The Transport Select Committee has published its latest report, Buses Connecting Communities, outlining a number of recommendations, including for greater regulatory support for Demand Responsive Transport (DRT) services.

The report calls for the Government, within 18 months, to develop “a dedicated policy and regulatory framework” for DRT, “growing and expanding their role in service poorly connected places”.  The report recommends a review of funding streams and guidance on DRT, as well as suggesting access to “nationally procured digital tools” to support DRT schemes. Critically, the report also calls on the Department for Transport to “consider, with the Treasury, reform to the current VAT rules applicable to DRT services”.

Max Sugarman, Chief Executive of ITS UK, who provided oral evidence to the Committee, responded:

“It’s fantastic to see the Transport Select Committee highlight the vital role demand responsive transport plays in supporting communities around the UK. DRT is a critical part of the transport network, offering flexible, on-demand services that act as a vital lifeline for those with often limited public transport options, such as in rural areas.

“Yet, as ITS UK and our members set out in our oral and written evidence, current regulations can be a key barrier to the roll out of DRT, clearly demonstrated by the fact that DRT schemes that use smaller vehicles are subject to VAT, whilst schemes using larger vehicles aren’t.

“So, it’s brilliant to see the Transport Committee stating clearly the need for greater guidance, support and regulatory changes for these services. We strongly urge the Government to consider these recommendations, and work with the sector to make DRT a key part of its bus reforms and plans for integrating the transport network. By doing so, we can ensure DRT continues supporting a greener, safer and seamless transport network for all.”

(Pic: ITS UK)