UK Bus Franchising Explaination
Report by Lee Fletcher and Emery Taylor
To explain the updated UK Bus Franchising Guidance, here is a structured, easy-to-understand, and informative approach:
1. Introduction and Context
• Objective: Explain that the UK Government is focused on improving bus services to meet the needs of local communities, especially in underserved areas.
• Current System Flaws: The existing commercial model, where operators determine routes, is not fully serving communities, leading to declining bus usage and service levels.
• New Approach: The Government's updated guidance aims to empower Local Transport Authorities (LTAs) to take control of bus services through franchising. This gives them the ability to decide routes, schedules, and standards that cater better to local needs.
2. Key Elements of the Updated Guidance
• Franchising Powers: Previously, only Mayoral Combined Authorities (MCAs) could use franchising powers. The updated guidance opens up these powers to all LTAs. On 9th September 2024, the Secretary of State laid legislation that enables any LTA to pursue franchising.
• Flexibility: The franchising model is flexible. LTAs do not need to franchise all routes at once; they can focus on key corridors or specific areas. It also allows combining franchised services with commercial services.
3. The Franchising Process
• Five Key Stages:
1. Access Powers: LTAs need to access statutory powers and commit to preparing a franchising proposal.
2. Proposal Development: Develop a detailed proposal and assess it against other options, such as Enhanced Partnerships (EPs).
3. Consultation: Consult stakeholders on the proposal.
4. Decision to Proceed: Based on consultation, decide whether to move forward with franchising.
5. Implementation: Transition the market to a franchised system.
4. Benefits for LTA Areas
• Local Control: The guidance empowers LTAs to design bus services that directly meet local needs. This could lead to improved service integration and reliability.
• Flexibility for Rural Areas: For rural areas, the franchising model offers flexibility, allowing for both franchised and commercial services that maintain connectivity.
• Proven Models: The success of Greater Manchester's franchising shows the potential, with a reported 5% growth in passenger numbers.
5. Support and Guidance
• Government and DfT Support: The Department for Transport (DfT) is increasing its capacity to support LTAs through the franchising process, offering on-the-ground assistance to simplify and speed up implementation.
• Statutory and Non-Statutory Guidance: The guidance includes both statutory (must be followed) and non-statutory advice to help LTAs navigate the process.
6. Conclusion
• Opportunity: The updated guidance represents a significant opportunity for LTAs to improve its bus services through greater local control and flexible franchising options.
• Call to Action: Encourage people to consider how these changes can be leveraged to enhance public transport in their areas.
This structured explanation should help stakeholders understand the updated guidance and its potential benefits for WECA, North Somerset, and the northern half of Somerset.
Here’s a comprehensive list of potential questions and corresponding answers that might come up, including questions from those who may be sceptical or opposed to bus franchising:
1. Why do we need bus franchising? Can’t we improve services through Enhanced Partnerships (EPs) or the current commercial model?
Answer:
The current commercial model, while effective in some areas, has led to declining service levels and passenger numbers in many areas, including ours. Enhanced Partnerships (EPs) have their merits, but they rely heavily on collaboration with bus operators, who still maintain control over key decisions like routes and timetables. Franchising gives Local Transport Authorities (LTAs) full control over services, allowing us to make decisions based on community needs, ensuring integration with other transport modes, and improving service reliability. With franchising, we can design a network that is more aligned with our specific needs, especially in rural areas where the current system falls short.
2. Won’t franchising be too costly and bureaucratic to manage?
Answer:
Franchising can come with upfront costs, but the Government’s revised guidance has made the process quicker and cheaper for LTAs by simplifying and streamlining the procedures. Additionally, franchising gives us the flexibility to phase in services and focus on areas where we can make the biggest impact first, rather than trying to overhaul the entire system at once. Over time, the benefits of franchising—such as improved service coordination, increased passenger numbers, and better integration with other forms of transport—are expected to offset the costs.
3. What about the private operators? Won’t franchising push them out or reduce competition?
Answer:
Franchising is not about pushing out private operators; it’s about creating a more structured system where bus operators still have a key role but work within a framework designed by the local authority. Operators will bid for contracts to provide services under the franchise, allowing competition to continue in a controlled environment. This ensures services are delivered to the required standard, with accountability to the local authority. In fact, franchising has been shown to work well in cities like London, where private operators still play a crucial role in service delivery.
