Conclusion 4

The Department has not yet provided local transport authorities with the information they need to understand the relative merits of different bus operating models, including franchising. Franchising (whereby local transport authorities take on more responsibility for bus services and award contracts to private operators) gives local transport authorities more control over bus services, but requires considerable time and investment, planning and commercial expertise, and introduces 4 significant financial risk to the taxpayer. Greater Manchester Combined Authority spent £134.5 million and took seven years to franchise its bus services. The Department is testing different franchising models which offer varying levels of cost, risk and opportunity, but franchising will not be the best solution for many areas. Local transport authorities do not have the information they need to understand the pros and cons of moving to a franchised network versus making the most of the current system of enhanced partnerships with operators. Significant improvements can be made through these partnerships, which can deliver many of the benefits that passengers want. For example, in Cornwall, the local transport authority worked with operators to co-ordinate bus and train timetables and introduce multi-operator tickets, with bus usage now 40% above pre-COVID levels. recommendation The Department should support local transport authorities to understand the benefits and risks of different models for running bus services and optimise how they work, including learning from the pilots of franchising models, providing guidance based on its review of enhanced partnerships, and promoting effective low-cost and no-cost approaches.