Community Bus Fund - Fairer Duty Scotland Summary

Title of policy, strategy or programme

The Community Bus Fund

Summary of aims and expected outcomes of strategy, proposal, programme or policy

The Bute House Agreement and Programme for Government 2022-23 included a commitment to establish a ‘Community Bus Fund to support local transport authorities to improve local public transport in their areas. This fund will support local authorities to explore the full range of options set out in the Transport (Scotland) Act 2019 (“the 2019 Act”), including local authority run bus services.’ The fund is intended to run for the remainder of this Parliamentary term.

The 2019 Act builds on and improves the existing regulatory landscape for Scotland’s bus services with the principal aim of reversing the long-standing decline in bus patronage to deliver important benefits which include sustainable economic development, carbon emission reductions and enhanced social cohesion. Bus services are a cornerstone of our economy with the sector accounting for 79% of all public transport journeys in 2021-22, and their role will become even more important as we face the increasingly pressing reality of the climate emergency.

The new provisions under the 2019 Act cover partnership working, local franchising, the power for Local Transport Authorities (LTAs) to run their own bus services and improvements to the information available to LTAs when local services are varied or cancelled by operators. The powers will give LTAs the tools and flexibility they need to deliver improved bus services tailored to the specific needs of their areas. Implementing the Act will make bus services more available, accessible and potentially affordable for all of society.

The Community Bus Fund (CBF) aims to support this reform by enabling local authorities to complete the preparatory work required for the Act powers, as well as broader innovations and improvements to local public transport with a focus on rural deprived areas where lower population density means bus services can be less commercially viable. The fund will be administered by local authorities, who will conduct their own assessments in relation to the Fairer Scotland Duty for any spend.

The capital element in 2023-24 will be distributed to all local authorities based on levels of transport poverty. Transport Poverty is defined as being in circumstances where transport: is not affordable; is not available or suitable; doesn’t enable access to bus services in a reasonable time with reasonable ease; in conditions that make travel dangerous, unsafe or unhealthy. This reflects the specific challenges rural and Island areas face in bus provision, particularly for those in poverty as without access to an alternative form of transport, households may be forced into the expense of car ownership, further increasing levels of poverty and rural deprivation in these areas.

The delivery of these benefits aligns with the Scottish Government’s National Transport Strategy 2 (NTS2). Published in February 2020, the NTS2 seeks to reduce inequalities and advance equality of opportunity and outcome, take climate action to make travel choices that minimise the long-term impacts on our climate, develop a transport system that will help deliver sustainable and inclusive economic growth and which will be safe and enable a healthy, active and fit nation.

The bus provisions within the 2019 Act also align with the Scottish Government’s 2021 Climate Change Plan Update which reflects new and ambitious targets to reduce emissions by 75% by 2030 and achieve net zero by 2045 whilst envisaging a reduction in private car mileage of 20% by 2032.

Summary of evidence

The Fairer Scotland Duty set out in Part 1 of the Equality Act 2010 requires due regard is given to reducing inequalities of outcome caused by socio-economic disadvantage, when making strategic decisions.

In relation to bus services, the objective of the 2019 Act is to give local authorities the flexibility to pursue partnership working, local franchising, or running their own buses – allowing local authorities to better respond to local needs. It is anticipated that the effects of the 2019 Act will be positive on those from lower socio-economic backgrounds if bus services are improved, as it will help to narrow inequality in ability to travel. In developing options for the 2019 Act, London was considered as a successful example of franchising, with Lothian Buses seen as a positive example of local authority run services. The Bus Service Improvement Partnerships (BSIPs) considered the English 2017 Act and impacts to amend and improve upon existing legislation, and reduce complexity for local authorities. The success of each option was highly dependent on local factors, therefore it was determined that a range of options would be more appropriate. In addition, local authorities had requested more flexible options to suit local needs.

Bus is the most widely used form of public transport, accounting for 79% of Scotland’s public transport journeys in 2021/22. Amongst employed adults, buses are more frequently used by younger people, those on lower incomes and ethnic groups other than White Scottish and White British. 24% of adults earning less than £15,000 per year travelled to work by bus compared to 8% of those earning between £30-40,000 per year. Individuals in lower-income households and more deprived areas rely more on bus services. For example, individuals living in the 20% most deprived areas are more than twice as likely to use the bus every day than those living in the 4th deprivation quintile (13% vs 5%).

In relation to the provisions on partnerships, franchising and local transport authority run bus services, the 2019 Act provides local authorities with a range of options but is not prescriptive which option should be used. Instead the implementation of the provisions will vary according to each authority which will take decisions in accordance with their individual policies. The Community Bus Fund (CBF) aims to support local authorities to complete the preparatory work required for the 2019 Act powers, as well as broader innovations and improvements to local public transport with a focus on rural deprived areas, based on levels of transport poverty. While we anticipate that the provisions of the Act and CBF will have a positive impact it will ultimately depend on the actions and proposals of each local transport authority.

