36-532: The Bus Service Operators Grant ( BSOG , and 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 Fuel duty rebate was established under section 92 of
72-419: A fuel duty rebate to local bus service operators (but not for express coach which receives no rebate). As of April 2010 the rebate was £0.43 for diesel, £0.2360 for road fuel gas other than natural gas and 100% for biodiesel and bioethanol. Additional rebates are available for increasing fuel efficiency, low carbon emission vehicles and equipping vehicles with Smartcards and GPS tracking equipment. In 2001 it
108-554: A UK gallon of fuel to about 1s 2½d (equivalent to £4.6 in 2023), the Government introduced a tax of 4d (£0.017) per UK gallon bringing the cost of a UK gallon of petrol to 1s 6¾d (equivalent to £5.94 in 2023). In the 1993 Budget during the Major ministry , Norman Lamont introduced a 10p rise and also a Fuel Price Escalator whereby the cost of fuel would be increased annually by 3 per cent above inflation in future years;
144-494: A barrel. Average diesel prices are currently £1.03 per litre. The minimum petrol price available is 99.7p and £1.03 for diesel. The minimum across Europe is 87.9. Avtur receives a full rebate of fuel duty when used as fuel for an aircraft, excluding private aircraft. Avtur for commercial flights within the UK and all private flights is normally liable to VAT. There is no VAT charged on avtur for international flights in accordance with
180-611: A time of considerable change in government transport policy, and followed major UK road protests , including the M11 link road protest and the protest at Twyford Down . The escalator was increased in 6p per year in 1997 by Gordon Brown , chancellor for the new Blair ministry . The escalator was effectively cancelled by the Brown ministry follow severe disruption caused by the fuel tax protests in 2000 . Since that time more cautious increases have been applied. A planned 3.02p/litre rise which
216-556: Is 99.7p and £1.03 for diesel. The minimum across Europe is 87.9. Avtur receives a full rebate of fuel duty when used as fuel for an aircraft, excluding private aircraft. Avtur for commercial flights within the UK and all private flights is normally liable to VAT. There is no VAT charged on avtur for international flights in accordance with the Convention on International Civil Aviation , although commercial operators do pay Air Passenger Duty . Avgas , used by some smaller planes,
252-456: Is raised from the VAT on the duty, contributing some 3.5 per cent of total UK tax revenues . The Fuel Price Escalator , which was introduced in 1993 was abandoned after the disruptive fuel tax protests of 2000 . The Finance Act 1910 (the so-called People's Budget ) introduced a petrol duty in the UK for the first time. From April 1909 the rate was set at 3 d (£0.013) per UK gallon , bringing
288-468: Is still as a rebate paid at a set rate per litre of fuel. 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 Comprehensive Spending Review (CSR) the grant was kept at 81% until April 2012, when reduced by 20%. The current payment rate is the lowest ever percentage since
324-531: Is that stops should not be more than 15 miles apart. The grant is paid to local-authority supported services, and to unsupported commercially-sustained services that comply with the eligibility criteria. The bus industry also receives reimbursement for carriage of holders of valid bus passes, which is also funded by the local authority. 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
360-411: The Convention on International Civil Aviation , although commercial operators do pay Air Passenger Duty . Avgas , used by some smaller planes, was taxed at half the rate of road petrol for all users until October 2008, when the reduced rate was limited to commercial flying. A minority of light planes use standard road petrol and pay tax at the normal rate. The Bus Service Operators Grant provides
396-543: The Finance Act 1965 . 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%. 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'
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#1732802532029432-675: 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. The terms were changed by Section 154 of the Transport Act 2000. Fuel duty rebate was renamed the Bus Service Operators' Grant (BSOG), even though it
468-596: The Petroleum Revenue Tax was reduced in the same budget and later abolished. Kenneth Clarke , the new chancellor, increased the escalator to 5p in November of that year. These increases were introduced at a time of considerable change in government transport policy, and followed major UK road protests , including the M11 link road protest and the protest at Twyford Down . The escalator was increased in 6p per year in 1997 by Gordon Brown , chancellor for
504-438: The United Kingdom ; with exceptions for local bus services , some farm and construction vehicles and aviation , which pay reduced or no fuel duty. The government revenue from fuel duty was £27.1 billion for the financial year 2014–2015. This is an increase in cash terms in comparison to 2013-2014 but now only represents 1.5% of GDP. This is in contrast to the start of the 2000s when it was 2.3% of GDP. A further £3.9 billion
