stress “all”—socially necessary services, irrespective of supply, under an enhanced partnership. The amendment does not explain how the services would be supplied by the local authority—presumably, there would be a tender process—but it would require the authority to produce a report within six months. That report would identify the need, estimate the costs of provision and associated funding gaps, estimate the impact of a new service
“on local accessibility and transport needs”, provide
“a timeline for the operation of the service”, and specify local funding shortfalls. That measure, if adopted, would be a truly revolutionary departure for the identification of local need and subsequent funding, because it would hand demand assessment to the local authority, but the cost of provision to the Secretary of State. What could possibly go wrong? I genuinely look forward to the Minister supporting the amendment and explaining how he will fund that.
The Liberal Democrats’ amendment 74 would require the Secretary of State to advance proposals within 12 months to
“guarantee a service for socially necessary services”, where that service has been absent for six months and
“the local transport authority is unable to run the service.”
That is a second extraordinary proposal, because it would again place identification of need—according to the highly subjective definition of social necessity—in the hands of the local authority, but would give the Secretary of State a legal duty to supply that assessed need. It envisages the Department for Transport directly running individual routes that have escaped the design of the franchise network or the enhanced partnerships. Presumably, since the Department for Transport has to supply for that need, it will be liable for procuring, right across the country, individual routes that are not part of a wider contractual arrangement. There we have it: the Department of Transport directly running individual routes, spread across the country, independent of wider bus provision. It sounds to me like a recipe for disaster.
Steffan Aquarone
Liberal Democrat, North Norfolk
Amendment 54 is a really important protection for the safe and necessary services that I described. The Shadow Minister’s points perhaps highlight the issue of funding more generally in bus franchising and enhanced partnerships.
The amendment would ensure that steps are taken within six months of identifying a route as socially necessary to ensure that the route actually runs. It would also enable the Government to provide them with support and funding to ensure that the route is available, if the financial burden on the local authority is deemed too great. This is another useful protection for the socially necessary services to ensure that they are not another victim of the funding crisis in local government. I have already made clear how important these services are and why we have to ensure that they are protected.
Looking at the perilous financial position of our county council in Norfolk, I fear that there could come a point where that spectacular fiscal mismanagement means that they cannot afford to keep these services going. In that instance, I do not think that my constituents should be the ones who are punished. The Government should step in to protect their access to all the services and opportunities that a socially necessary service provides.
To conclude, I am pleased that the importance of bus services has been truly recognised in law. I am supportive of the sentiment and much of the drafting of the Clause. However, if we accept the importance of these routes, we should not make a half-baked attempt to protect them. We should ensure that all important services are considered when deciding on socially necessary routes, and that there are strong protections for both these services and our communities that they serve.
Simon Lightwood
Parliamentary Under-Secretary (Department for Transport)
Amendment 54 seeks to establish a process for local transport authorities to implement a socially necessary service where no operator has decided to do so. However, I believe it is unnecessary, because legislation already exists to address that issue. Under section 63(1) of the Transport Act 1985 and section 9A of the Transport Act 1968, local authorities are already under a duty to secure public passenger transport services that they consider appropriate to meet the requirements of the area, and which would not otherwise be met. Clause 14 also sets out that enhanced partnership schemes must include a requirement to investigate alternatives that can be provided if a socially necessary service is cancelled or varied in such a way as to have a materially adverse effect on the ability of passengers to access necessary goods and services.
The amendment also places an obligation on local authorities to fund specific bus services. However, as I set out before, how local authorities choose to spend their funding is a matter for them. I reflect on previous comments from the Liberal Democrats about being all for devolution, but also liking to stipulate exactly how to do it from the national centre. Local authorities are best placed to make decisions on how and where to prioritise their local bus grant. Restricting the range of choices for how an LTA does so would go against the spirit of the Bill, and it is our aim to give more control to local leaders. I have outlined why I believe that the amendment is not needed, and I ask the hon. Member for North Norfolk to withdraw it.
Steffan Aquarone
Liberal Democrat, North Norfolk
I am a little disappointed that the Minister did not address the Shadow Minister’s accusation of passing the financial buck directly to Government in his response. The measure is fundamentally about funding to protect services. If the Minister is relying on sections in previous Acts of Parliament, the interpretation of those sections is not a given without specific reference, which the Bill does not make. I do not share the Minister’s confidence that those obligations will be upheld.