The lower population density of more rural areas and Island communities mean there are fewer commercially viable routes, greater numbers of LTA-subsidised services, and connectivity challenges. Rural and Island inhabitants are less likely to have access to a frequent bus service. They are more likely to suffer from lack of commercial viability along with bus market failure and would benefit most from reform to provide improved bus provision and connectivity. For those in poverty without access to an alternative form of transport, households may be forced into car ownership, or lose out on travel and the opportunities it affords in terms of health, employment, education and family support, further increasing levels of poverty and rural deprivation in these areas. The research carried out by The Poverty Alliance for the paper on Transport and Child Poverty: Beyond the pandemic suggested cost was a significant factor in rural areas due to longer journeys, along with the availability and frequency of public transport and limited alternative transport options.

Ahead of the introduction of the 2019 Transport Bill, a full public consultation was conducted in 2017, with a further consultation held in 2021 on implementing part 3 of the Transport (Scotland) Act 2019. Responses were received from members of the public, local authorities, transport operators, RTPs, public bodies and other organisations, including Trade Unions and Get Glasgow Moving whose objectives include addressing inequality in society. Throughout consultation responses, a number of respondents – primarily trade unions / campaigning organisations including Get Glasgow Moving, third sector organisations, political parties and individuals – noted their opposition to Bus Service Improvement Partnerships (BSIPs) and voiced their support for a return to publicly owned bus services. While there were some comments about a need for consistency in bus service provision across Scotland, there were also some comments about a need for flexibility to accommodate local and regional circumstances. While many of these respondents were critical of existing bus services across Scotland, there were a number of positive references to Lothian Buses, which is seen to be a good example of a municipal bus company offering a high quality service.

The recommendations from the report on Transport Poverty by the Poverty and Inequality Commission were also considered in ensuring local authorities have the required tools to allow them to improve local transport according to transport needs, particularly for those on the lowest incomes.

Summary of assessment findings

The Act, regulations and guidance, dependant on the implementation of the toolkit, will potentially affect all bus users and potential bus users, as well as transport authorities (including Local Authorities and Regional Transport Partnerships) and operators. The evidence suggests that those from a lower socio-economic background are more likely to use bus, therefore any improvements to bus services are likely to have a more positive impact and support the reduction in inequalities.

The Act and regulations involve:

• Bus Services Improvement Partnerships - Potential to improve working between transport authorities and operators resulting in direct and indirect improvements to services for bus users.
• Franchising - Increase viability of options for transport authorities to introduce more coordination and control over services in an area, which used appropriately could result in improved services for bus users.
• Transport authority run buses - May increase services available to bus users, particularly in areas where there are no commercial services operating and limited competition to provide subsidised services.
• Improved information - Making information available for the public will make it easier for existing and potential bus users to find out about services in their area and for operators and transport authorities to identify problems, for example poor reliability due to congestion. Data on de-registered services will benefit transport authorities when considering whether to provide alternative services.

Although the act and supporting regulations will provide local transport authorities with a toolkit of options to improve bus services in their areas, we recognise that not all will be appropriate in every situation. However, there is a risk that options which could benefit an area are not used due to a number of issues including:

1. lack of prioritisation,
2. budgetary constraints,
3. lack of resources and/or
4. perceived complexity of requirements.

There is also a risk that options used inappropriately or only partially completed could have an adverse impact on services within an area.

To address these risks, a consultation was undertaken in 2021 with low income groups represented by organisations such as Unions and Get Glasgow Moving. Engagement with stakeholders has continued whilst the Act has been developed. Guidance will also be produced to support local authorities in implementing the options.

In addition, the funding through the Community Bus Fund will support and encourage local authorities to consider which options would be most appropriate for the local area.

To further reduce inequalities of outcome, the Community Bus Fund is targeted towards areas of rural deprivation. We considered using rurality and SIMD as indicators, however this favours urban areas which although they have higher levels of deprivation and rates of poverty also benefit from improved public transport connectivity due to higher population densities making commercial services more viable. Therefore we recommend transport poverty is used as an indicator, as it better addresses the inequalities of outcomes related to transport. Transport Poverty is defined as; not affordable; not available or suitable; doesn’t enable access in a reasonable time with reasonable ease; dangerous, unsafe or unhealthy travel conditions. This reflects the specific challenges rural and Island areas face in bus provision, particularly for those in poverty as without access to an alternative form of transport, households may be forced into car ownership, or lose out on travel and the opportunities it affords in terms of health, employment, education and family support, further increasing levels of poverty and rural deprivation in these areas.