Bus firms and local authorities square up for fight over franchising in Parliament

A "battle is brewing" over plans to remove hurdles to the franchising of bus services as the Government prepares for the line-by-line scrutiny of its Bus Services Bill, according to the national media.

The Telegraph highlights the diverging views of bus companies and conurbation authorities, with Transport for Greater Manchester telling it that whilst better partnerships can "give you quite a lot," franchising is "the only way" that public authorities can design networks and set fares. But the right-leaning newspaper asserts that "franchises pose a threat to Britain's largest bus companies," with Stagecoach's profits £141m in its regional businesses compared with £26m in London, which has franchises.

Liberum stockbroker tells the newspaper that the Bill would "sweep away" statutory protections for bus companies and end commercial operations where they do not win franchises. The firm claims that under the legislation as currently drafted, local authorities will be able to press ahead "regardless of what independent audits conclude," unlike in Tyne and Wear, when statutory tests were not met. But it also quotes RATP Dev, which runs bus services in London, as saying partnerships "allow incumbent players to divide the market between themselves" whilst maintaining "barriers to entry" for new firms.

The newspaper's reporting follows articles generally more in favour of the proposed legislation, with an opinion piece by Leeds City Council in The Guardian arguing it will "finally give local authorities the powers to improve bus services," The Journal in the North East similarly giving column inches to Newcastle City Council to say it will put decisions "in the hands of local representatives," and City Metric running an opinion piece saying it could "revolutionise life" in England's cities.

The media coverage comes ahead of the line-by-line reading of the Bill in the House of Lords, due to start on the 29th June.