The Confederation of Passenger Transport (CPT) has warned that the UK Government’s Autumn Budget does not provide sufficient support for bus and coach operators facing rising fuel, employment and operating costs.
The industry body said the Chancellor’s decision to freeze fuel duty would prevent a further increase in costs but would not offset the financial pressures already facing operators.
It also highlighted the impact of increases to the National Minimum Wage and National Living Wage on an industry in which labour accounts for more than half of bus operating costs.
Graham Vidler, Chief Executive of CPT said:We welcome the Chancellor's decision to freeze fuel duty, which will prevent further increases in costs for bus and coach operators already facing considerable financial pressures. However, a freeze alone is not enough to protect the services that millions of people depend on. Rising diesel prices, alongside higher employment and other operating costs, continue to place enormous pressure on operators, threatening the viability of vital routes and services.
Vidler also raised concerns about how existing public transport funding is reaching operators. He said additional funding provided to local transport authorities earlier in the year was welcome, but operators reported that too little was reaching the businesses delivering services. He added that coach operators were particularly overlooked.
CPT is calling on the Government to ensure that public transport funding reaches frontline operators and that additional support is provided where needed.
The organisation acknowledged the importance of fair pay for bus and coach staff but warned that increases in the minimum wage could also drive up wages across the wider workforce. This comes as operators face higher fuel prices and employment taxes. Vidler said additional employment costs needed to be reflected in public transport funding to help operators maintain services while paying staff fairly.
Without further support, CPT warned that passengers and communities could face reduced services and higher fares.
The statement highlights the financial challenges facing the bus and coach sector as operators seek to balance rising costs with the need to maintain accessible and reliable public transport.