4. Won’t this limit the choice and innovation that private operators currently bring to the market?
Answer:
Franchising doesn’t limit innovation—it can actually encourage it. By setting clear service standards and goals, LTAs can incentivise operators to bring forward innovative solutions to meet those needs, whether it’s through more eco-friendly buses, smarter ticketing, or improved passenger experiences. Innovation can still flourish within a franchising model, but it will be directed in ways that align with the broader needs of the community rather than driven purely by profit.
5. Is franchising really going to work in a rural area like Somerset? Isn’t this better suited for cities?
Answer:
While franchising has been successful in urban areas like London and Greater Manchester, the new guidance specifically acknowledges the importance of flexibility in rural settings. Franchising allows us to blend franchised services with commercial ones, which is particularly useful in areas where routes might not be commercially viable but are essential for maintaining connectivity. By taking control of these decisions, we can ensure that vital routes are preserved, and rural communities are not left behind.
6. What evidence do we have that franchising will increase passenger numbers or improve services?
Answer:
Greater Manchester’s early experiences provide clear evidence of franchising’s potential. In just six months after launching their first franchised services, they reported a 5% increase in passenger numbers. London’s long-established franchising model has consistently delivered one of the best urban bus networks in the world. By taking control of bus routes, timetables, and service standards, local authorities are able to design services that are more responsive to local needs, which attracts more passengers over time.
7. Is there a risk of job losses among bus drivers or support staff with franchising?
Answer:
Franchising does not aim to reduce jobs. In fact, the Government’s guidance ensures that if franchising is introduced, existing employees working on those services are protected under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE). This means that staff working for an operator whose services are transferred to a new operator will have their employment rights preserved. We would also be looking to enhance services, which could increase job opportunities in the long term.
8. If franchising doesn’t work out, what is the backup plan?
Answer:
Franchising will be introduced based on thorough planning and consultations, supported by the Department for Transport and with insights from successful case studies like Greater Manchester. However, if an LTA finds that franchising isn’t delivering the expected results, it can be scaled back or re-evaluated. The guidance allows for flexibility, meaning LTAs can adapt their approach based on changing circumstances. There are also other models like Enhanced Partnerships that can complement franchising if needed.
9. How will franchising ensure better service for passengers when the private sector has failed to do so in some areas?
Answer:
The key difference with franchising is control. Under the current system, private operators prioritise commercial interests, which may not always align with the needs of passengers. Franchising gives LTAs the ability to set clear standards for service delivery—such as punctuality, vehicle quality, and customer service—which operators must meet under their contracts. This ensures a higher level of accountability and puts the interests of passengers first, rather than leaving key decisions purely to market forces.
10. How will franchising address issues such as fares and ticketing?
Answer:
Franchising gives LTAs control over fare structures, allowing us to introduce simpler, more affordable ticketing schemes, including integrated tickets across different modes of transport. This could make bus travel more accessible and attractive to passengers. By having control over the fare system, we can ensure pricing policies reflect local economic conditions and help promote more sustainable travel choices.
11. What will happen to smaller bus operators under a franchising model? Won’t they be pushed out by larger companies?
Answer:
The guidance encourages LTAs to create opportunities for small and medium-sized operators to participate in franchised services. For example, contracts can be designed in a way that allows smaller operators to bid for specific routes or services, and there may also be opportunities for subcontracting. The goal is not to shut out smaller operators but to involve them in delivering high quality, locally accountable services.
12. What happens if a bus operator fails to deliver under a franchise agreement?
Answer:
In a franchising model, operators are bound by contracts with the local authority. If they fail to meet the agreed standards, the authority can take action, such as imposing penalties, requiring improvements, or ultimately replacing the operator with another through a competitive bidding process. This ensures a higher level of accountability and reliability in service delivery, which is lacking in the current system.
13. What kind of support will Somerset get from the Government or the Department for Transport?
Answer:
The Government has committed to providing more support for LTAs pursuing franchising. This includes on-the-ground assistance, sharing best practices from other areas, and guidance on navigating the franchising process. The Department for Transport has expanded its capacity to ensure that LTAs receive the help they need to successfully implement franchising.
14. How long will it take to implement franchising, and will there be disruptions during the transition?
Answer:
Franchising implementation is typically phased, which helps to minimise disruptions. The process involves careful planning and consultation to ensure that services continue during the transition. Depending on the scale of the franchising proposal, the timeline can vary, but the focus will be on ensuring a smooth handover and maintaining continuity of service throughout.
