Bus Service Operators' Grant
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.[1]
Current rates
Rates as per 1 April 2012.[2][3]
| Fuel | Duty | Rebate |
|---|---|---|
| Diesel (ppl) | 60.97 | 34.57 |
| Biodiesel (ppl) | 60.97 | 34.57 |
| Bioethanol (ppl) | 60.97 | 34.57 |
| Unleaded Petrol (ppl) | 60.97 | 32.66 |
| Natural gas used as road fuel (inc biogas) (ppkg) | 29.07 | 18.88 |
| Road fuel gas other than natural gas (e.g. LPG) (ppkg) | 37.34 | 18.88 |
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.[4]
The grant is also available to operators of vehicles with Small Bus Permits (Section 19) when providing services for some groups of passengers:-[5]
- 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 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.[6]
History
Fuel duty rebate
The Fuel duty rebate was established under section 92 of the Finance Act 1965.[7] Further legislation was included in section 19 of the Transport Act 1985.[7] Fuel Duty Rebate (FDR) was available only on complying local bus services. Until 1994 the level of FDR was 100%[8] By 1999 the rebate had been reduced to about 67%.[9] Fuel duty rebate was replaced by Bus Service Operators Grant (BSOG).[when?]
Bus service Operator Grant
The terms were changed by Section 154 of the Transport Act 2000.[7] In 2002 the 'Bus Service Operators Grant (England) Regulations 2002' extended the grant to cover a wider range of community transport service operators.[7] 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%.
References
- ^ "Written Answers to Questions - Tuesday 12 December 2006: Buses: Fuels".
- ^ "Fuel Duty Rates" (PDF). HMRC.
- ^ "New BSOG rates from 1st April 2012" (PDF). TfL.
- ^ "Conditions of Eligibility (PSV360) for Bus Service Operators Grant". Department for Transport.
- ^ "BSOG - Bus Service Operators' Grant". GN Consultancy.
- ^ "An investigation into the role express coaches could play in supporting a sustainable economic recovery" (PDF).
- ^ a b c d "Bus Service Operators Grant (BSOG) for community transport". Department for Transport.
- ^ "II. TRENDS IN THE BUS INDUSTRY".
- ^ "The Transport Bill: Part II Local Transport Plans and Buses" (PDF).
External links
- TravelManager Fuel Duty Rebate Article
- Excise duty refunds to bus operators Debate in parliament 1969