Simon Lightwood
Parliamentary Under-Secretary (Department for Transport)
I think it is sad that the hon. Gentleman does not share my confidence in local areas being able to shape their services.
I now turn to Amendment 74, which is the final non-Government amendment tabled to Clause 14. It seeks to ensure that there is a Government-backed scheme that will guarantee that all socially necessary local services continue to operate. As I am sure I have mentioned before, this Government have reaffirmed our commitment to bus services in the recent spending review by confirming around £900 million each year from 2026-27 to maintain and improve vital bus services. Allocations for that fund will be made through the bus funding formula, which already takes account of local need. The Department is also committed to review the current formula and ensure that it is allocated as fairly as possible. That will take place in due course.
Paul Kohler
Liberal Democrat Spokesperson (Transport)
Is the Minister confident that that money is sufficient to protect socially necessary services?
Simon Lightwood
Parliamentary Under-Secretary (Department for Transport)
3:45,
26 June 2025
Again, it is local areas that are best placed to use the resources given to them. We do not have a magic money tree. I know that the Liberal Democrats have a supply of those, but unfortunately we do not. The Department is also committed to reviewing the formula and ensuring that the money is allocated as fairly as possible. That will take place in due course. Once the allocations are made, it is then for local transport authorities to prioritise their funding according to the needs of their communities. It is right that they make those decisions and Government should not be asked to intervene. I therefore ask the hon. Members to seek to withdraw this Amendment.
Division number 7
Bus Services (No. 2) Bill [Lords] — Clause 14 - Socially necessary local services
Simon Lightwood
Parliamentary Under-Secretary (Department for Transport)
I beg to move Amendment 6, in Clause 14, page 10, line 27, leave out subsections (5) and (6).
This amendment removes the requirement for the Secretary of State to carry out an assessment of the impact of ending the £2 bus fare cap and of the level of employer’s national insurance contributions.
Desmond Swayne
Conservative, New Forest West
With this it will be convenient to discuss Clause stand part.
Simon Lightwood
Parliamentary Under-Secretary (Department for Transport)
Subsections (5) and (6) of Clause 14 were inserted by non-Government amendments in the Lords. This Amendment seeks to remove those subsections. Clause 14(5) places a statutory duty on the Secretary of State to undertake an assessment of the implications of ending the £2 national fare cap on passengers’ ability to access socially necessary local services, as proposed in the Bill. Assessing the impact of the withdrawal of the previous fare cap on specific routes would be pointless while the current cap is in place. At the spending review, the Government took the decision to extend that cap to March 2027. Moreover, in February 2025, the Department published an evaluation of the first 10 months of the £2 fare cap. That showed that the cap delivered low value for money. Work is already under way to undertake a review of the £3 bus fare cap. Therefore, a legislative requirement for further evaluative work is duplicative and unnecessary. That subsection is also impractical. Socially necessary local services are a new measure introduced by this Bill; they were, therefore, not in place at the time of the £2 bus fare cap and could not, therefore, have any measurable effect on it. It will also take some time for local transport authorities to identify socially necessary local services.
Clause 14(6) places a statutory duty on the Secretary of State to undertake an assessment of how the level of employee’s national insurance contributions may impact on the provision of socially necessary bus services. That includes an assessment of how transport services for children with special educational needs and disabilities are affected. That subsection cuts across existing work of the Department for Education, which has committed to reform the special educational needs and disabilities system. It is also impractical because it is seeking to review three months after Royal Assent. Socially necessary local services are likely to take some time to be identified and agreed, making that assessment premature. I have explained why the Government are seeking to remove both subsections. Having explained why the Government are seeking to remove subsections (5) and (6), I turn to the remainder of clause 14.
