Bus Services: Finance

Transport written question – answered on 20th March 2014.

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Photo of Mary Creagh Mary Creagh Shadow Secretary of State for Transport

To ask the Secretary of State for Transport pursuant to the answer of 26 February 2014, Official Report, column 386W, on bus services: finance, if he will provide a breakdown of (a) funding previously paid to bus operators for running services under tender to local authorities, (b) funding previously paid to local authorities for running community transport services in-house, (c) bus service operators' grant funding and top-up payments for those authorities which have been designated as Better Bus Areas for (i) each of the last three years and (ii) the next two years.

Photo of Stephen Hammond Stephen Hammond The Parliamentary Under-Secretary of State for Transport

The sums in question which we will be devolving to local authorities in April each year replace the Bus Service Operators Grant (BSOG) previously paid to (i) bus operators for running services under tender, and (ii) local authorities who run community transport services in-house. The sums to be paid to local authorities each April have been calculated based on the amount of BSOG previously paid for tendered and in-house services in their area in the most recent 12 month period for which records were available.

Our current estimate for the total annual sum to be devolved is £39.2 million for tendered services, and £2.7 million for in-house community transport ones.

The amount of devolved grant funding which we have paid and expect to pay to authorities in the five Better Bus Areas (BBAs) is as follows:

  £ million (rounded)
2012-13 0.5
2013-14 2.5
2014-15 4.9
2015-16 7.3

The first of these BBAs was set up in 2012-13, so no figures are available for earlier years.

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