MPs Warn Rural Communities Risk Missing Out from Bus Services Act Reforms

Thousands of passengers could benefit from more reliable bus services after the Government’s Bus Services Act became law on 27 October 2025.
The legislation gives councils new powers to protect vital routes, create their own local bus companies and strengthen passenger safety measures.

However, MPs on the Transport Committee have warned that the Government’s wider response to their Buses Connecting Communities report shows “a lack of ambition” and risks missing an opportunity to improve connectivity across England – particularly in rural and underserved areas.

New Powers For Local Authorities

The Department for Transport says the new law marks a “new era of better buses”, allowing local leaders to take control of their networks and ensure passengers come first.

Key measures include:

• A new legal duty for councils to identify socially necessary routes, with stricter requirements before operators can cancel or alter them.
• The removal of the ban on municipal bus companies, allowing councils to run their own services directly.
• Mandatory training for drivers and staff on how to handle anti-social behaviour and violence against women and girls.
• Future funding commitments for local authorities, to be confirmed “in the coming weeks.”

Transport Secretary Heidi Alexander MP said the Act would “put passengers first, improving access to jobs, education and tourism opportunities which are vital to growing the economy.”

Community transport and rural organisations have welcomed the move. Corinne Pluchino, Chief Executive of ACRE, said it was “an important first step to achieving better rural bus services.”

Read the press release here.

Background: Mps’ Call For Action

The new law follows the Transport Committee’s August 2025 report Buses Connecting Communities, which found that bus journeys outside London had fallen by more than one-fifth in 15 years.

The Committee warned that many small towns and villages now face “transport deserts”, with over 56% of county and unitary council areas lacking adequate provision.

Among its recommendations were:

• a five-year funding settlement for buses, mirroring rail and road investment cycles;
• a rural weighting in funding formulas to reflect higher operating costs; and
• a minimum national service level for all communities.

Read RSN’s coverage of that report here.

Government Response And Continuing Concerns

The Government’s formal response, published alongside the new Act, accepted the value of long-term funding “in principle” but stopped short of committing to a five-year settlement or ring-fenced budgets for socially necessary routes.

It said a revised allocation formula will be confirmed later this year and that rural weighting is “being actively considered”.

However, MPs on the Transport Committee say this leaves too much uncertainty and could see rural areas continue to lose out.

Committee Chair Ruth Cadbury MP commented:

When the Government announced its bus sector reforms it spoke of an ‘overhaul’ and a ‘revolution’. But its approach now looks lacking in ambition, particularly to improve services in rural and underserved communities.

Read the full Government response here.

Read the full Chair comment here.

For rural residents, the Act could mark a turning point – but much depends on how funding is delivered and whether councils have the capacity to act on their new powers.

The Transport Committee cautions that duties to identify “socially necessary routes” must be backed by sufficient financial support, otherwise the legal protection may prove symbolic rather than practical.

The Rural Services Network continues to highlight that one in five rural bus routes have disappeared in recent years. Without sustained funding and rural-proofed formulas, the legislative change may not be enough to rebuild confidence or reverse decline.

The Rural Services Network welcomes the passing of the Bus Services Act as an important step toward better, fairer and more accountable local transport. Empowering councils to protect socially necessary routes and operate their own services reflects the principles set out in our Delivering for All roadmap, ensuring every community has access to essential services and opportunities.

However, this progress must be matched by fair funding and a clear, long-term commitment to rural connectivity. Urban authorities currently spend more than 3.6 times more per head on subsidised routes than rural areas, and over half of small rural towns are at risk of becoming transport deserts. Without a sustainable and rural-proofed funding model, many communities will remain cut off from employment, education and healthcare.

To truly deliver for all, government must ensure rural residents are not left behind by one-size-fits-all funding and metrics. A fair, long-term approach to rural transport will strengthen local economies, unlock opportunity and ensure every community, wherever it is, can thrive.