Bus subsidy reforms unveiled
Under existing arrangements, the Bus Service Operators Grant (BSOG) for both commercial and non-commercial bus routes is administered centrally by the Department for Transport. The BSOG is the partial refund on fuel duty received from the government by operators of local bus services in England.
From January 2014, BSOG funding for non-commercial routes – those which could not economically operate without support – will be devolved to local authorities. Government money currently paid to operators for these services will be paid to the local authority. As operators will face higher costs to operate the service, local authorities will need to compensate the operator through adjusted contract payments. Read more details here.