DEPARTMENT OF ENVIRONMENT, TRANSPORT AND THE REGIONS 1
                                                  17 March 1998
 ______________________________________________________________
                                
              INVESTING IN RURAL PUBLIC TRANSPORT
                                
50 million pounds additional funding to increase accessibility
and mobility in the countryside was announced by Chancellor
Gordon Brown in the Budget today, as part of the Government's
developing Integrated Transport Strategy. 

The new funding for rural public transport is designed to help
those living in rural areas, both car owners and non-car owners.

The bulk of the new resources will be allocated to a bus
partnership fund to improve bus services in rural areas, 
providing up to 160 million additional bus kilometres nationwide.

Not all rural areas are alike - and traditional transport
solutions are not always appropriate in some very remote regions.
The remainder of the funding will therefore be devoted to rural
community transport initiatives:

-         these would build on the success of existing
          community-based initiatives, such as community mini-
          buses and taxi-buses;

-         schemes such as these involve voluntary groups,
          businesses and local authorities working in
          partnership to provide transport services tailored to
          fit the needs of particular communities; and

-         would facilitate the better coordination of voluntary
          local authority and commercial services.

The Chancellor has today also announced an increase in Bus Fuel
Duty Rebate to reflect increases in diesel duty over the next
twelve months. This protects bus operators from the increases in
diesel, and will help ensure motorists have real alternatives to
using their cars. The Government will consult on how bus fuel
duty rebate can be better targeted to focus help on operators who
run cleaner vehicles and to support rural services. 



NOTES FOR EDITORS

1.   The additional 50m pounds will be split using the usual
     Barnett formula, giving: 41.7m pounds for England,  4.5m
     pounds for Scotland, 2.5m pounds for Wales and 1.3m pounds
     for Northern Ireland.

2.   Funding for non-commercial bus services will be co-
     ordinated by DETR, the Scottish and Welsh Offices, and the
     Department of Environment in Northern Ireland. Steps will
     be taken to ensure funding is allocated within each country
     on a fair and comparable basis.

3.   The additional funding for rural bus services represents
     around a 20 percent increase in funding for non-commercial
     services. 

4.   The Rural Community Transport Initiative will be
     administered by the Rural Development Commission - and the
     Scottish Office, Welsh Office and Department of Environment
     in Northern Ireland. 

5.   The additional funding for rural community transport
     initiatives represents a 300 percent increase in current
     Government funding for such measures.

6.   Further announcements on public transport will follow in
     the Integrated Transport White Paper later in the spring.

7.   DETR, Scottish Office, Welsh Office and Northern Ireland
     Office Ministers will announce further details shortly. 





DETR PRESS OFFICE
Press enquiries to: 0171 890 4655
Non-media enquiries to: 0171 271 4800

If you have access to the Internet you can find this news release
at http://www.hm-treasury.gov.uk.  Other Treasury material can
also be found at this address