According to the report, 45% of councils rate their capacity to maintain or improve services as poor or very poor. Increasing traffic congestion has also added to passenger dissatisfaction.

Funding Gaps and Unmet Goals
While Boris Johnson’s administration has promised £3 billion to upgrade the bus network, the NAO said a significant proportion of the funds had been siphoned off to finance emergency Covid subsidies. Some other improvements intended, including electric bus fleets, have not yet arrived.

The report also underlined the fact that half of all bus operators’ income in 2023–24 was in the form of public subsidy, £1.8 billion. And the existence of many routes, especially in rural and suburban areas, is in doubt. The NAO warned of a possible “cycle of decline,” where service cuts push more people into using private cars, further eroding demand for public transport.

Future of Bus Reform
A new bus services bill, to give local authorities greater control, including the option to franchise services, is promised under the Labour government. However the NAO cautioned that franchising is expensive and administrative heavy for many councils.

Gareth Davies, head of the NAO, called on the DfT to work with local bodies to ensure funding was used as effectively as possible. The Confederation of Passenger Transport hit back at the NAO’s perspective, as it highlighted a 15% increase in passenger numbers in the last year and 83% of passengers being satisfied.

A DfT spokesperson replied: “After years of decline, we are investing a record £1 billion to improve the reliability and frequency of bus services throughout the country.”