Party says reversing Tory cuts would boost communities and help the environment

This article is more than 1 year old

This article is more than 1 year old

Labour would spend £1.3bn a year to reverse recent cuts to local bus services as a means of boosting communities and helping the environment, the party has announced.

The scheme, which Labour said would improve services on 3,000 bus routes around the country, would be funded using revenue raised from vehicle excise duty (VED).

Jeremy Corbyn has raised the issue of poor local bus services at prime minister’s questions, arguing that cuts since 2010 have left many older and vulnerable people isolated, especially in poorer areas, and that such policies lead to greater car use.

The party has already pledged to regulate bus services by putting local services into public ownership and offering free bus travel to under-25s.

The policy was due to be formally announced by the Labour leader and the shadow transport secretary, Andy McDonald, on Thursday in Nottingham, where the Labour council runs the bus fleet.

Under a plan drawn up under the David Cameron government, from the 2020-21 financial year VED revenue will be hypothecated, meaning it is pre-allocated for certain spending rather than, as is true for most tax, added to the general pot.

The Conservative plan was to spend the hypothecated money on road building, but Labour says it would instead set up a sustainable transport fund, part of which would fund bus services.

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The £1.3bn sum a year would reverse what Labour says has been a £645m annual real-terms cut to bus funding since 2010, and invest the same amount on top. Citing government figures, Labour said bus coverage in Britain was at a 30-year low, while outside London the number of passenger journeys had fallen by 10% since 2010.

Corbyn said: “Bus services have been devastated by nine years of austerity. Thousands of routes have been axed, fares have soared and passenger numbers are in freefall. Local services are a lifeline for many, particularly the elderly and those in rural areas. Cuts have had disastrous consequences for our towns and city centres and for air pollution and the environment.

“Bus networks are essential for towns and cities and for tackling rural poverty and isolation, which is why Labour is committed to creating thriving bus networks under public ownership.”

The Conservative MP Marcus Jones, the party’s vice-chair for local government, said Labour’s plans for the VED money would mean “they would have to clobber motorists with tax hikes and slash funding for road repairs to pay for it”.

He said: “Along with their plans to put politicians in Westminster in charge of running local bus services, their pledge to slash funding for roads and their calls to increase fuel duty, this just proves they are not on the side of hardworking families who rely on their vehicles.”