540-526: The price of oil , rising from 55.9% at 65p per litre untaxed to 61.4% at 50p per litre (2012 figures). The UK average petrol price as of 11 January 2016 is £1.01 per litre. This is slightly above the European average but is 30p lower than the peak in 2014. With declining oil prices, it has been suggested petrol could fall to 86.9p per litre if oil prices fall to $ 10 a barrel. Average diesel prices are currently £1.03 per litre. The minimum petrol price available
576-413: The tax disc based on horsepower, after which the cost of petrol was about 4s (equivalent to £11.61 in 2023) per UK gallon. In 1928, following market reductions in the cost of a UK gallon of fuel to about 1s 2½d (equivalent to £4.6 in 2023), the Government introduced a tax of 4d (£0.017) per UK gallon bringing the cost of a UK gallon of petrol to 1s 6¾d (equivalent to £5.94 in 2023). In
612-425: The 1993 Budget during the Major ministry , Norman Lamont introduced a 10p rise and also a Fuel Price Escalator whereby the cost of fuel would be increased annually by 3 per cent above inflation in future years; the Petroleum Revenue Tax was reduced in the same budget and later abolished. Kenneth Clarke , the new chancellor, increased the escalator to 5p in November of that year. These increases were introduced at
648-737: The Autumn Statement in November, it became clear that BSOG would be retained. BSOG rates paid to operators in England from 2014 onwards. In April 2022, an additional zero-emission bus incentive of 22 pence/kilometre was introduced. From 1 January 2014, the Department for Transport (DfT) has paid an annual grant to eligible local authorities in England to replace the Bus Service Operators’ Grant (BSOG) for tendered services. Until September 2018, this had been paid direct to
684-567: The bus operators. BSOG was devolved and has been administered separately in Scotland since 1 April 2010. The link with fuel duty was formally severed from this date with payments being calculated on live service-kilometres run, not fuel consumption. This slightly favoured rural bus routes whose fuel efficiency is slightly higher than urban buses which have more stop-start driving. This also disincentivised less fuel efficient buses and 'dead milage' for bus movements between an operator's depots. BSOG
720-488: The current rate is then added to the total price. The taxation percentage of forecourt prices varies according to the price of oil , rising from 55.9% at 65p per litre untaxed to 61.4% at 50p per litre (2012 figures). The UK average petrol price as of 11 January 2016 is £1.01 per litre. This is slightly above the European average but is 30p lower than the peak in 2014. With declining oil prices, it has been suggested petrol could fall to 86.9p per litre if oil prices fall to $ 10
756-516: The firm KPMG on behalf of the group Greener Journeys found that for £1 spent on BSOG, between £2.50 and £3.50 is generated in benefits, including wider economic and social impacts. In 2015, again there were fears that BSOG would be cut as part of the Government Spending Review, which combined with cuts to local authority funding, would have threatened many bus routes. Campaign and industry groups campaigned against this, and in
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#1732802532029792-596: The new Blair ministry . The escalator was effectively cancelled by the Brown ministry follow severe disruption caused by the fuel tax protests in 2000 . Since that time more cautious increases have been applied. A planned 3.02p/litre rise which was confirmed by the 2012 United Kingdom budget to come into effect on 1 August 2012 was later deferred until 1 January 2013 at short notice. The last increase in Fuel duty occurred in 2010. A decrease then occurred in 2022. The rates since 23 March 2022 have been as follows: VAT at
828-407: The price of a typical UK gallon to 1 s 1½d (equivalent to £8.57 in 2023). It was then abolished by the Finance Act 1919 after several years of steady petrol price rises and replaced by vehicle taxation , and the tax disc based on horsepower, after which the cost of petrol was about 4s (equivalent to £11.61 in 2023) per UK gallon. In 1928, following market reductions in the cost of
864-800: The public in a timely fashion. The Department for Transport administers BSOG on behalf of the Welsh government who set the BSOG rates and fund the scheme in Wales. The UK government raised Fuel Duty by 2p/litre in 2007, but the Welsh Government, and the Scottish Government refused to provide a compensatory increase in BSOG rates, with both devolved administrations citing budget difficulties following declines in budget consequentials from that year's UK government spending review . Transport
900-437: The purposes it can be used for, and there are heavy fines for misuse. Diesel used for passenger trains is zero-rated for VAT. Trains are allowed to use red diesel and rebated biodiesel, as they are included in the category of "Any vehicle designed to be operated on a railway" and in the list of exempted machines. As a result, fuel for passenger services is just taxed at the marked gas oil (red diesel) rate. To incentivise
