Bus Service Operators Grant
Encyclopedia
The Bus Service Operators Grant (formerly Fuel Duty Rebate) is a scheme that refunds some of the Fuel Duty
incurred by operators of registered local bus services
in the United Kingdom
. In 2006 the grant repaid 81% of duty paid on ultra low sulphur diesel fuel, and 100% for bioethanol, biodiesel
and liquefied petroleum gas.
The grant for biofuels will be 58.19ppl from October 2010 and 58.95ppl from 1 January 2011 but will then be paid at the same rate as for diesel from April 2011.
The grant is also available to operators of vehicles with Small Bus Permits (Section 19) when providing services for some groups of passengers:-
Some longer UK coach services, such as the Oxford Tube
claim the grant for part of their routes. The Oxford Tube initially made a stop at Lewknor
on the M40 motorway
in order to qualify for the grant between Oxford and that point. Subsequently it has created additional demand from passengers joining at Lewknor.
. Further legislation was included in section 19 of the Transport Act 1985
. Fuel Duty Rebate (FDR) was available only on complying local bus services. Until 1994 the level of FDR was 100% By 1999 the rebate had been reduced to about 67%. Fuel duty rebate was replaced by Bus Service Operators Grant (BSOG).
Under the Coalition government's
Comprehensive Spending Review
(CSR), the grant will be maintained at current levels until 2012 and then reduced in phases between 2012 and 2015. The total reduction will be 20%.
Hydrocarbon oil duty
Hydrocarbon oil duty is fuel tax levied on some fuels used by road vehicles in the United Kingdom. Between 1993 and 1999 the Government's Fuel Price Escalator led to significant rises in the cost of fuel which led to fuel tax protests in 2000, 2005 and 2007. In May 2008, UK fuel tax rates were one...
incurred by operators of registered local bus services
Public transport bus service
Bus services play a major role in the provision of public transport. These services can take many forms, varying in distance covered and types of vehicle used, and can operate with fixed or flexible routes and schedules...
in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. In 2006 the grant repaid 81% of duty paid on ultra low sulphur diesel fuel, and 100% for bioethanol, biodiesel
Biodiesel
Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol....
and liquefied petroleum gas.
Current rates
Rates as per 1 April 2010.| Fuel | Duty | Rebate |
|---|---|---|
| Diesel (ppl) | 57.19 | 43.21 |
| Biodiesel Biodiesel Biodiesel refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl esters. Biodiesel is typically made by chemically reacting lipids with an alcohol.... (ppl) |
57.19 | 57.19 |
| Bioethanol (ppl) | 57.19 | 57.19 |
| Natural gas used as road fuel (inc biogas) (ppkg) | 23.60 | 23.60 |
| Road fuel gas other than natural gas (e.g. LPG) (ppkg) | 30.53 | 23.60 |
The grant for biofuels will be 58.19ppl from October 2010 and 58.95ppl from 1 January 2011 but will then be paid at the same rate as for diesel from April 2011.
Eligibility
The grant is available for operators of local bus services available for use by the general public which operated on public roads. The definition of 'local' is that stops should not be more than 15 miles apart.The grant is also available to operators of vehicles with Small Bus Permits (Section 19) when providing services for some groups of passengers:-
- People aged 60 or over.
- Persons of all ages, who are physically or mentally impaired and persons assisting them
- People on income support
- People on job seekers allowance
- People of all ages, suffering a degree of social exclusion by virtue of unemployment, poverty or other economic factors, homelessness, geographical remoteness, ill health, or religious or cultural reasons.
- People of all ages, who believe that it would be unsafe for them to use any public passenger transport services.
- Carers or children under 16 years of age accompanying any of the above
Some longer UK coach services, such as the Oxford Tube
Oxford to London coach route
The Oxford to London coach route is an express coach route between Oxford and London along the M40 motorway. The Oxford Tube, which is operated by Stagecoach runs 5 coaches an hour via Lewknor, Hillingdon in west London, Shepherd's Bush and terminates in Buckingham Palace Road, Victoria...
claim the grant for part of their routes. The Oxford Tube initially made a stop at Lewknor
Lewknor
Lewknor is a village and civil parish south of Thame in Oxfordshire. The civil parish includes the village of Postcombe.-Iron Age and Roman periods:...
on the M40 motorway
M40 motorway
The M40 motorway is a motorway in the British transport network that forms a major part of the connection between London and Birmingham. Part of this road forms a section of the unsigned European route E05...
in order to qualify for the grant between Oxford and that point. Subsequently it has created additional demand from passengers joining at Lewknor.
Fuel duty rebate
The Fuel duty rebate was established under section 92 of the Finance Act 1965Finance Act 1965
The Finance Act 1965 is an Act of the Parliament of the United Kingdom which introduced two major new UK taxes. Corporation tax created a separate system for taxing the income of corporations, where previously they had paid income tax in the same way as private individuals. Capital gains tax is...
. Further legislation was included in section 19 of the Transport Act 1985
Transport Act 1985
The Transport Act 1985 was a Act of Parliament in the United Kingdom. It introduced deregulation of bus services throughout Great Britain, although a different system of franchised routes was applied in Greater London. It was introduced by the Conservative government of Margaret Thatcher.Bus...
. Fuel Duty Rebate (FDR) was available only on complying local bus services. Until 1994 the level of FDR was 100% By 1999 the rebate had been reduced to about 67%. Fuel duty rebate was replaced by Bus Service Operators Grant (BSOG).
Bus service Operator Grant
The terms were changed by Section 154 of the Transport Act 2000. In 2002 the 'Bus Service Operators Grant (England) Regulations 2002' extended the grant to cover a wider range of community transport service operators.Under the Coalition government's
United Kingdom coalition government (2010–present)
The ConservativeLiberal Democrat coalition is the present Government of the United Kingdom, formed after the 2010 general election. The Conservative Party and the Liberal Democrats entered into discussions which culminated in the 2010 coalition agreement, setting out a programme for government...
Comprehensive Spending Review
Spending Review (United Kingdom)
A Spending Review or occasionally Comprehensive Spending Review is a governmental process in the United Kingdom carried out by HM Treasury to set firm aditure limits and, through public service agreements, define the key improvements that the public can expect from these resources.Spending Reviews...
(CSR), the grant will be maintained at current levels until 2012 and then reduced in phases between 2012 and 2015. The total reduction will be 20%.
External links
- TravelManager Fuel Duty Rebate Article
- Excise duty refunds to bus operators Debate in parliament 1969