From the Tees Valley to Cornwall, politicians are hoping to fix Britain’s privatised bus system

Across the country, authorities are hoping to use new powers to bring the 'London model' for running Britain's buses into force.

It was an unlikely parting gift from George Osborne, but last year, the government passed a law that could help undo the worst excesses of bus privatisation. 

Under the Bus Services Act 2017, elected mayors and some other authorities in England have new powers to regulate the private bus network in their areas – adopting a model like the one used in London.

While still technically private, the London system – which Margaret Thatcher failed to fully deregulate – means local companies operate services under contract with the local authority. Those bus companies have to operate under a common plan – with the same rules, pricing, and coordinated timetabling to ensure people have a consistent service.

It’s a move away from the fragmented private free-for-all that leads to a plethora of different prices, patchy provision and unreliable services. And it’s how Sadiq Khan has managed to freeze fares across the network.

This week the House of Commons Library published a new briefing on the Bus Services Act. Buried deep is the surprising fact that all but one of the seven newly-elected ‘metro mayors’ in England are looking at bringing the privatised bus network in their areas to heel. That could mark the most significant overhaul of the fragmented system since it was privatised in 1986.

That’s not for want of trying. As the Commons’ briefing points out: “The Labour Government introduced a type of reregulation in 2000 in the form of a Quality Contract Scheme (QCS). However, no area has ever introduced such a scheme, largely due to concerns about the complexity of the process and a lack of protection from legal challenge on the part of incumbent private bus operators. The closest anyone has come to introducing a QCS is the North East, whose plans eventually fell by the wayside late in 2015.”

And while the 2017 Act rightfully caused uproar by banning councils from setting up new publicly-owned companies, it could mark a step forward in ending the managed decline of our bus network.

Greater Manchester

Labour’s Andy Burnham is looking at introducing a simpler, London-style, bus system within three years.

“Passengers currently use buses run by more than 30 different bus companies with 100 different ticket options…Regulation could mean set fares, the introduction of Oyster-style payment cards which allow travel on buses and trains, and more consistent branding,” the BBC reports.

Now consultation is kicking into gear – with the bus companies themselves. 35 local, national and international bus operators have been invited to give their views. The private companies are known to be extremely hostile to the London-style model.

Yet the companies have been accused of holding the city ‘to ransom’ after saying they won’t invest in new buses or services until they know whether the mayor will go ahead with a new franchised system.

But council leaders want to get on with it as soon as ‘humanly possible’ – meaning they don’t look set to bow to private operators’ demands. They are pumping £11.5m into the franchise proposals.

Cambridgeshire & Peterborough

Even the Tory Mayor for Cambridgeshire & Peterborough is looking at how to control the bus companies. James Palmer is backing an ‘Autonomous Metro’ proposal for Cambridgeshire, which will include looking at how to use the new powers of the 2017 Act.

It appears to follow pressure from people in the area – as well as ministers – in the face of initial reluctance. Cambridgeshire and Peterborough Combined Authority Board has now agreed to provide £150,000 towards a review of bus provision across the area – which will look at franchising as an option. The Mayor has said he is ‘excited’ by the review.

But ‘local’ operator Stagecoach appear to have been lobbying hard against any move towards franchising in the area.

Liverpool City Region

Labour Mayor Steve Rotheram was elected on a platform to look at using the regulatory powers in the 2017 Act. Merseytravel is now looking at the options available, but the devolution deal was strongly in favour of franchising as a model:

“The ability to franchise bus services in the city region, subject to necessary legislation and local consultation…will support the Combined Authority’s ambitions in delivering its Bus Strategy and in enhancing the local bus offer. This includes the delivery of smart and integrated ticketing, working as part of Transport for the North on their plans for smart ticketing across the North.”

The Combined Authority will have a full paper on the plans within a year, but Rotherham has urged the public to “bear with us” because the legislation was complex and the process “overly bureaucratic”.

Sheffield City Region

The 2015 Sheffield devolution deal pledged “smart and integrated ticketing across the Combined Authority’s constituent councils” – i.e. an Oyster-style system – which would have to involve regulating the private companies.

Yet the Sheffield City Region’s transport prospectus last year appeared lukewarm about the idea of bus franchising – failing to even mention the possibility.

Nonetheless, Labour Mayor Dan Jarvis was elected this May on a platform to use bus franchising powers – raising campaigners’ hopes that the plans will move forward.

Tees Valley

“Ben Houchen, the Conservative Mayor for the Tees Valley, has indicated his intention to look into the potential benefits of franchising and to simplify fares and ticketing,” according to the Commons paper.

Now local transport bosses have agreed to – like Cambridgeshire – pump £150,000 into investigating the London-style regulated model.

TeessideLive reported recently that “a report prepared for [the region’s] committee warned the cost of setting up franchising in the Tees Valley would be “considerable” at £4m. But the report also reckoned £400m could be generated by the project in the first 10 years.”

Again, however, bosses will have to resist pressure from the likes of Stagecoach, and notes of ‘caution’ are already in the air. Mayor Houchen told an audience last month: “I don’t know what the right thing is for buses at the moment. Until we do the feasibility work we don’t know what our options are.” He added that franchising ‘would not be a panacea’.

West Midlands

In March last year, Transport for the West Midlands (TfWM) set out the conditions under which bus franchising could be justified – but said there is no case for introducing the change yet. The conditions included if the commercial bus market is ‘generally unresponsive to local policy and is failing to invest’.

In May, Tory Mayor Andy Street was elected for the region. While he has not make any pledge to use the franchising powers in the Act, “he was elected on a platform to improve bus quality, and accessibility and to roll out contactless and smart payments on West Midlands buses,” according to the Commons note.

Left Foot Forward is awaiting a response from the West Midlands Combined Authority on whether the region will be pushing ahead with bus regulation.

West of England

Tory Mayor for the West of England Tim Bowles has indicated an interest in using franchising powers. And the combined authority say a new system “will have clear information, fast boarding and ‘smartcard’ ticketing linking with wider bus and rail services, creating a new way of travelling and be a catalyst for transforming public transport travel across the West of England area.”

However, the Combined Authority stated last year that: “A decision on whether to proceed with franchising has not yet been made” while appearing to pour cold water on the idea. The region’s transport study late last year made no mention of franchising.

Elsewhere

Areas that aren’t combined authorities or lack Mayors are still able to regulate buses – but must provide a compelling business case to the government. Cornwall had an agreement bus franchising as part of its devolution deal. East Anglia and Greater Lincolnshire could also adopt the London model if they chose to (there’s a handy map if you’re interested).

The overall picture

The complexity of the legislation – much like the 2000 law passed by Labour – does throw a lot of hurdles in the way for local authorities.

Combine that with the fact that some regions are dealing with politically-competing local authorities – some of which want to keep their own bus systems – and it’s going to be a long road before the big regions get London-style influence over private bus bosses.

Then throw in the mix lobbying by the companies themselves – not to mention the financial hurdles to setting up the franchise schemes at a time of cuts – and it’s a big ask.

But some authorities and Mayors are rightly determined to push ahead – beyond petty rivalries and special interests.

In Greater Manchester, Liverpool and Sheffield – and areas like Cornwall that lack Mayors – anger at the failure of local bus services is forcing change.

Josiah Mortimer is Editor of Left Foot Forward. Follow him on Twitter.

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