To ask the Secretary of State for Transport, whether his Department is taking steps to support unprofitable bus routes in hard-to-reach rural areas.

Yes. The Department provides around £200 million every year through the Bus Service Operators Grant to help bus operators run services that might otherwise be unprofitable and could lead to cancellation. In addition, £42 million every year goes directly to local authorities to subsidise bus services, including socially and economically necessary services, helping to ensure communities can stay connected and access vital local services.

On 17 May, the Government announced a long-term approach to supporting bus services, backed by £300 million of funding from July 2023 to April 2025. £160 million will be provided to local transport authorities to protect and improve services and fares while £140 million will go directly to operators to help protect essential services across England. This funding will also help support longer routes, such as those in rural areas, where some services are less likely to be commercially sustainable without additional funding.

We are also trialling 16 innovative demand responsive minibus services in 15 local authority areas, supported by the £20 million Rural Mobility Fund (RMF). The RMF provides us with an opportunity to better understand the challenges associated with introducing bookable bus services in rural and suburban settings.