Steer Davies Gleave to advise on CfIT proposals for bus-operator funding reform

Steer Davies Gleave will examine the practical aspects of implementing a policy to replace the existing Bus Services Operations Grant (BSOG) with Incentive per Passenger Payments (IPP) on behalf the Commission for Integrated Transport (CfIT). 

The commission comes following the DfT`s White Paper, Putting Passengers First (2006), which recommended stakeholder consideration of 'the scope for reforming BSOG to tie more directly to bus operator performance and/or environmental outcomes'. In their response to this consultation, CfIT recommended IPP on the grounds that it would encourage operators to improve their services to increase bus use and bring significant benefits to passengers.

Steer Davies Gleave has been commissioned to make recommendations on how passengers could be counted accurately and cost-effectively, payment mechanisms and a 'safety net' for rural services. If implemented, the new system would affect bus services in England outside of London.

Steer Davies Gleave Project Director, Graham Read, said:

'This study has the potential to help bring about significant improvements to English bus services.

'We will identify whether there is a technically sound, practical and cost-effective way forward that is capable of securing wide-spread support; and develop workable recommendations for implementation.'

He continued:

'Steer Davies Gleave`s significant experience of working with bus operators and central and local government and our in-depth knowledge of the policy and technical issues involved will enable us to add value to previous work on this issue.'