Clause 14 introduces requirements in relation to socially necessary local services in areas with enhanced partnerships. Enhanced partnerships are statutory partnerships where local transport authorities and bus operators agree on binding goals to improve bus services in their area. This measure will require local transport authorities to identify the services that they consider socially necessary local services as defined in the Bill, and include them as a list in the enhanced partnership plan. Enhanced partnership schemes will need to specify requirements that apply when the operator of a socially necessary local service proposes to cancel or vary the registration of a service in such a way as is likely to have a material adverse effect on the ability of passengers to access essential goods and services, economic opportunities or social activities. Schemes must also require local transport authorities to consider whether any alternative arrangements may be made to mitigate the effects of cancellation or variation.
This will not require additional funding. In practical terms, local transport authorities and bus operators will be incorporating the measure into their established processes. Once the legislation has passed, we will be working with stakeholders to implement the measure. Local transport authorities must vary their enhanced partnership plans and schemes to comply with clause 14 within one year of its coming into force. We will be publishing guidance in due course to help local transport authorities and bus operators with the implementation of the measure.
Luke Myer
Labour, Middlesbrough South and East Cleveland
I support Clause 14 and the Government’s proposed measures. Good decisions depend on good information, and in the East Cleveland part of my Constituency we have seen far too many decisions made in a black hole of information, which has seen many routes disappear over many years. I now have many villages left in isolation.
It has fallen to local campaigners to step up and make the case that such routes are socially necessary, including through protests, rallies and so on, to try to save them. That is exactly what happened in the case of the Stagecoach 1 and 2 in my constituency, which was created as a result of a sustained campaign. However, that route is not sufficient, because it misses out certain villages and does not go down the high street in Brotton, for example. It also misses out several residents, of which one example is a lady called Norma Templeman who I promised I would mention in the House. She lives in North Skelton and is 87 years old. She said a few months ago:
“You have no idea how isolated this makes us golden oldies feel.”
I would never use such language to refer to her, because I think she is full of energy, even if she is 87. It should not fall to an 87-year-old lady to campaign to save and extend routes like the Stagecoach 1 and 2, or the demand-responsive transport service that she benefits from, which, again, runs out of money every few months, and there has to be a sustained campaign to try to save it. The entire model is inefficient.
I hope that the mayor in our region will seek to use the powers in the Bill and introduce a franchising model. So far, he is resistant to do that, so I ask for some clarity from the Minister on devolution—which we covered in the previous debate—with reference to clause 14. The principles set out in the various pieces of legislation on combined authorities, particularly the Local Democracy, Economic Development and Construction Act 2009, set out that the role of a combined authority is to act as it says on the tin: to be a combination of the local constituent member councils and their leaders. We have an odd situation in Teesside wherein the councils and their leaders want to have a franchising system but the mayor is resistant to doing so.
In the House on
“a shift of power from Whitehall and Westminster to a regional or sub-regional body that is far away from communities and the local authority.”—[Official Report,
He said the transfer of power is a good, but it is not the “whole job”, and communities should be able to “take control for themselves”. I hope that that is also the case when it comes to these powers. We should not have a mayor sitting above the community—above even the local authorities, which make up the LTA—and not using the powers and the funding that this Government are giving him to act.
For Norma’s sake, and the many Normas in all my communities and communities across the country, I support the clause and the Bill.
Jerome Mayhew
Shadow Minister (Transport), Opposition Whip (Commons)
With your permission, Sir Desmond, I will deal with this in a slightly different order from that in which the Minister addressed it. I will deal with Clause 14 in toto, and then look at Government Amendment 6, which removes two subsections from the clause.
Clause 14 amends the Transport Act 2000 by requiring local transport authorities to identify and list services in the enhanced partnership area that are “socially necessary local services”—we have already discussed this at some length this afternoon—and then to specify requirements that must be followed if a bus operator of those services wishes to vary or cancel them. Subsection (2) amends section 138A of the Transport Act 2000, which talks about enhanced partnership plans and schemes, and it requires local transport authorities to identify and list socially necessary local services within their enhanced partnership plans—so far, so sensible.
The term is defined in subsection (2)(c), which inserts proposed new subsection (15) into section 138A and provides a definition of “socially necessary local service” as,
“a local service which—
(a) enables passengers to access—
(i) essential goods and services,
(ii) economic opportunities (including employment), or
(iii) social activities, and
(b) if cancelled, is likely to have a material adverse effect on the ability of passengers to access those goods, services, opportunities or activities.”
