Use of zero-emission vehicles for local services in England

Clause 37 is a good clause on the mandate for the use of zero emission buses in England. In essence, as it stands, it sets zero emission standards for new buses registered after a certain date. Rather than mandating that that date may not be before 1 January 2030, my amendments 32 and 33 would set it as 1 January 2027. I think that is the appropriate level of ambition for the Bill.

Buses under Transport for London have had that mandate in place since 2021, despite any legal requirement. All buses procured in London since that day have been zero emission capable, and have been deployed without any kind of problem. The investment has been put in, and it was done in part because of the imperative to clean up dirty air. Bus availability is now clearly no obstacle to the amendment being accepted. Double-deckers, single-deckers and all kinds of buses are available to provide services. One constraint, though, is the ability to charge those buses at depots.

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Jerome Mayhew (Conservative)

Her amendment would therefore mean that no existing bus that was not zero emission at the tailpipe could be used from 2027 onwards. Is that really her intention?

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Sian Berry (Green)

As I say, not every single bus in London has yet converted to zero emissions, but for several years now, new buses being purchased have had zero tailpipe emissions. That is not to say that they do not create any air pollution at all; much air pollution comes from brakes and tyre wear, and dust off the roads—there is a lot more air pollution than what comes out of the tailpipe.

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Jerome Mayhew (Conservative)

As has become my custom, I will start with the clause and then look at the amendments. I will be relatively brief, but it is worth highlighting that clause 37 deals with the use of zero emission vehicles for local services in England. It is intended to prevent the use of new non-zero emission buses in local bus services in England, but inevitably there a number of qualifications to the proposed ban.

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14:25 Jerome Mayhew (Conservative)

The second issue here is that through the current drafting, the Government are inevitably picking a winner in terms of technology for low-carbon vehicles, because it focuses on tailpipe emissions and ignores whole-life carbon assessments. That is important; again, we must have a balance of approach here. There is a significant benefit in zero tailpipe emissions, which is primarily about air quality as opposed to carbon and greenhouse gas emissions.

There are currently artificially-produced fuels made using renewable energy that have no net CO 2 emissions over their life cycle. If they are interested, I can explain the basic process to Members: it uses carbon capture plus hydrogen from renewable electricity, synthesised via processes such as the Fischer-Tropsch or methanol synthesis, to create e-diesel, e-kerosene, e-methanol or e-gasoline. The key benefit is that it works with existing engines and fuel infrastructure, and avoids the enormous carbon emissions from wasting existing built infrastructure and machinery.

We need to understand that we have “spent” an enormous amount of carbon and greenhouse gases in constructing the 29,400 vehicles—buses—already out there, many of which have a natural life that could be extended significantly. We do not even need to convert them: we could just pour a synthetic fuel into the same bus, saving all the carbon associated with the manufacturing of new, large-scale hydrogen or electricity buses. At the very least, that would be a significant transitional material to extend the use of existing, or pre-manufactured, vehicles.

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14:27 Rebecca Smith (Conservative)

I want to expand a little on what my hon. Friend was saying about sustainable fuels that are, literally, drop-in fuel alternatives. Anyone watching the British Grand Prix this weekend knows that motor racing is beginning to use such fuel. There is real appetite for manufacturing it in the UK, but regulations get in the way of that happening at the moment. I have secured a meeting to share that with the Minister’s colleague, the Secretary of State for Energy, because it feels like a significant opportunity that would impact not only public transport but, in due course—I appreciate that this is not within the scope of the Bill—general users of vehicles. Ultimately, I think we all agree that we want to get to net zero from the perspective of emissions from vehicles; potentially, however, we need an alternative third way to ensure that the transition can take place.

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14:27 Jerome Mayhew (Conservative)

I will leave it to the Minister to consider amendments 32 and 33, and the same can be said for amendments 78 and 58, tabled by the Liberal Democrats. Finally, therefore, amendment 63 would require the Secretary of State, within six months, to produce a report assessing the adequacy of funding for the replacement of emitting buses with zero emission versions.

