NAO Report Finds Local Bus Services in Long-Term Decline

The National Audit Office (NAO) has published a critical new report examining the state of local bus services in England, highlighting a long-term decline in services outside London — with particularly concerning implications for rural communities.

According to the report, Local Bus Services in England , passenger numbers remain below pre-pandemic levels, bus routes have been significantly reduced, and the commercial viability of services has weakened. Between 2019-20 and 2023-24, the number of bus journeys in England (excluding London) fell by 9%, while the total distance covered by buses dropped by 15%. These reductions were especially severe on commercial routes in rural areas, where services declined by 21%.

The report concludes that the Department for Transport (DfT) must empower local transport authorities (LTAs) to deliver services that meet local needs — while also ensuring a joined-up national approach to funding and policy.

Key Rural Implications

• Service Withdrawal and Isolation: The NAO highlights a “cycle of decline” in rural and suburban areas — where falling passenger numbers lead to service cuts, further reducing public transport use and increasing car dependency.
• Capacity Constraints: Many county and unitary councils — typically responsible for rural transport — reported having poor capacity to deliver improvements, with transport team vacancy rates around 20–25%.
• Decarbonisation Challenges: While the government has supported over 2,700 zero emission buses, the report warns that rural areas and small operators face particular barriers in transitioning their fleets due to higher upfront costs and infrastructure requirements.
• Funding Complexity: The bus sector has relied on 13 separate DfT grant streams in recent years, often short-term and inconsistent. This has made long-term rural transport planning difficult and undermined efforts to maintain marginal services.
• Need for Strategic Direction: With the 2021 Bus Strategy (Bus Back Better) no longer in effect, the report calls on DfT to urgently clarify its strategic ambitions for bus services — especially in how they support wider goals like economic growth, decarbonisation, and tackling inequality.

The NAO recommends that DfT consolidate bus funding, develop clearer performance metrics, and provide long-term funding certainty to local authorities. It also stresses the need for improved support, advice, and best practice sharing — especially for areas exploring franchising or seeking to protect essential rural routes.

You can read the full NAO report here.

The Rural Services Network will continue to work with members to ensure that rural transport challenges are recognised in national policy — and that communities receive fair support to develop and sustain accessible, reliable local bus services. Everyone deserves access to a transport system that meets their needs and enables them to access employment, training, public services, and social interaction.