That is not necessarily a problem, but it is worth noting that this definition is quite subjective in its application. It is not easily measurable what such a service is, nor is it standardised between local authorities. The Minister will say, “Devolution will allow a thousand blossoms to bloom,” and I conceptually agree. However, I wonder whether, if we have different interpretations of the same term—“essential goods and services”—in different parts of the country, that raises a question about how the provisions will be applied across the board.
I understand the desire to devolve assessments to local need, but the determination does, after all, have commercial consequences for operators. As ever, where commercial opportunities are challenged or threatened, that brings with it a risk of legal challenge. That is why I raise the flag with the Minister—I am not going to do anything about it—that this is a potential future pitfall, where different local transport authorities apply the same definition differently.
If the Minister recognises that the definition is subjective, is he concerned about the risk of challenge? The route to formal challenge within an enhanced partnership structure would typically be by judicial review. Is there another form of challenge that the Minister would recognise as part of this process? What guidance will be given to local transport authorities in the assessment process? He referred to some guidance in his earlier responses; I saw him glance towards his officials. I would be grateful for more detail.
I think the issue can be dealt with through guidance, so it would be helpful to understand what form it will take for local transport authorities. Has that already been formulated? Either way, do we have an indication of when the guidance will be published? It is clearly an important document when looking to turn these concepts into practical policies.
Clause 14(2)(a) inserts new paragraph (ba) into section 138A(3) of the Transport Act 2000, requiring local transport authorities to identify which local services in their area are socially necessary services and to list those services in the enhanced partnership plan. Clause 14(2)(b) inserts new paragraph (4A) into section 138A of the 2000 Act, requiring local transport authorities to keep the list of socially necessary services under review and amend it as necessary. The idea here is presumably to ensure that the list of socially necessary local services reflects any sudden network changes in an enhanced partnership area. So far, so good.
Clause 14(3) inserts new subsection (9A) of section 138C of the 2000 Act, which provides that local transport authorities must include requirements in their enhanced partnership scheme
“that apply where the operator of a socially necessary local service…proposes…to cancel a registration under section 6 of the Transport Act 1985 in relation to the service, or…to vary the registration in such a way as is likely to have a material adverse effect on the ability of passengers to access the goods, services, opportunities or activities” that have already been classified as being socially necessary.
The examples given in the explanatory notes to the Bill include a requirement for an extended notice period before changes are made to these services. Presumably, the thinking behind that is that where more vulnerable passengers, or those with greater social need, need to have access by public transport, particularly buses, to schools, hospitals or medical facilities—where there is an enhanced need for a particular route—a greater notice period for any change to the route gives those passengers an opportunity to find alternative means of transport. It is not entirely clear to me what those alternative means might be, but I at least get the principle behind that example.
The explanatory notes also state:
“Inserted subsection (9A) does not allow LTAs to mandate operators continue providing any socially necessary local service.”
My question to the Minister is quite simple: why not? Why is that in subsection (9A)? Can he explain why it is needed? Is there any conceptual prohibition under the enhanced partnership framework? If not, why have the Government not given additional power to local transport authorities to require provision of socially necessary local services? The operator could be compensated for loss-making adjustments. I accept that that would come at a cost, but if we have already accepted that these are socially necessary services and there is a proposal to vary, cancel or change them in some way, that is a power that the Government could give to local transport authorities, but they have chosen not to do so.
I would be interested to hear the Minister’s response to that. There is currently no power for the local transport authority to insist, only a requirement—that is all that I can find, anyway—under proposed new subsection (9A)(b) that an enhanced partnership scheme must require local transport authorities, where they have been notified of a proposed cancellation or variation,
“to consider whether any alternative arrangements may be made so as to mitigate” any adverse effects to passengers caused by the variation or cancellation of the service. I am sure that you will have a seraphic neutrality on this, Sir Desmond, but I might impose on you a view that that is a pretty lily-livered response by the Government.
On the drafting more widely, there are a large number of detailed mandatory requirements for inclusion in every single enhanced partnership agreement across the country, the omission of even a single one of which would open up the local transport authorities to legal challenge, and yet there is very little practical benefit for passengers. There are duties to notify and corresponding requirements to consider various actions or inactions, and the net sum of benefit for passengers—the people I am looking after, if I get my way—is zero. It is just process.
