The Better Buses Bill and the Future of Bus Franchising in England

This bill aims to streamline the bus franchising process and remove barriers for local leaders, as well as lift the current ban on councils owning and running bus operators. According to the Government, these changes are expected to drive a “bus revolution” in England, which will enable local transport authorities to have more control over bus services. This article explores how key regions in England are realising these changes.

Significant regional developments

On 11 July 2024 the Secretary of State for Transport, Louise Haigh, visited Manchester to launch the Government’s bus revolution, pledging to help every community regain control of buses through franchising or public ownership. She discussed how the first bus franchise outside of London, Manchester’s Bee Network, could be replicated nationwide to provide better services, increase passenger numbers and create opportunities in under-served regions. The move to bus franchising took Greater Manchester six years to implement; by removing “unnecessary barriers” to franchising, the Government’s plan aims to enable faster delivery of franchised services.

Some key regions that are seizing the opportunity to franchise their bus services include the West Midlands, North East, Liverpool and West Yorkshire.

West Midlands

The West Midlands Combined Authority (“WMCA”) Board has recently taken a significant step towards franchising the region’s bus services. This decision aims to provide better value for money and greater control over routes, timetables, and fares. Currently, the WMCA spends £50 million annually in subsidies to private operators, yet fares continue to rise and services are being reduced. To address these issues, the WMCA plans to conduct an independent audit and public consultation, with a final decision expected by March 2025. The transition to a franchised system is estimated to cost around £22 million. The primary goals of this initiative are to create an affordable and accessible bus network, ensure a commitment to zero-emission vehicles, and enhance public ownership and competition among operators. This move is expected to lead to a more efficient and user-friendly public transport system, benefiting residents and contributing to environmental sustainability.

North East

Mayor of the North East Kim McGuinness has pledged significant reforms to reverse the decline caused by strikes and cuts to services which have been deemed commercially unsustainable. This would involve the North East Combined Authority contracting services to operators, with the Mayor setting ticket prices and other key service details. McGuinness aims to launch her proposed “Angel” transport network by the end of her first term in 2028. The likelihood of bus franchising in North East England has increased following a report considered by the North East Combined Authority (“NECA”) recommending the progression of a formal Franchising Scheme Assessment (“FSA”). The report provided a detailed analysis of franchising and an expansion of the current Enhanced Partnership model as reform options, alongside a brief analysis of potential public ownership. It concludes that there is a compelling case for change due to instability in the bus network and the need to meet regional objectives, recommending that Mayor McGuinness and the Cabinet proceed to an FSA. The FSA for the North East is estimated to cost around £8.5 million and take approximately 30 months to complete. NECA Director of Transport Tobyn Hughes emphasizes that franchising should proceed only if the FSA determines it is the best option, with an independent audit and consultation required before a final decision by Mayor McGuinness.

Liverpool

Mayor Steve Rotheram has announced that the rollout of bus franchising in the Liverpool City Region will be accelerated by a year, now set for completion by the end of 2027. Additionally, a bus rapid transit (“BRT”) scheme between Liverpool city centre and Liverpool John Lennon Airport, as well as to the stadiums of Everton FC and Liverpool FC, is to be delivered by 2028. The region’s bus fleet will be decarbonised by 2035, with a BRT network centred on Birkenhead also planned.

West Yorkshire

The West Yorkshire Combined Authority is set to bring bus services back under public control, with the authority deciding on services and timetables. The transition to franchising will require a one-off investment of £15.1 million over four years and an £85.5 million investment in depots. Public support for this move is strong, with about 82% of respondents to a consultation backing the franchising plan. The first franchised buses are expected to launch in parts of Kirklees, Leeds and Wakefield from March 2027.

Comment

The move towards bus franchising could result in a significant transformation of bus service operations across England, offering substantial opportunities for bus companies to engage with the franchising model. As seen above, many key regions in England are currently exploring the benefits of franchising. This shift aims to bring services under public control, ensuring better coordination, improved service quality, and greater accountability. The potential for a more integrated and efficient public transport system is promising, with the ultimate goal of enhancing passenger experience and sustainability.

How Eversheds Sutherland can help

Our team has an extensive track record of delivering important transport projects globally, having advised a number of private and public sector clients on significant franchises and concessions including in the bus sector.