Oliver Coppard Lays Out Case For Bus Franchising In South Yorkshire

[SheffieldForum 946]

 

This morning, Oliver Coppard, the South Yorkshire Mayor, held a press conference to announce the imminent start of a new era for our buses. He’s chomping at the bit to see them “franchised” — a change that would give him far more control over the system and hopefully save the tax-payer money — and hopes to have the central government’s final agreement for this change before the end of this year.

 

Coppard called today’s conference because the MCA has just got a lengthy — and very costly — step on the road to franchising done and dusted. South Yorkshire’s Franchising Assessment, which sets out why the MCA think it’s the best option, is now complete. 

 

Full details at The Tribune here.

 

(Photo credit: The Tribune / Daniel Timms)

[RollingJ 2,048]

11 minutes ago, SheffieldForum said:

 

This morning, Oliver Coppard, the South Yorkshire Mayor, held a press conference to announce the imminent start of a new era for our buses. He’s chomping at the bit to see them “franchised” — a change that would give him far more control over the system and hopefully save the tax-payer money — and hopes to have the central government’s final agreement for this change before the end of this year.
 

Full details at The Tribune here.

 

(Photo credit: The Tribune / Daniel Timms)

So, just one question for now - where is all the money going to come from for SYMCA to buy all these new buses - currently, the operators buy (or lease) them, maintain and garage them.

[Michael_N 36]

But what they fail to state is, although 25% of the current bus network is contracted (an increase mainly due to the remnants of the pandemic etc.) where is the extra funding going to come from? Will the 4 local councils agree to a large increase in the local transport levy that, will to you and me, be an increase in local council tax payments. Barnsley and Doncaster councils have already openly said they want franchising, but with no increase in cost to taxpayers... Well I'm afraid you can't have it both ways!

 

So the main question should be - would you support up to an additional 5% increase in council tax to fund the proposed local bus/tram network across SY?

 

Not to mention - Oliver Coppout is up for re-election in May. So we may just see a new mayor taking the reigns of SYMCA.

[RollingJ 2,048]

More  of my thoughts exactly, @Michael_N.

[RollingJ 2,048]

Having read the original post again - just how does it 'save the taxpayer money'??

[SheffieldForum 946]

15 minutes ago, RollingJ said:

So, just one question for now - where is all the money going to come from for SYMCA to buy all these new buses - currently, the operators buy (or lease) them, maintain and garage them.

 

2 minutes ago, Michael_N said:

But what they fail to state is, although 25% of the current bus network is contracted (an increase mainly due to the remnants of the pandemic etc.) where is the extra funding going to come from? Will the 4 local councils agree to a large increase in the local transport levy that, will to you and me, be an increase in local council tax payments. Barnsley and Doncaster councils have already openly said they want franchising, but with no increase in cost to taxpayers... Well I'm afraid you can't have it both ways!

 

So the main question should be - would you support up to an additional 5% increase in council tax to fund the proposed local bus/tram network across SY?

 

Not to mention - Oliver Coppout is up for re-election in May. So we may just see a new mayor taking the reigns of SYMCA.

I think the case is being made for government to give more central funding - South Yorkshire currently receives less than a third of funding per head for public transport than the West Midlands (and even less in comparison to Manchester).

 

The case being drawn up suggests that the services will be more profitable as a MCA owned and franchised service than it currently is.

 

Remember, I've only copied a couple of paragraphs from the article to be fair to The Tribune, there's more information there (and there will be more information in the actual report).

 

 

[RollingJ 2,048]

@SheffieldForumIf the SYMCA is going to own all the buses, it is going to cost them in the region of £250,000/£300,000 per vehicle to buy outright, and I don't know the leasing costs - but they will be very considerable, so I ask again - where is the money coming from and how does it 'save the taxpayer money'?

 

[Irene Swaine 1,072]

No. Oliver Coppard, leave our buses alone. The bus companies know how to best run a service. The bus companies know what works and what doesn't. Stop meddling.

[SheffieldForum 946]

Just now, RollingJ said:

@SheffieldForumIf the SYMCA is going to own all the buses, it is going to cost them in the region of £250,000/£300,000 per vehicle to buy outright, and I don't know the leasing costs - but they will be very considerable, so I ask again - where is the money coming from and how does it 'save the taxpayer money'?

 

We're currently paying around a quarter of what public transport in the region costs without owning the fleet, so maybe it is from that? Or from an increase in central government funding for  local public transport? Or perhaps a case as been made to create the investment based on the potential profitability of the service once brought under MCA control and franchised?

 

Or maybe a mix of those and more?

 

I wasn't there personally this morning and haven't seen the report (I'd love to see it!), so I don't definitively know.

 

BUT - if the service could be made profitable and generate income to cover those costs after 'x' years, as well as provide subsidies for lesser profitable but necessary routes, isn't that an investment that is worth it?

[RollingJ 2,048]

1 minute ago, SheffieldForum said:

We're currently paying around a quarter of what public transport in the region costs without owning the fleet, so maybe it is from that? Or from an increase in central government funding for  local public transport? Or perhaps a case as been made to create the investment based on the potential profitability of the service once brought under MCA control and franchised?