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Sarah Hall (Labour)

I will speak to the clause and from my experience of representing an area that already benefits from the use of zero emission vehicles. Warrington’s Own Buses, our municipal bus company, set out an ambition to replace its entire diesel fleet with a fleet of all-electric buses with the aim of reducing carbon emissions in the town and transforming bus travel in the borough, and it has delivered on that. The all-electric, bright yellow buses, including new double-decker buses, were introduced in 2024. I was delighted to attend the launch.

The new zero emission fleet has many benefits. Noise operation is much reduced, minimising noise pollution and creating a more pleasant environment for passengers and passers-by along the routes. The buses are compliant with the strictest emissions regulations, contributing to cleaner air. They are powered by renewable energy and designed to be as green and carbon neutral as possible. We have an electrified depot that ensures smooth operation of the fleet, and Warrington’s Own Buses has overhauled fleet management with the introduction of a new digital system.

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14:31 Steff Aquarone (Liberal Democrat)

Amendment 78 is about technology and is similar to something the hon. Member mentioned. It would qualify buses that have been repowered from running on fossil fuels to zero emission technologies as zero emission vehicles for the purposes of the Bill. “Repowered” means enabled to become zero emission after the date of registration. It involves replacing diesel engines with new, zero emission electric drivetrains mid-life. It is a proven UK innovation that can provide a more affordable and faster route to decarbonisation of our public transport fleet.

For local transport authorities, especially those facing constrained budgets, repowering could present some advantages. First, it can be quicker: companies can convert diesel buses to zero emission in as little as three weeks in their UK facilities. Buses could therefore be back in service quickly, supporting a seamless transition. Secondly, repowering is more cost-effective. A repowered bus can cost less than half the price of a brand-new zero emission vehicle, which could translate to considerable savings for operators and local authorities and allow them to stretch limited resources further. While this route may not work for all buses or local authorities, it is a simple and flexible option to deploy the most cost-effective and timely solution for their fleets. This practical amendment supports British innovation, stretches public funds and accelerates the path to cleaner air and net zero transport, and I urge Members to support it.

Amendment 58 is a small technical change that would clarify that the provisions of proposed new section 151A of the Transport Act 2000 on zero emission vehicles apply to mayoral combined authorities. I would appreciate the Minister providing clarity on that point.

Finally, on amendment 63, while the transition to zero emission buses is right and essential for tacking the climate crisis and reducing air pollution, we must be honest about the pressures that transition will place on local authorities. I take the point that my neighbour, the hon. Member for Broadland and Fakenham, is making, but in this regard, given the subject of clause 37, I will persist with this point. The pressures on local authority budgets and local transport authorities are why we need amendment 63. It would introduce a sensible and measured requirement for the Secretary of State to publish a report assessing how adequate and accessible the central Government funding for zero emission buses has been. It would simply require the Secretary of State to bring forward recommendations on how to improve the system and accelerate the replacement of polluting buses. It is about identifying what works and what does not, and how we can ensure that local transport authorities are properly supported to deliver on one of the Government’s central missions.

Such a report could be helpful for not just local authorities, but the Secretary of State herself when the Treasury inevitably comes knocking asking Departments to justify their spending. Being able to point to a clear evidence-based publicly available report that sets out the scale of funding required to meet our zero emission bus targets will only strengthen the Department’s hand, so I urge the Government to support the amendment.

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14:37 Simon Lightwood (Labour)

I will start my comments on this group by speaking to clause 37 stand part and then move to the amendments. The clause will prevent the use of new non-zero emission buses on local bus services in England. The full transition to zero emission buses is a vital part of the Government’s plan to make buses better for passengers and to realise the benefits of lower running costs, cleaner air and smoother, quieter journeys. Bus operators have begun to invest in new zero emission buses, supported by Government funding initiatives. All stakeholders including bus operators, manufacturers and local transport authorities share the ambition to achieve a zero emission bus fleet more quickly.

