Haigh hails 5% passenger rise from Manchester’s franchised bus services

Louise Haigh made her first official visit as Transport Secretary to see the Manchester franchised bus project with Mayor Andy Burnham

The first bus franchising system in England outside London, the integrated Bee Network in Greater Manchester, has seen passenger numbers grow by 5% since it was launched last September, with revenue following suit, and improving reliability. This was the picture described by the new Transport Secretary, Louise Haigh, on a visit to Greater Manchester last week designed to signal the government’s “bus revolution” with the pledge to support every community taking back control of buses through franchising or public ownership.

She met with the Mayor of Greater Manchester, Andy Burnham, to discuss how the area’s Bee Network can be replicated across the country “to deliver better services, grow passenger numbers and drive opportunity to under-served regions.” The Bee Network is also boosting Manchester’s Metrolink, Haigh said. In May, it had recorded its busiest month in its 32-year history with 4.1 million passengers using the trams, higher than the previous record of 4 million set before the pandemic in 2019.

Up to now Transport for Greater Manchester has been loathe to provide detailed comparative figures on the performance of services and relative costs before and after the franchsing changes came in. This is being done in three area tranches , two of which are underway and the third, accounting for around 50% of bus services in the conurbation will start operation on 5 January 2025.The existing large bus groups Go-Ahead, Stagecoach and First won most of the first two tranches and Metroline will operate four of the five large local service contracts awarded under the third and final tranche.

A bus industry source expressed scepticsm about the basis of the increased patronage, revenue and reliability claims, as no specific figures were available despite this now being an area of direct local authority finacial responsibility.

“If it is only a 5% rise, considering the extra buses added to the network and the cheap fares, it is arguably a relative failure,” they said. There had not been any numbers either “on the cost of all this to the authority. There are still lots of agency drivers being employed in tranche 1, due to the transfers of operations and TfGM has had to buy and own buses and depots to ensure services can operate”. It had been claimed by Mayor Burnham that the franchise bids were lower than expected and revenue higher, but this was not detailed, nor represented the full picture.

Another industry source thought operators could have initially put in cheap bids to win the work, but later to prove unsustainable.” There’s plenty of examples in London, and on the railways, of unsustainable bids leading to disaster.” Pre franchising several of the GM operators were losing money on their areas, but now have had the chance to bid tenders to keep them profitable, he said. One was thought to be making money on its territory, but has lost out now.

“The franchising model in Manchester has meanwhile seemed to be killing off most small operators”, who might be needed later on said the source. “If the outcome is a problem, all of this is going to end up being ultimately funded by DfT.

As with London contracts, TfGM takes the revenue risk, but operators determine what the cost of supply they need to be paid for operating a depot and buses and staff for a five-year franchise, a proposition that only works for large multi depot operators with a spread of activities which they can switch resources, bus industry experts say.

Under the large contracts it has won for the final tranche, ComfortDelGro subsidiary Metroline will take over operations from depots at Ashton-under-Lyne, Hyde Road to the south-east of Manchester city centre, Sharston, and Wythenshawe, in the New Year. Stagecoach will assume the large Stockport franchise. It is already the dominant operator in that town. Rotala subsidiary Diamond Bus North West has gained three of the four small contracts, with Go North West chosen for the fourth.

As well as taking responsibility for the franchise operating costs, and securing the revenues- and thus covering any deficits- the franchise arrangements have meant Greater Manchester funding the acquisition of depots and other overheads. There has been little information made available on the net overall cost to transport authorities in switching to the franchise model of service provision.

On her visit the Transport Secretary said she wanted to hear directly the challenges faced by Greater Manchester during its franchising journey including “a 6-year slog to deliver local control of bus services due to unnecessary barriers. The government’s plan will remove these barriers so better buses can be delivered faster.

The Transport Secretary pledged “to create and save vital bus routes up and down the country, calling time on the failed system of deregulation that has seen service levels plummet. The plans will also bring an end to the postcode lottery of bus services by providing safeguards over local networks across the country.”

Haigh said: “Buses are the lifeblood of communities, but the system is broken. Too often, passengers are left waiting hours for buses that don’t turn up – and some have been cut off altogether. Change starts now.

“This new government will give local leaders the tools they need to deliver better buses up and down the country. Our plan will create and save vital bus routes by giving every community the power to take back control of their bus services through franchising or public ownership. We are already seeing how the Bee Network is delivering for people across Greater Manchester – we will ensure every community can enjoy the same benefits.”

LTT’s industry source commented: “As well as getting full figures from Manchester, the Government, or one of the regulators or audit bodies, should be analysing the position in Cornwall which was given loads of BSIP money for a massively increased tendered network and cheap fares, but again no figures have been made available. I’m sceptical this has achieved good value. Surely Chancellor Rachel Reeves, if not Louise Haigh, should be looking at this before it gets rolled out elsewhere?”

Andy Burnham said: “The figures speak for themselves. Properly integrated public transport is the key to unlocking growth and opportunity across our city region. Our Bee Network now has more passengers than ever before”.