Agenda item

Options for Bus Franchising in the West of England

The report proposes that a review is undertaken by the West of England Combined Authority (as the Local Transport Authority) to thoroughly consider the opportunity offered by franchising to improve the public transport offer within the West of England.

Minutes:

Cllr Sarah Warren introduced the report, moved the officer recommendation and made the following statement:

 

“Our bus industry in England is broken almost beyond repair. Along with other parts of the public sector: the NHS, schools and local government - this industry forms part of the very fabric of society that this government is dismantling with alarming and accelerating speed. Yet thousands of people across Bath and North East Somerset rely on buses to get about every day. For many, buses are the vital lifeline connecting them to schools, work, hospitals, shops, to new opportunities, and to each other.

 

For far too long, residents have been forced to contend with a bus service that’s too confusing, unstable, unreliable, and expensive. This cannot continue and we can no longer afford to accept a public transport service that leaves behind the very people who need it most.

 

Bus services were deregulated by the Thatcher government in the 1980s, leaving services organised on a commercial, free market basis, and operators (more-or-less uniquely in the developed world) in full control of which services they will run, the fares they will charge, and the vehicles they will use. This has resulted in an uncoordinated network with a confusing array of ticketing options. Councils watch, impotent, as profitable routes are flooded with buses, leaving other areas at risk of becoming public transport “deserts,” with no alternative to the private car.

 

For public transport to be a viable option for our communities it needs to be frequent, reliable, fast, affordable, accessible, safe, comfortable, and go where people want to go. However, widespread market failure across the industry has led to rapidly increasing subsidy by local authorities of unprofitable but “socially necessary” services (which are no longer permitted cross subsidy from profitable routes). And this at a time when council income is falling. Following covid, we have seen this culminate in a near total collapse in the most socially important bus services across much of the country, including here the West of England.

 

With transport currently accounting for 29 per cent of carbon emissions in the Bath and North East Somerset area, and buses a vital lifeline for communities, we are committed to enabling more people to travel by bus. Using the powers that devolution has given us, we want to build an integrated transport system that’s faster, cheaper, cleaner, and more reliable.

 

This starts by taking back control of our buses to give us (rather than the private operators) greater control over fares, routes, vehicle specification and timetables. That way, we can ensure buses integrate better with other modes of transport and offer simpler and more convenient ticketing.

 

In the Bus Back Better Strategy of 2021, the Government set out its support for

Local Transport Authorities to access franchising powers as a way of rapidly delivering improvements for passengers. A franchise system would effectively mean that every bus service is paid for by the combined authority, who would in turn receive the income from fares, and they would contract with private bus companies like First or Stagecoach, to operate the services.

 

The model has been used in London for decades and is being introduced in Greater Manchester, whilst – in contrast - the West of England is the only combined authority nationally NOT to be investigating franchising. B&NES council backed franchising when bus services were discussed last October, and we are today joining other councils across the West of England in calling for the Metro Mayor to commission an independent review of options for the franchising of bus operations.

 

It is true that other Mayoral Combined Authorities have precepting powers, meaning they can raise a precept on Council Tax to fund mayoral responsibilities, including public transport, as part of their budget. That is why we are proposing that Mayor Norris should also explore this option to provide additional vital funding to support the bus network locally.

 

Franchising will be the most significant change in how buses are operated in the region since they were deregulated in the mid-1980s. We want to put the ‘public’ back into public transport by putting us in control of our bus services, and make these services work for us, rather than as a cash cow for private shareholders.

 

I say to Mayor Norris, bus franchising was a central plank of your manifesto, and you told us the possibility was “on the table,” but we learnt only this week that no formal analysis has been done on bringing buses back under public control. The power to do this lies with you, and with you alone. It’s time for new thinking that both contributes to our net zero targets and puts the needs of passengers first. Now let’s see you put your money where your mouth is, and commission a review of options, as step 1 on the long road to franchising. I move.”

 

Cllr Kevin Guy seconded the motion and made the following statement:

 

“Thank you Cllr Warren for an extremely clear explanation of the issues facing bus services in the West of England and indeed across the country as a whole.

Councils are rather stuck in the middle when it comes to services. We have an uninterested government, a near monopoly company running most commercial services and the West of England Combined Authority, which is supposed to be in charge of buses, but which isn’t willing to grasp the bull by the horns.

 

And as usual it’s residents – particularly the most vulnerable and isolated – who are stuck in the middle. We desperately need better communication from the West of England Combined Authority with information being shared transparently and promptly, rather than being drip fed.

 

We have written several times to the West of England Mayor asking for engagement and public information around his new minibuses on demand scheme (or DRT) – a scheme we now hear will not be up and running this Spring, but instead will be implemented in stages. We have also asked him to confirm which new ‘spinal’ services will be funded. When will North East Somerset residents know what options are available to them so they can plan ahead? (It’s a particular problem for children who need public transport to get to school.) We don’t know (we do know that the Mayor offered nothing for Bath residents). We want the DRT to work, but it’s a big gamble.

 

Franchising seems to be one tool available to the Combined Authority to help deliver better services in B&NES. So far, the Mayor has been reticent about when – and indeed if – he will get started on franchising. It’s a challenging and expensive process, which could take a long time. The Mayor is in charge of the buses and he needs to get on with it as soon as possible.”

 

Cllr Richard Samuel stated that WECA has let the region down and must now consider franchising along with precepting powers.  The current transport levy in insufficient to run a franchising system.  Certain routes will require funding through a precept.

 

Cllr Manda Rigby stated that the decisions and communication from WECA regarding bus franchising have been poor.  She pointed out that the investigation of franchising was set out in the Mayor’s manifesto prior to his election.

 

RESOLVED (unanimously):

 

To request the Council’s Leader to write formally to the WECA Mayor requesting that the Mayor:

 

(a)  Commissions an independent review of options for the franchising of bus operations with the West of England, including considering the adoption of precepting powers; and provides a fully costed business case for the recommended changes engaging fully with each of the WECA constituent authorities at all stages of the review.

 

(b)  Provides regular updates to the Planning, Transport and Housing Board on the progress of the review.

Supporting documents: