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Administrative timetable

Request from Transport Scotland

Final report

28 March 2024: The SAU has published its report providing advice to Transport Scotland concerning its proposed scheme for the Network Support Grant.

The report sets out our evaluation of Transport Scotlands Assessment of Compliance of its proposed subsidy with the requirements set out in the Subsidy Control Act 2022.

• Final report ( PDF, 255KB) (28.3.24)

15 Feburary 2024: The SAU has accepted a request from Transport Scotland for a report concerning its proposed scheme for the NSG.

This request relates to a Subsidy Scheme of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of Transport Scotlands assessment of whether the subsidy scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the subsidy scheme provided by Transport Scotland

The Network Support Grant (NSG) is a Transport Scotland subsidy scheme, the policy objective of which is to support bus operators running local bus services in Scotland to keep fares lower and the bus network more extensive than would otherwise be the case. Transport Scotland explained that NSG contributes to the provision of bus services that are otherwise not commercially viable and keeps fares lower than would otherwise be the case thus contributing to the maintenance of bus networks across Scotland. It also contributes to the operators of Community Transport services, allowing people who cannot make use of conventional bus services to access local services. This makes public transport more accessible and affordable to a broader population leading to positive social outcomes, including improved connectivity, enhanced mobility and reduced social isolation for residents, particularly in under-served and remote urban and rural communities, having positive impacts on social equity and accessibility.

The NSG scheme has been in place since 1 April 2022 and is awarded on a rolling annual basis. This referral to the SAU relates to operation of the NSG from 1 April 2024 over a five-year period. The total estimated funding package over that term is expected to be around 250 million (about 50 million per year).

The NSG is a discretionary grant paid under section 38 of the Transport (Scotland) Act 2001 by Transport Scotland on behalf of Scottish Ministers. This grant is payable only on a local bus service as defined in section 2 of the Transport Act 1985 or a community transport service possessing a section 19 or section 22 permit. The service(s) must meet the further requirements detailed in the Bus Service Operators Grant (Scotland) Regulations 2002 and guidance as set out by the Office of the Traffic Commissioner. All grantees must comply with the terms and conditions as set out for Scottish Government grants and set out in the NSG guidance document which is reviewed and updated regularly.

The NSG provides financial subsidy support to approximately 300 bus operators, including commercial, community and local transport authorities across Scotland. The NSG is paid as a subsidy of pence per kilometre per bus operated, and is a demand led scheme. The payment rate is currently 14.4 pence per kilometre which maintains the rate which was previously available under the Bus Service Operator Grant which preceded the introduction of NSG. Payments are made based on the annual kilometres run by the bus operator, with payments distributed across the relevant financial year.

Information for third parties

If you wish to comment on matters relevant to the SAUs evaluation of the Assessment of Compliance concerning proposed scheme for the NSG, please send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Please send your submissions to us at: transportscotlandnsg2024@cma.gov.uk

Copying the public authority: schemesandgrants@transport.gov.scot

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with Transport Scotland. The SAU will send a copy of your submission to Transport Scotland together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with Transport Scotland using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Contacts

• CMA press team: 020 3738 6460 or press@cma.gov.uk