Introduction
The Scottish Government sets the national policy framework on buses which is delivered by bus operators, local authorities, Regional Transport Partnerships and the regulatory authorities. In order to assist in this delivery the Scottish Government provides substantial funding for bus services amounting to over £220m of direct support in 2007-08. In addition, latest figures show that from the record levels of funding local authorities receive from the Scottish Government they have spent £51m supporting local bus services. This substantial outlay is intended to help the industry drive down fare costs, encourage more routes and enable more older and disabled people to use these important services. Latest data shows that Scotland provides £23 per head of population more subsidy than in England (excluding London which is not deregulated).
Bus Operators 
The provision of local bus services is generally a matter for individual bus operators who use their own commercial judgement on service routes and frequencies. This market approach encourages innovation and entrepreneurship and provides incentives for operators to provide new services and develop new types of service.
Local Transport Authorities
Under the Transport Act 1985, local transport authorities have a duty to identify where there is a social need for particular bus services and to subsidise these at their discretion. This procedure allows local authorities to influence the frequency and routing of services, including off-peak services. The Scottish Government does not have the power to directly subsidise bus services. We do, though, provide funding to local authorities for this purpose. The Scottish Government is providing local government in Scotland with record levels of funding over the period 2008-11. The vast majority of the funding is being provided by means of a block grant. It is the responsibility of each local authority to allocate the total financial resources available to it on the basis of local needs and priorities.
Traffic Commissioner for the Scottish Traffic Area
The post of Traffic Commissioner, currently held by Joan Aitken, is a cross border public authority with reserved and devolved responsibilities. The Traffic Commissioner is the licensing authority for the bus and coach industry in Scotland and applies the regulatory regime. The Traffic Commissioner's responsibilities include the licensing of bus operators, the registration of local bus services and ensuring that operators keep their vehicles in a roadworthy condition. Licensing issues are reserved to the Westminster Parliament. Registration of services is devolved and subject to the Public Service Vehicles (Registration of Local Services) (Scotland) Regulations 2001.