It seems a strange way to go about things that we are we are designing in complexity and getting various organisations to jump through procedural hoops, but the net outcome for the consumer, or the passenger—if it makes people feel better that I call them passengers rather than consumers, I am very happy to do so—is zero. Why are we doing this? The answer is, “Well, we can require it—make it mandatory—and then we are going to get a better outcome for passengers.”
Does the Minister consider that the absence of such a clause would strike at the heart of an enhanced partnership? There are quite a lot of things that he has suggested are suitable for guidance notes, rather than for the Bill, yet here we have something that is eminently suitable for a guidance note but has been dragged out of that remit and put on the face of the Bill. Its practical effect is that if a local transport authority fails to comply with this, in my view, rather otiose clause, it opens itself up to judicial review and legal challenge by operators that, after all, have a commercial interest in this area, and quite right too. Surely it would be more suitable in a guidance note.
What would be the consequences for a local transport authority of omitting to include one of these terms within the body of a contract under its enhanced partnership agreement? Would it leave them open to legal challenge by operators or interested pressure groups? Does the clause encourage lawfare? Members on both sides of the political divide know how frustrated our constituents get when they feel that the Government are powerless in some way—when the Government pull the levers of state and nothing seems to happen because of lawfare, endless challenge and the overly complex nature of legal requirements set in seemingly unremarkable legislation such as this, which is held against Governments trying to make firm decisions and change things.
There is a wider problem—it is not just this Bill—of unintended consequences arising where we bind up the system with legal requirements. We think, “We need to legislate on everything,” so we have put this legal requirement on the face of the Bill. It has no apparent practical benefit for passengers, and yet it unlocks future legal challenge and lawfare. I would be interested in the Minister’s explanation of why this is so important that, rather than just being part of the guidance notes, it must be a legal requirement that every LTA in the country must comply with at their peril. While I am on that theme, has an assessment been undertaken of the impact of the measure? If it has, has it been published, and would the Minister be prepared to provide it?
Clause 14(4) provides that local transport authorities with existing enhanced partnership agreements must vary the existing plan and scheme within one year of the clause’s coming into force—fair enough—and that the EP plan and scheme must satisfy the requirements of the clause. That is eminently sensible. It is a transitional subsection to bring the existing partnerships up to date with the new legislation.
Now, Sir Desmond, we come to the good bit —well, one of the two really good bits of the clause. Subsection (5) requires the Secretary of State to conduct an assessment of the impact of ending the £2 bus fare cap on passengers’ ability to access socially necessary local services. Why is that important? I am going to ask you to cast your mind back to 2023, Sir Desmond. Under section 138A of the Transport Act 2000, there is an obligation on authorities to identify and protect access to socially necessary services—those vital links that communities depend on for healthcare, employment, education and welfare. The Government’s decision to withdraw the £2 bus fare cap and replace it with a 50% increase—[Interruption.] Well, that is what it is. If the limit was £2 and it is raised to £3, what percentage increase is that? It is a 50% increase until 2027-28, and then it will be unlimited under the Government’s current plans.
The Conservative Government brought in the £2 bus fare cap right up until the last general election, and it was a costed manifesto commitment of our party—I anticipate the Minister’s chuntering—to maintain it throughout this Parliament. One of the first things Labour did when it came to power was to get rid of it and increase it by 50% to £3. Now, this is more than a transport issue; it is a test of whether we are serious about levelling up, reducing inequality and protecting the most vulnerable in our society. Without exception, it is those groups that most rely on buses, and the evidence supports that.
The Conservative £2 bus fare cap was introduced in January 2023 as part of the Help for Households scheme. Its aim was to protect passengers from rising costs and prevent a collapse in bus ridership. According to the Department for Transport’s own interim evaluation in 2024, the scheme led to an average increase in bus usage of between 5% and 8%, with some operators reporting more than 10% growth in ridership. The £2 cap achieved a 26% average reduction in the price of single fares, saving passengers up to £1.50 per journey. It was enormously popular: over 90% of surveyed passengers said that the cap influenced their decision to travel by bus and nearly half said that they made new or additional trips that they would not have made otherwise, according to the annual bus statistics for the year ending March 2024.
