Bus services in England have halved since 2008 outside of London, leaving people on lower incomes and without cars struggling to get around. Whilst bus use decreased during the pandemic, lower demand has been an ongoing concern for areas outside the capital. However, the Berkshire town of Reading has seen steady bus use, being one of only five areas in England where the local bus company is owned by the council. Profits are reinvested into improving the town’s bus service without the pressure of maintaining private sector margins. This is in contrast to the almost all private model outside of London since privatisation in the 1980s.
Although the government has given metropolitan mayors increased powers over bus franchising, councils have been banned from forming private bus companies. Labour has pledged to give this opportunity for franchising to all areas and to permit councils and regional mayors to develop their bus companies. Labour claims that this policy would not require additional central government funding. Nonetheless, according to bus experts, there are easier ways to realise greater control over bus services than full public ownership. A franchise model may be optimal for realistic integration with other forms of public transport, such as trains, and for cohesion in the network. The key difference between franchises and full ownership is that private companies operate the services.
Direct control over bus routes would be possible with franchises, and councils and mayors could choose to back less profitable routes that are still essential for some groups. Congestion charges or parking levies could fund such developments. In Greater Manchester, buses are part of a franchise under Transport for Greater Manchester, and Liverpool City Region, West Yorkshire, and South Yorkshire are adopting the franchising system. Practical implementation of franchising may be more realistic than public ownership, which would require councils to purchase entire fleets outright.
Greater Manchester Combined Authority endeavours to reclaim public control of the region’s buses, which will cost £134.5m, and is employing central government funding as part of the region’s devolution package. Under Andy Burnham’s leadership, the changes have already shown immediate improvements, including more frequent buses and connections with trams and trains. Transport for Greater Manchester has reported a rise in passenger numbers due to more reliable bus services. Even so, some are not impressed with the idea of greater public control of buses, with critics arguing that it is not feasible without a clear source of funds.
Despite being owned by the council, Reading’s local bus services struggled during the pandemic, and with fewer commuters and more people working from home, the number of people travelling by bus to the train station has declined. CEO of Reading Buses, Robert Williams, says that bus companies will always face risks, such as poor service level projections or unforeseeable outside circumstances. If councils were to get it wrong, taxpayers would shoulder the burden of the financial risk
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