Proposed decision
(i) To ACCEPT Kent’s Bus Service Improvement Plan (BSIP) and Local Authority Bus Service Operators Grant (BSOG) Government funding allocations for financial year 2025/26. This consists of £10,120,289 Revenue and £11,926,302 Capital BSIP and £1,087,788 BSOG funding
(ii) To DELEGATE authority to the Council’s Corporate Director of Growth Environment & Transport, and the Section 151 Officer to formally accept this funding and related terms and conditions through the completion and return of anticipated formal award documentation from Government.
(iii)To DELEGATE authority to the Council’s Corporate Director of Growth Environment & Transport, and the Section 151 Officer to agree and submit Kent’s Delivery Plan in response to the funding offer, working to the principles of Value for Money (VfM) and alignment with Kent’s established 2024 BSIP.
· Reason for the decision
-
To accept the funding, KCC will need to enter into a
formal legal agreement with Department for Transport.
· Background
In March 2021, Kent County Council (KCC) worked in conjunction with the county’s bus operators to submit a Kent Bus Service Improvement Plan (BSIP) to Government. This original BSIP was written in response to the National Bus Strategy (NBS), which set out an ambitious vision for the recovery and subsequent growth of the bus industry across England.
Under Phase 1 of the NBS process (period up to March 2025) KCC was allocated £35.1m to deliver some of the interventions within its BSIP. An initiative programme has subsequently been rolled out utilising this funding which was received in two tranches. See Decision - 23/00027 - BSIP Tranche One for 23/24 funding / programme and Decision - 23/00104 - BSIP Tranche Two for 24/25 funding / programme. In addition to BSIP funding, KCC also receives BSIP+ funding which is also linked to BSIPs and the acceptance of associated conditions attached to both funding awards. The combination ofBSIP and BSIP+ revenue funding ensures that KCC can protect over 50 services that were withdrawn by operators since 2021.
In January 2024, Government set out new BSIP guidance for all Local Transport Authorities (LTAs) requiring the updating of BSIPs. Following Decision - 24/00038 - Kent's 2024 Bus Service Improvement Plan (BSIP), KCC submitted its 2024 BSIP to Government in June 2024, meeting all deadlines. The 2024 BSIP updated on progress made since Kent’s original submission and set out an ambitious initiative programme for the period 2025-29, which could be delivered in the event of further significant and long term external funding for bus.
On 17th November 2024, Government announced that Kent was to be allocated £23,134,379 bus funding for 25/26. This consists of £10,120,289 Revenue and £11,926,302 Capital BSIP and £1,087,788 BSOG funding. The funding will not deliver the full aspirations of Kent’s BSIP but can bring significant benefits to the bus offer in Kent.
Options (other options considered but discarded)
To forego the funding award. This is rejected as the funding represents a significant investment into Kent’s bus offer.
How the proposed decision supports Framing Kent’s Future 2022-2026: (https://www.kent.gov.uk/about-the-council/strategies-and-policies/corporate-policies/our-council-strategy)
The decision supports Priority 2: Infrastructure for communities and the specific commitment to work with our partners through the Kent Enhanced Bus Partnership and with Government to explore sustainable and commercially viable options for providing bus transport to meet people’s needs, making the best use of Bus Service Improvement Plan funding.
How the proposed decision supports: Securing Kent’s Future:democracy.kent.gov.uk/documents/s121235/Securing Kents Future - Budget Recovery Strategy.pdf
The decision does not place any additional financial burden on KCC as initiatives would be delivered with external funding.
Decision type: Key
Reason Key: Expenditure or savings of more than £1m;
Decision status: Recommendations Approved (subject to call-in)
Division affected: (All Division);
Notice of proposed decision first published: 24/12/2024
Decision due: Not before 22nd Jan 2025 by Cabinet Member for Highways and Transport
Reason: To allow 28 day notice period required under Executive Decision regulations
Lead member: Deputy Cabinet Member for Highways and Transportation
Lead director: Haroona Chughtai
Department: Growth, Environment & Transport
Contact: Stephen Pay, Transport Integration Manager Email: Stephen.pay@kent.gov.uk Email: stephen.pay@kent.gov.uk Tel: 01622 605090.
Consultees
Public consultation undertaken or planned:
Kent’s 2021 BSIP was informed heavily by a detailed public engagement exercise. This feedback was again utilised and reflected in Kent’s 2024 BSIP on which a delivery plan for this funding will be based. For the development of the 2024 BSIP additional engagement took place utilising Kent’s Enhanced Partnership meeting structure with Kent’s bus operators and Kent’s district and borough councils. Feedback from Kent’s 2023 and 2024 bus satisfaction surveys has also been utilised.
Cabinet Committee consultation planned:
The proposed decision will be considered at the Environment and Transport Cabinet Committee on 14 January 2025
Financial implications: • The total funding available and deliverable is £23,134,379, broken down as per the figures in this report. • There is no financial contribution required from KCC, however, if projects are not delivered as agreed in the funding agreement, the DFT may require payback of the whole or any part of the grant funding and also hold back funding for other projects. • There is a Change Control process in place at DfT which allows KCC to change or submit requests to change delivery timescales and budgets across initiatives • Acceptance of funding would require KCC to “lock in” funding levels of bus for 25/26 , and 26/27 in the event of an extended delivery plan.
Legal implications: It is anticipated that KCC will in due course receive a Grant Determination letter and MOU between Government and KCC relating to this funding which would be subject to part (ii) of this decision.