Bus Reform – To franchise or build partnerships? Has the Labour government levelled the playing field?

The new government has just launched its first initiatives in the important area of reform of local bus services with a route to franchising bus services opened up to all local authorities with transport functions. At the same time the option of bus partnerships as an alternative to franchising is receiving a bit of a refresh.

Almost all local authorities overseeing transport have in place Enhanced Partnerships (EPs for short) with their bus operators. EPs work on the basis that each participant – the local authority and the bus operators - make commitments to improve bus services.

Authorities are now expected to spend serious time working with operators to see how reform can be achieved through the EP before embarking upon an assessment of the franchising option. A more prescriptive approach to this process is envisaged. Here is the detail and, needless to say, it raises questions.

The three month EP window

A three month window will exist to establish the terms of any enhancements to the existing EP. The Authority will trigger this time period by making an order indicating its intention to carry out a franchising assessment. There is no reason why it cannot take forward discussions of this kind without bringing franchising into play and triggering that tight three month window of opportunity, but that would be outside of a process that could lead to franchising as the preferred option.

Three months may seem a generous period but will the government set out guidance on how that time is spent both at pace and wisely?

Speedy implementation of the EP if the outcome of the process works for the Authority

EPs lead to the creation of statutory schemes that document legally enforceable commitments on the part of the Authority and operators. It might involve a programme of infrastructure improvements – particularly to reduce road congestion, or a dedicated website for local bus service information committed to by the Authority. In return operators might agree multi-operator ticket acceptance, improved training of staff and commitments to higher vehicle environmental standards.

A draft of the revised guidance clearly appears to encourage Authorities to take the EP route to reform seriously. Where an authority decides to adopt this approach we are told by this guidance that the Scheme in agreed form should come into effect immediately – saving the Authority the expense of pursuing the franchising route to reform.

But it’s questionable what this means in practice. Current legislation provides for consultation processes unless the detail agreed largely represents modifications to an existing Scheme. More radical reforms will, under existing legislation, require a process of consultation to come into play before the revised Scheme can be implemented. These consultations take time to complete – will the the CMA, other consultees and bus users themselves lose the opportunity to express views and secure changes to the Scheme detail in the interests of immediate implementation?

EPs need to be taken seriously

There is a growing recognition that bus franchising takes time to complete. A three year period from the point at which the decision to proceed is taken to the date the first franchised services depart is a typical timescale. And the process is usually extended by decisions to implement across a large region in phases. Bus operators are in complete agreement that improvements are necessary – and want to see these happen quickly. In the several franchising processes that have progressed so far – such as Manchester, Liverpool City Region and West Yorkshire (the latter two yet to start the procurement process) operators were at pains to demonstrate their willingness to implement service improvements at speed. Franchising can also cause operators to hold back on investment decisions due to the uncertainties created as to the role they will continue to have in their operational areas.

The increased profile provided for EPs in the governments plans for reform are welcome but we need to see more detail of how reforming the underlying legislation will help the case for this more rapid route to improving services.