Who does the Government’s increase of the cap from £2 to £3 really hit? According to the data, it is the poor and, increasingly, women. In 2023, people in the lowest quintile for real income made 67 local bus trips on average, more than any other quintile, while those in the highest quintile made 25, fewer than half that and the least of any income quintile. The policy of increasing the cost by 50% focuses its negative impact on the poorest quintile in society. In 2023, on average, females made more local bus trips than males—44 and 34 trips per person per year, respectively—so this approach also targets women.
For frequent users, such as low-income workers and students, the cap delivered weekly savings of £6 to £10. That is over £400 a year. Without a cap, a standard single fare in areas such as Devon, Northumberland and Cumbria, which are particularly reliant on buses because of the lack of alternative public sector transport, could exceed £4.50 to £5, pricing out thousands of rural residents.
According to the Joseph Rowntree Foundation, the poorest fifth of UK households spend nearly 25% of their disposable income on transport. The actions of this Government have increased that cost by 50%. That is not a de minimis increase; it really matters to people. Even a small fare hike, as the Government would have it described, from £2 to £3, has a disproportionate effect on the poorest and most vulnerable in our society. The Joseph Rowntree Foundation report on poverty states that the cost of essentials such as food, heating and transport have increased significantly since 2021, so the increase adds to the cumulative impact of the other cost of living crisis increases with which we are all intimately familiar as local politicians.
What other areas are adversely affected by the Government’s decision? Let us look at employment and economic inclusion. Nearly two thirds of bus journeys are for commuting or education. That is an important consideration. Buses are the most used mode of public transport in England outside London, especially in deprived regions. We are talking primarily about people going to work and to education, particularly in the most deprived parts of our country. In areas with poor rail coverage, such as County Durham, Cornwall and Lincolnshire, many workers rely exclusively on buses to access employment, yet that is where the Government have chosen to increase fares by 50%.
Let us look at young people and education. Some 72% of students travel to college by bus. Young people aged 17 to 20 are more than twice as likely to travel by bus than people aged 40 to 49, yet they have less financial ability than older people to afford alternative forms of transport. The Government’s policy targets the least advantaged parts of our country and the poorest members of our communities.
About 5% of students and young people admit to missing school or work in the last 12 months because they could not afford transport. That rises to almost one in 10 of those from poorer backgrounds—10% unable to access education or work because of the cost of transport. This really matters. Unemployed young people are having to turn down jobs because they cannot afford associated costs such as clothes, but also transport. A Prince’s Trust study found that the rising cost of living for young people was
“threatening the aspirations of an entire generation”.
It seems like a small rise from £2 to £3, but it is deeply regressive in its impact.
A secondary issue is the environmental impact of the change in policy. The Department for Transport’s final evaluation of the £2 bus fare cap scheme found that the initiative contributed to an estimated 5% increase in bus patronage in England outside London. Overall, 10% of respondents to the wave 2 survey reported taking more journeys by bus since the £2 fare cap was introduced. That is in line with findings from the Transport Focus March 2023 survey, which found that 11% reported higher bus use. If people revert from bus to car, as a percentage surely did, the per mile emissions impact would be significant, though the exact total carbon dioxide increase would depend on journey numbers, vehicle occupancy and trip length, inevitably. That reverses gains made through millions of Government investment in zero emission buses and clean air strategies. This is not the direction of travel we want to move in. We should not be increasing the cost of bus journeys.
Let us look at the public support and the Government’s mandate to make this decision. It was certainly not in their manifesto, unless someone wants to correct me. According to wave 10 of the national travel attitudes survey from June last year, of users who were aware of the bus fare cap, 49% said that they had made additional journeys on the bus that they would not have without the £2 bus fare cap. Of those aware of the cap, 51% had taken the bus instead of other public transport modes, because of the £2 bus fare cap. Of users of the bus in areas where the cap is in place, 37% said that if the £2 bus fare cap was extended to tickets other than adult single fares, they would make more bus journeys. All individuals who completed the NTAS wave 10 survey were asked if they were personally aware of the £2 bus fare cap, and it had cut through: 63% of respondents were aware of it, and 18% were aware of the extension.
