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Bus grant cut could lead to ‘car dependence trap’

Britain’s local bus networks are at risk from ‘Beeching-style cuts’ if the Government withdraws the only direct national funding as part of its spending review, a coalition of pro-public transport groups warned today.

Local authorities, bus operators, transport campaigners and unions have written to Transport Secretary Philip Hammond to warn of big fare rises, services cuts and job losses if the Bus Service Operators Grant (BSOG) is scrapped. The decision would also lead to an increase in the car dependent population, worsening congestion and pollution.

The consortium fear a decision could be made in weeks to cut BSOG, formerly known as the Fuel Duty Rebate (FDR), which rebates bus operators for the fuel duty they pay in running local registered bus services. It also covers many rural, school and socially important services.

Letters have been sent to all 533 MPs in England, while an Early Day Motion supporting retention of BSOG for the most widely used form of public transport has also been laid down in Parliament.

Stephen Joseph, Executive Director, Campaign for Better Transport, a co-signatory to the letter, said: “Scrapping BSOG could do for Britain’s buses today what Beeching did for the UK rail network in the 1960s. In many areas, it could tip buses into a spiral of decline with fares rises, falling patronage and service cuts, all with impacts on some of the poorest in society. It would trap people into dependence on cars and add to local traffic problems. Pensioners could find themselves with free bus passes but no buses on which to use them.“

Shaun Spiers, Chief Executive at the Campaign to Protect Rural England (CPRE), said: "Cutting the bus grant may look like a quick way to slash spending, but the social, environmental and economic costs to the countryside would be huge in the long term. Those unable to drive could be forced to move out of rural areas or face isolation, while those living car-free in towns may be cut off from the countryside. Closed pubs and post offices would be joined by derelict bus shelters, the final straw for the vibrancy of many villages."

The letter to the Government and MPs warns that scrapping BSOG would have damaging and wide-ranging consequences for local communities, public transport services, low-income groups, the UK economy and the environment, including a 10 per cent rise in fares overnight, with a similar 10 per cent cut in commercial bus services. Communities would be damaged, as the sharp rise in the cost of bus travel and cuts in bus networks would increase car use, worsen congestion, damage the environment and lead to higher costs for businesses.

Bus passengers, many of whom are on low incomes, already pay more fuel tax than wealthier air and rail passengers. While buses still pay a significant amount of fuel tax, aviation pays none. BSOG is equivalent to a £437m a year investment in buses. In contrast, aviation gets a £6.5bn a year tax break by paying no fuel duty.

A previous study for the Government by the Commission for Integrated Transport found that every £1 invested in BSOG provided between £3 and £5 of wider benefits.

Co-signatories to the letter to politicians include the Campaign for Better Transport (CBT), Confederation of Passenger Transport UK, Greenpeace UK, Friends of the Earth, Campaign to Protect Rural England, UNITE, Community Transport Association, Guide Dogs and UNISON.

According to the consortium, buses provide low-cost, low-carbon transport. They are the safest, greenest and most used form of public transport, with 5 billion passenger journeys a year, and are vital for the 25 per cent of Britons who don’t have a car.

See also

Faye Sunderland, July 12, 2010
Filed under: Green credentials

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