Bus franchising plans still on the table despite Covid-19

Greater Manchester is still planning to push ahead with taking control of the bus network despite the Covid-19 pandemic.

Leaders say their reforms, which would allow them to take over route planning, fare setting and connecting buses to the wider public transport network, are now needed ‘more than ever’.

If approved, the region would become the first in the UK to bring back regulation since Margaret Thatcher privatised all bus networks outside of London in 1986.

However council tax will still have to rise considerably in order to pay for the bus franchising proposals, which will cost at least £134.5m.

A further public consultation on the plans, which will take into account the ‘severe’ impacts of Covid-19, is planned between December 2 and January 29, 2021.

Bus operators who have long-opposed the plans have urged the combined authority to work with them to build bus usage back up to pre-pandemic levels.

But Sir Richard Leese, deputy mayor of Greater Manchester, has insisted that bus franchising remains the best option for bouncing back from the impact of coronavirus.

He said: “Throughout this pandemic, buses have proven themselves to be a critical lifeline for people who have needed to get to work, to help other people or to access essential services.

“But before Covid-19, bus usage was already falling in Greater Manchester, and the pandemic has caused passenger levels to drop even further.

“If bus usage remains low and nothing is done to reform the market, services may be further reduced, which may mean the public sector will have to provide more funding to keep essential services running, especially for Greater Manchester’s poorest and most vulnerable who depend on them – but we currently have no control and limited oversight over any changes to services.

“That is why, now more than ever, we need our buses to work for the people of Greater Manchester.”

The region’s mayor Andy Burnham had hoped to sign off on bus franchising in March only for the Covid-19 outbreak to scupper his plans.

A central part of funding the scheme is the mayoral precept, a part of council tax which goes towards paying for regional services that fall within Mr Burnham’s remit.

Taxpayers already pay £3 towards a year towards bus reform as part of their precept

But this will rise progressively to £18.20 for Band D properties by the end of the 2025/26 transition period, which has been pushed back a year due to Covid-19.

The new eight-week consultation, with a view of proceeding with bus franchising sooner rather than later, is expected to be approved by Greater Manchester leaders on November 27.

And unlike the highly controversial regional spatial framework which is struggling to get consent from all councils, the proposals are said to be considered a positive move across the political divide.

Sir Richard Leese said: “There is clearly some anxiety about the medium-term finances arising out of Covid but I think that’s very legitimate.

“But there is certainly no dissent, and for a lot of people they actually are more enthusiastic and the case has been more strengthened.”

The consultation will include the outcome of a report on the Covid-19 impact on bus franchising developed by Transport for Greater Manchester (TfGM).

It suggests there is still uncertainty around how the bus market will recover, with Transport for Greater Manchester (TfGM) developing four possible scenarios.

They range from public transport returning to normal, to car travel dominating and public transport continuing to slump, to public transport exceeding pre-crisis levels.

Government funding of £78m remains a central part of Greater Manchester’s bus franchising plan, and if this falls away during transition then the size of the network could be reduced.

The remaining outlay is covered by £17.8m from local councils, £11m from previous mayoral precept, and £5m in business rates.

But even though the value of money for the scheme is now lower, and in the worst case scenario that sees a dramatic fall in patronage that would threaten its affordability, the report says there is still a ‘strong case’ for bus franchising.

The report concludes by saying: “Without intervention, the long-term recovery of Greater Manchester could be under threat, and the ability to make a greater impact on issues of congestion and air quality that affect the economy and people in Greater Manchester.”

Deferring the scheme was considered as an option, with one of the benefits being that it would allow bus operators to give a better idea of what they would offer through partnership working.

Stagecoach is one of several operators bidding to keep control over buses, and has previously offered to share profits with TfGM as part of a £142m investment in the regional network.

The firm says a key lesson learned from the pandemic has been the positive impact from government, local authorities and public transport operators working in partnership to deliver essential services in challenging circumstances.

Martin Griffiths, chief executive of Stagecoach, has proposed that TfGM enters into a ‘recovery partnership’ with them, which would be given ring-fenced funding focused on passenger improvements jointly set by all parties.

He said: “These would provide the framework, funding and flexibility to ensure bus networks coming out of the pandemic meet the changing needs of local communities, get people back to work, and maximise the power of buses to drive a green recovery.

“Our priority before and throughout the Covid-19 pandemic has been to provide safe, high quality and accessible public transport built around the needs of local people. 

“We will continue to work constructively with stakeholders in Greater Manchester and elsewhere to deliver the best and most sustainable bus networks for communities for the long-term.”

Image credit: Transport for Greater Manchester