(12 Apr 2020, 1:04 pm)streetdeckfan wrote Correct me if I'm wrong, but those are the kinds of routes that BSOG was created for, however in reality it can be claimed on any route, regardless of its profitability, which I think is 100% wrong!
BSOG replaced FDR (Fuel Duty Rebate). Operators are able to claim this providing the bus is operating a registered local bus service - so it cannot be claimed on National Express services for example, or any closed scholars contracts, but can be claimed on any other service which is open to and used by the public.
Some interesting thoughts in the book below - specifically Page 136:
https://books.google.co.uk/books?id=HgmDmv50AjsC&pg=PA1&source=gbs_selected_pages&cad=3#v=onepage&q=bsog&f=false
It's a pretty old source and the citations aren't active anymore, but particular quotes that stand out are "BSOG lowers the cost of providing services, resulting in lower fares, a more comprehensive network of services, less congestion on our roads and a better and healthier living environment in our communities"; "BSOG also helps the Government achieve its aims of carbon reduction" (which is why there are further enhancements for low-carbon emission buses such as StreetDecks of 6p/km); "The Government has publicly recognised the value of BSOG"; "The Department for Transport's own submission to the review of the local bus market said that BSOG represents high value for money"; and "If the Government withdrew BSOG this would have damaging and wide-ranging consequences for local communities, public transport services, low-income groups, the UK economy, and the environment".