Agenda item

During 2025/26 financial year the council will spend over £1.59m supporting subsidised bus services from a combination of council derived revenue budget and external grants.  By 2027/28 the cost is forecast to exceed £2.0m. Continuing to fund the subsidised network in its current form is not sustainable.

This report presents recommended changes to the network informed by a performance review including public consultation.  The recommendation has been developed in partnership with morebus (main enhanced bus partnership operator).

Whilst undertaking the review the council has engaged with the Department for Transport (DfT) Bus Reform Team throughout to ensure that the recommended revised subsidised network is eligible to be funded from the recently announced £2,621,127 Local Authority Bus Grant (LABG) 2026/27 revenue allocation. 

A report setting out the full planned investment of both the revenue and capital LABG allocations shall be presented to Cabinet in March 2026.

The Portfolio Holder for Climate Response, Environment and Energy presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'C' to these Minutes in the Minute Book.

Cabinet was advised that during 2025/26 financial year the council would spend over £1.59m supporting subsidised bus services from a combination of council derived revenue budget and external grants, and that by 2027/28 the cost was forecast to exceed £2.0m.

In relation to this Cabinet was informed that continuing to fund the subsidised network in its current form was not sustainable.

Cabinet was advised that the report presented recommended changes to the network informed by a performance review including public consultation, and that the recommendation had been developed in partnership with morebus (main enhanced bus partnership operator).

Cabinet was informed that whilst undertaking the review the council had engaged with the Department for Transport (DfT) Bus Reform Team throughout to ensure that the recommended revised subsidised network was eligible to be funded from the recently announced £2,621,127 Local Authority Bus Grant (LABG) 2026/27 revenue allocation. 

Further to this Cabinet was advised that a report setting out the full planned investment of both the revenue and capital LABG allocations shall be presented to Cabinet in March 2026.

It is RECOMMENDED that: -

(a)          Cabinet recommends to Council the phased withdrawal of the council bus subsidy budget commencing May 2026 resulting in the service changes set out in Appendix 4; and

(b)          Cabinet recommends to Council the use of Local Authority Bus Grant to fund the revised subsidised bus network as set out in Appendix 4.

Voting: Unanimous

Portfolio Holder: Climate Response, Environment and Energy

Reason

The subsidy of local bus services is non-statutory, although Local Transport Authorities (LTAs) have a duty to assess the transport needs of their area and the impact of bus services being withdrawn, on the elderly, disabled, and people with mobility problems. There is a statutory duty for the council to provide transport services to schools to meet the requirements of the Education Act 1996.

The council has undertaken a comprehensive review of subsidised bus services, including a public consultation, and worked in partnership with the local bus operator to develop the proposed revised subsidised bus network that minimises the impact on passengers/residents as follows:

Evening and Weekend routes: with minimal adjustments these services to be operated commercially.  

Weekday routes: the majority either retained without adjustment, enhanced, or retained with minimal adjustment to make them commercial.

Subsidised School Service Route 40 recommended to be discontinued at end of the 2025/26 academic year due to high cost per passenger journey, few and reducing numbers of passengers and there is an alternative commercial service covering most of the route indicating that the service is not essential.

Subsidised School Service Route 425 recommended to be discontinued at end of 2026/27 academic year due to high cost per passenger journey and there are suitable alternative commercial services that cover most of the route.  Reason for retaining this for a year longer than Route 40 is that the alternative journey is less direct with a need to change bus. Extending the service allows parents time to plan for change.

Subsidised School Service Routes 81 is recommended to be combined with the 46 service to reduce the level of subsidy required.

Routes 744 and 448 subsidies to be retained in their existing form due to them being considered good value for money.