936-437: The purposes it can be used for, and there are heavy fines for misuse. Diesel used for passenger trains is zero-rated for VAT. Trains are allowed to use red diesel and rebated biodiesel, as they are included in the category of "Any vehicle designed to be operated on a railway" and in the list of exempted machines. As a result, fuel for passenger services is just taxed at the marked gas oil (red diesel) rate. To incentivise
972-620: The rebate's inception in the 1960s. In autumn 2012 the DfT held a consultation on bus subsidy reform in which it presented options to switch some or all of the rebate away from the bus operators that incur the fuel cost, and pay it instead to local authorities. It opened on 13 September 2012 and closed on 12 November. The Government considered reducing BSOG in 2013 but following a joint campaign by bus operators, local authorities and campaign groups, decided against. However, some eligibility criteria were tightened. A 2014 economic appraisal carried out by
1008-577: The use of cleaner fuels in trains, the duty was reduced from 53p to 8p for blends of red diesel and biodiesel used in approved pilot schemes in the Budget 2007. Hydrocarbon oil duty Hydrocarbon Oil Duty (also fuel duty and fuel tax ) is a fuel tax levied on some fuels used by most road motor vehicles in the United Kingdom ; with exceptions for local bus services , some farm and construction vehicles and aviation , which pay reduced or no fuel duty. The government revenue from fuel duty
1044-475: Was abandoned after the disruptive fuel tax protests of 2000 . The Finance Act 1910 (the so-called People's Budget ) introduced a petrol duty in the UK for the first time. From April 1909 the rate was set at 3 d (£0.013) per UK gallon , bringing the price of a typical UK gallon to 1 s 1½d (equivalent to £8.57 in 2023). It was then abolished by the Finance Act 1919 after several years of steady petrol price rises and replaced by vehicle taxation , and
1080-408: Was confirmed by the 2012 United Kingdom budget to come into effect on 1 August 2012 was later deferred until 1 January 2013 at short notice. The last increase in Fuel duty occurred in 2010. A decrease then occurred in 2022. The rates since 23 March 2022 have been as follows: VAT at the current rate is then added to the total price. The taxation percentage of forecourt prices varies according to
1116-551: Was not de-regulated in Northern Ireland in 1985 and bus services are delivered through Translink . The Department for Infrastructure provided the Fuel Duty Rebate until it was withdrawn entirely in 2013. The rebate has not since been reinstated. Hydrocarbon oil duty Hydrocarbon Oil Duty (also fuel duty and fuel tax ) is a fuel tax levied on some fuels used by most road motor vehicles in
Bus Service Operators' Grant - Misplaced Pages Continue
1152-413: Was proposed that long-distance scheduled coach services should receive the rebate in return for offering half-price fares to older and disabled passengers. Certain registered construction and farm vehicles are allowed to use 'red diesel' which includes a fuel dye and has a significantly reduced tax levy compared to normal road fuel. There are restrictions around the types of vehicle it can be used in and
1188-413: Was proposed that long-distance scheduled coach services should receive the rebate in return for offering half-price fares to older and disabled passengers. Certain registered construction and farm vehicles are allowed to use 'red diesel' which includes a fuel dye and has a significantly reduced tax levy compared to normal road fuel. There are restrictions around the types of vehicle it can be used in and
1224-518: Was replaced by the Network Support Grant on 31 March 2022. This is paid at a flat rate of 14.4 p/km and includes terms and conditions to consult with relevant local transport authorities on timetabling, respond positively and quickly to reasonable requests from local transport authorities to amend service patterns, hours of operation, vehicles used or levels of provision, and to communicate changes to services with Transport Scotland, and
1260-681: Was taxed at half the rate of road petrol for all users until October 2008, when the reduced rate was limited to commercial flying. A minority of light planes use standard road petrol and pay tax at the normal rate. The Bus Service Operators Grant provides a fuel duty rebate to local bus service operators (but not for express coach which receives no rebate). As of April 2010 the rebate was £0.43 for diesel, £0.2360 for road fuel gas other than natural gas and 100% for biodiesel and bioethanol. Additional rebates are available for increasing fuel efficiency, low carbon emission vehicles and equipping vehicles with Smartcards and GPS tracking equipment. In 2001 it
1296-400: Was £27.1 billion for the financial year 2014–2015. This is an increase in cash terms in comparison to 2013-2014 but now only represents 1.5% of GDP. This is in contrast to the start of the 2000s when it was 2.3% of GDP. A further £3.9 billion is raised from the VAT on the duty, contributing some 3.5 per cent of total UK tax revenues . The Fuel Price Escalator , which was introduced in 1993
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