Consultation on reform of BSOG

[WatcherZero]

http://www.dft.gov.uk/consultations/dft-2012-39/

In March 2012, the Government published Green Light for Better Buses in which it set out a series of reforms to improve local bus subsidy arrangements and regulations in England outside London. The proposals have been carefully formulated to attract more people onto buses, to ensure better value for the taxpayer and to give local transport authorities more influence over their bus networks. This consultation paper seeks views on how the subsidy proposals set out in Green Light for Better Buses are to be implemented. In particular the consultation covers how changes to the payment of Bus Service Operators Grant (BSOG) are to be implemented. BSOG is the main form of bus subsidy funded by the Government and is paid at present to the companies which operate bus services. The reforms to BSOG set out in Green Light for Better Buses include:
1.devolution of BSOG to local authorities where the funding relates to services they support – i.e. tendered services – to allow decisions to be taken locally on how it should be spent;
2.creation of a new local government fund – Better Bus Areas – to encourage local transport authorities and bus companies to work closely together to improve services and boost passenger numbers;
3.devolution to Transport for London or the Greater London Authority of the BSOG paid to London bus operators who operate services under contract to TfL; and
4.tightening the existing rules defining which bus services can claim BSOG, so that the funding is put to the best possible use.

http://assets.dft.gov.uk/consultations/dft-2012-39/consultation-document.pdf

http://assets.dft.gov.uk/consultations/dft-2012-39/impact-assessment.pdf

http://assets.dft.gov.uk/consultations/dft-2012-39/consultation-response-form.pdf

Basically the Government thinks the change will lead to either a 4% increase in bus fares or a 6% reduction in services but it has a NPV benefit to the Government of approx 1.7 so their happy. Much of the saving for the Government is assumed to come from local authorities being tougher on emissions when giving out subsidy and requiring less polluting vehicles so reducing carbon emissions.

 

[34D]

Basically the Government thinks the change will lead to either a 4% increase in bus fares or a 6% reduction in services but it has a NPV benefit to the Government of approx 1.7 so their happy. Much of the saving for the Government is assumed to come from local authorities being tougher on emissions when giving out subsidy and requiring less polluting vehicles so reducing carbon emissions.

Thank you for a most useful post.

 

[radamfi]

I don't really see the difference for tendered bus services outside London and for all buses within London as it just means that tender prices will increase by the amount lost in BSOG.

AFAICS Better Bus Areas will only happen in areas where there is a strong partnership between the local authority and operators. In other words, where the operators agree to it. The key paragraph is:

4.55. We do not intend to give one or more bus operators in a proposed BBA an automatic right to veto the creation of a Better Bus Area. However, DfT will consider the views, both positive or negative, of all relevant bus operators, and assess the strength of the partnership approach, before the BBA decisions are taken.

To me, that indicates that BBAs will only happen if the local authority can demonstrate to the operators in its area that they will implement comprehensive infrastructure improvements, such as bus lanes, that will mean that the operator would increase their revenue or reduce their costs by a sufficient amount that will outweigh the lost BSOG.