For the public, particularly the kind of public that Labour traditionally used to fight for, this is not a luxury or a nice-to-have; it is an enabler right at the heart of our society. It enables young people to get to education, and the unemployed to access work and further education. The impact of the removal of the £2 bus cap is profound. It is not just me who thinks that. The majority in the other place agreed, and a sensible cross-party approach led to the insertion of subsection (5) into clause 14. It would be absolutely the wrong decision, and it would send the wrong message, if the Government were to resile from the obligation simply to undertake an assessment of the impact. What are they afraid of? They have taken the decision; they now need to own it. We need to have responsibility in government for the decisions taken. We all have to take tough decisions in government—only the Liberal Democrats do not have to—but we also have to own them, take responsibility and accept negative consequences. That is what clause 14(5) seeks to do.
Subsection (6) requires a review of how the increase in national insurance contributions from
The decision by the Chancellor of the Exchequer to increase employer’s national insurance contributions across the board is already having a terrible impact on our economy. According to last month’s figures, it has entered a contraction. It obviously reduces the profitability of businesses and their willingness to employ new people. It will disproportionately reduce their willingness to employ part-time members of staff, because of the double whammy of the national insurance contribution increase.
The main issue is not even primarily the increase from 13.8% to 15% as the headline rate for NICs. Much more damaging—profoundly so—is the widening of the net. Previously, below £9,200 of earnings, no employer’s national insurance contributions were required. That figure has been brought right down to £5,000. In a single move, that has scooped up the vast majority of part-time workers. Those workers are particularly women, who fit work around child-rearing activities. This policy makes them less attractive to employ. It brings into national insurance those who are entering the workforce for the first time, and people transitioning out of long-term unemployment. Employers have to consider whether to give them a chance—what is the cost of that employment? This raises the cost of employment exactly where we do not want it.
One area that has seen a particularly bad financial impact, and has resonance with this Bill and clause 14 in particular, is the provision of taxi and bus services for children with special educational needs. The impact of the October 2024 Budget has been described by providers in the sector as catastrophic, if we do nothing about it. SEND operators who provide transport facilities for children with special educational needs to attend education are in danger of becoming insolvent. That is entirely due to not just the headline rate change, but more importantly, because of the morning and afternoon nature of the work for the drivers rather than full-time employment, the grab at the lowest paid. The two taken together amount to a 15.2% increase in the cost of wages. We are putting up wages by 15.2% in order to send that directly to the Government.
These contracts are fixed. They are not cost-plus contracts, but ones that are agreed with local transport authorities—in the case of Norfolk, that is the county council, which has the responsibility for the provision of transport for SEND children. They are stuck. They are in this cleft fork where one arm of the Government is saying, “We have these fixed contracts. You have agreed to provide a service for a fee,” and then another arm of the Government says, “By the way, we are putting up your costs by 15.2%, and we are not doing anything about it—that’s your problem.”
How fair is that? What message does that send to the providers of SEND transport? All employed drivers now fall above the lower threshold of national insurance contributions. All passenger assistance must be employed and will therefore now fall above the lower threshold for national insurance contributions. Hundreds of SEND operators are in that position. They are screaming about it and deeply concerned; the sector is very worried about this.
Let us consider the case study of a large provider of these services, called 24x7 Group, which is the fourth largest taxi operator in the market according to the Plimsoll UK taxi operators list. It solely operates home-to-school educational contracts, so it is a niche provider in the area, but it is the fourth most profitable and the third most valuable taxi company in the country. However, it will trade insolvently on
The Office for National Statistics tells us that there are 8.5 million part-time workers. Every single employer that employs these part-time staff will suffer extraordinary increases due to the national insurance threshold reduction if they pay more than £5,000. It is an extraordinary attack on low-paid and part-time staff.
Desmond Swayne
Conservative, New Forest West
4:15,
26 June 2025
Is the hon. Gentleman straying from the Bill? I am struggling.
Jerome Mayhew
Shadow Minister (Transport), Opposition Whip (Commons)
No, I am pleased to say that I am not, Sir Desmond. Clause 14(6) makes specific reference to this. It was a requirement that was inserted into the Bill by the other place. I will read it to you:
“The Secretary of State must undertake an assessment of the impact of the level of employers’ National Insurance contributions on the provision of socially necessary bus services, including transport services for children with special educational needs and disabilities…and lay it before both Houses of Parliament within 3 months of the day on which this Act is passed.”