However, I recognise that there is a need for Government intervention to accelerate bus decarbonisation by supporting the sector with greater certainty of future demand for zero emission buses. The clause seeks to provide that certainty. However, in recognition of the need to provide time and confidence to manufacturers to shift production, and to operators and local transport authorities to plan their fleet transition, the change to the law will come into effect on a date specified by the Secretary of State in secondary legislation. The clause specifies that the restriction on the use of new non-zero emission buses will not take effect earlier than 2030. It also allows for the Secretary of State to exempt certain types of vehicle or local services from the restriction—for example, to enable the relevant local services reliant on those vehicles to still run.

The Department for Energy Security and Net Zero and Ofgem are also considering what further action could be taken to accelerate connections for strategically important demand customers. The Government are working to ensure that they understand the specific conditions affecting bus operators and continue to communicate directly with bus operators to share best practice. Battery ranges are getting better; independent tests carried out on behalf of the Department on the UK bus test cycle show that ranges for electric vehicles can exceed 500 km, and further for hydrogen. The Government’s independent advisers, the Climate Change Committee, have been clear: buses should transition to zero tailpipe technologies, and biofuels should be focused on sectors harder to decarbonise such as aviation and maritime. The purchase costs of zero emission buses have decreased in real terms, and they have become more efficient to run.

I thank the hon. Member for Brighton Pavilion for tabling amendments 32 and 33 relating to zero emission buses. I appreciate that their intention is to ensure that the English bus fleet is decarbonised as quickly as possible. I can reassure her that the Government share that intention. However, having considered them carefully, the Government cannot support the amendments, and I am happy to set out the reasons why.

We have stated in the Bill that the measure will not come into effect before 1 January 2030. The precise date will be set by statutory instrument. That will provide the industry with reassurance that the measure will not come into effect suddenly or without warning, and allow sufficient notice to be provided, enabling the industry to prepare for the change to zero emission buses. I am concerned about the impact that an earlier date could have on bus operators and the potential adverse consequences for passengers, such as the cost of decarbonising leading to reduced services and increased fares.

I thank the hon. Members for Wimbledon and for North Norfolk for amendment 78. I appreciate its purpose —to encourage the repowering of existing diesel buses, meaning their conversion into zero emission vehicles. I assure them that we support bus repowering—indeed, I opened a plant myself—as a viable and sustainable option to help the transition to zero emission buses in the UK. My Department has introduced the zero emission vehicle repower accreditation scheme to help bus operators to ensure that repowered buses get higher standards of efficiency and emission reduction, invest in their existing fleet and become eligible to claim the zero emission bus incentive in the bus service operators grant.

Amendment 58 tabled by the hon. Members for North Norfolk, for Wimbledon and for South Devon seeks to clarify that the restrictions on the use of non-zero emission buses from a date no earlier than 2030 apply to mayoral combined authorities. I welcome the intention behind the amendment. The Government agree that the restrictions should apply to local bus services in those areas, creating jobs, supporting local economies and accelerating our journey to a zero emission future. That is why, in response to concerns raised in the other place, the Government expanded the measure to apply to all local services in England, including those in London. If a mayoral combined authority operates a relevant service, they will already be subject to the restriction on using non-ZEBs. That means that the measure as it stands in the Bill already fulfils the intention of the amendment.

I thank the hon. Members for North Norfolk, for Wimbledon, for South Devon and for Didcot and Wantage for tabling amendment 63, which would require the Secretary of State to publish a report six months after the Bill receives Royal Assent on the ability of local transport authorities to access funding to decarbonise their fleets. The restriction on the use of new non-ZEBs will not come into effect immediately. That will follow careful consideration of all relevant factors by the Secretary of State, including affordability, and it will be fully debated in Parliament as it will be implemented by affirmative secondary legislation. We state in the Bill that the measure will not come into effect before 1 January 2030. That will give the industry and local transport authorities reassurance that the measure will not come into effect suddenly and without warning, and will allow sufficient notice to be provided, enabling them to prepare for the change to zero emission.

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Bus Services (No. 2) Bill [ Lords ] (Seventh sitting) - 3rd July 2025