As such, this is fairly and squarely in the scope of not just the Bill, but this clause. Government new clause 6 would specifically remove that subsection, so I am setting the scene as to why that is a very bad idea.
We understand the effect, which will be a 15.2% increase in employment costs. If an employee works 780 hours on the minimum wage, they earn around £8,923, which is currently below the minimum threshold. In that instance, following the increase, the employer’s national insurance contribution will go from £0 to £678. That is the additional cost of that employment. Who will pay for that in a SEND contract?
Desmond Swayne
Conservative, New Forest West
We are talking about the impact on the provision of necessary bus services, but you have strayed into taxis.
Jerome Mayhew
Shadow Minister (Transport), Opposition Whip (Commons)
Thank you for that indication, Sir Desmond, but exactly the same arguments that apply to the providers of bus services for a fee also apply to taxis. You can insert the word “bus” whenever I have said “taxis”; exactly the same argument applies for both providers.
The additional cost of employing a part-time worker, such as a bus driver, in a bus company would be £1,303 per employee per annum, so we have a real problem. Bus providers—and others—are being swept up in the net of increased employer national insurance contributions. It is simply a fact that a large number of the school contracts will become unsustainable under the current format, yet no payments have been offered, either as part of this Bill or elsewhere, to compensate local transport authorities, county councils or whichever authorities are responsible for the provision of bus contracts for education and special education needs, even though the actions of this Government are making these contracts unsustainable.
Thousands of these contracts around the country will need to be handed back to local education authorities. Staff will be made redundant, causing a further shortage of drivers for passengers, and thousands more schoolchildren will be left without transport unless there is movement on this. There needs to be movement of one form or another. In an ideal world, bus SEND provision would be excluded from employer national insurance contributions. However, in the absence of that, an alternative form of funding must be provided, if it is still the Government’s desire that provision be made by local authorities for bus services for SEND children.
For this reason, subsection (6), which mandates a review of how the increase in national insurance contributions from
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The shadow cabinet is the name given to the group of senior members from the chief opposition party who would form the cabinet if they were to come to power after a General Election. Each member of the shadow cabinet is allocated responsibility for `shadowing' the work of one of the members of the real cabinet.
The Party Leader assigns specific portfolios according to the ability, seniority and popularity of the shadow cabinet's members.
The house of Lords is the upper chamber of the Houses of Parliament. It is filled with Lords (I.E. Lords, Dukes, Baron/esses, Earls, Marquis/esses, Viscounts, Count/esses, etc.) The Lords consider proposals from the EU or from the commons. They can then reject a bill, accept it, or make amendments. If a bill is rejected, the commons can send it back to the lords for re-discussion. The Lords cannot stop a bill for longer than one parliamentary session. If a bill is accepted, it is forwarded to the Queen, who will then sign it and make it law. If a bill is amended, the amended bill is sent back to the House of Commons for discussion.
The Lords are not elected; they are appointed. Lords can take a "whip", that is to say, they can choose a party to represent. Currently, most Peers are Conservative.
To allow another Member to speak.
Whitehall is a wide road that runs through the heart of Westminster, starting at Trafalgar square and ending at Parliament. It is most often found in Hansard as a way of referring to the combined mass of central government departments, although many of them no longer have buildings on Whitehall itself.
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
In a general election, each constituency chooses an MP to represent it by process of election. The party who wins the most seats in parliament is in power, with its leader becoming Prime Minister and its Ministers/Shadow Ministers making up the new Cabinet. If no party has a majority, this is known as a hung Parliament. The next general election will take place on or before 3rd June 2010.
The term "majority" is used in two ways in Parliament. Firstly a Government cannot operate effectively unless it can command a majority in the House of Commons - a majority means winning more than 50% of the votes in a division. Should a Government fail to hold the confidence of the House, it has to hold a General Election. Secondly the term can also be used in an election, where it refers to the margin which the candidate with the most votes has over the candidate coming second. To win a seat a candidate need only have a majority of 1.