 

Or maybe a mix of those and more?

 

I wasn't there personally this morning and haven't seen the report (I'd love to see it!), so I don't definitively know.

 

BUT - if the service could be made profitable and generate income to cover those costs after 'x' years, as well as provide subsidies for lesser profitable but necessary routes, isn't that an investment that is worth it?

It is a massive BUT - I go back to TfL - how many Billions have they been bailed out for - so far - and they've been 'running' the service, for want of a better term for god knows how many years?

[SheffieldForum 946]

More information from the MCA Press Release:

 

South Yorkshire’s Mayor, Oliver Coppard, has welcomed the conclusion of the Franchising Assessment which states that buses in the region should be taken back under public control with depots and fleet owned by the Mayoral Combined Authority (MCA) as the preferred option, paving the way for a radical transformation of bus services as quickly and legally as possible.

 

The Franchising Assessment report is subject to approval at an MCA Board meeting on 12 March 2024. If it is approved, the next step is for the MCA to obtain a report from an independent auditor in order to proceed with the Franchising Scheme. Then a 12-week public consultation must be run ensure that local passengers, businesses and transport providers can have their say before the MCA takes the decision as to whether to implement the Scheme.

 

Mayor Coppard has been committed to bus reform since day one of being elected, with feedback from 30 public meetings on bus services across all four boroughs in South Yorkshire telling him the current system is not working for them.

 

Radical transformation

 

South Yorkshire’s Mayor, Oliver Coppard, said: “At next week’s MCA Board meeting, we will be taking a big decision about the future of our buses; the next big step towards radically transforming how buses work in South Yorkshire.

 

“Because right now our bus services are in a spiral of decline. That’s not just a disaster for our economy, or our environment, it’s denying opportunity to people right across our communities.

 

“That’s why I have always been committed to radically improving our public transport network; because ultimately if we want people to stay near and go far in South Yorkshire, we need a better public transport system. We are already getting the tram back under public control, and now this is another huge step towards us getting better buses and getting back the world class bus system we once had.

 

“Having seen the full Franchising Assessment, I believe the assessment shows that bus franchising – taking buses back into public control, so we make all the major decisions not private bus companies – is the best way to do just that; to radically transform how our buses work, and to deliver the services we deserve. Next week’s meeting will allow us to take the next big step towards bus reform and if the MCA Board agree, we will then move to an independent audit; the next stage in the process.

 

“I want us to have nothing less than a world class, fully integrated public transport system connecting up our buses, trams, trains and active travel routes, so we can give everybody choice and freedom about how to travel and move across South Yorkshire.”

 

Strategic control

 

The bus market in South Yorkshire has been experiencing a continuous cycle of decline while its reliance on public funding to sustain bus service levels has been increasing:

• Over the past decade, bus mileage declined by 42%.
• In 2012/13, 13% of the bus network mileage was supported by public funding. By 2022/23 this had grown to 20%.
• For 2023/24, the forecast is that the proportion of publicly supported buses will increase further to 24%, which is being enabled by the MCA investing one-off reserves to maintain and stabilise service levels.

Bus services have become less frequent, less reliable and operated by an ageing fleet of buses. South Yorkshire’s buses on average are 11.5 years old (the national average is 8 years) against a life expectancy of 15 years. Investment to renew the ageing bus fleet is required urgently from an economic perspective, but also to achieve net zero aims for South Yorkshire, to reduce pollution and improve the health of residents.

 

In terms of investment to improve bus services, South Yorkshire receives just over £10 per head of population of government funding towards buses while West Yorkshire receives nearly £40 per head. Greater Manchester gets £39 per head and West Midlands £36 per head. On top of this, South Yorkshire received £0 from the first round of the government’s Bus Service Improvement Plan funding, and it was the only MCA not to receive anything.

 

Through a Franchising Scheme, the MCA would have strategic control of the bus network in South Yorkshire, and the flexibility to make changes within a more sustainable investment model and reinvesting revenue into growing the bus network.

 

Greater impact

 

In turn this could help improve punctuality, reliability, consistency of standards and accessibility, giving the MCA stronger contractual levers to do this, and could contribute to improving bus patronage.

 

Franchising could also have a greater impact on addressing the existing challenges around fare and ticketing complexity, as fares policy would solely reside with the MCA in this model.

 

In terms of the financial implications of franchising, the Assessment notes that it will require significant capital investment to procure depots and renew the bus fleet as well as funding to support the transition period. It also requires ongoing revenue support which will be achieved by raising income through the transport levy, the element of which funds bus activity, would need to be inflation linked (RPI +1% from 2030 onwards). These financing methods are making the franchising option affordable and able to generate a surplus that can be used to support a further cycle of fleet investment needs.

 

South Yorkshire’s Franchising Assessment is clear that the MCA taking control of the depots and fleets is affordable and value for money and the best option it considered which also included assessing the current model of Enhanced Partnership and Enhanced Partnership Plus.

 

Under the preferred franchising model, the MCA would make the depots and fleet available to bidders for the relevant franchise lots, to be used for franchise contracts under the contract terms.

 

The MCA would acquire the legacy fleet from incumbent operators. They would also be responsible for financing, funding, procuring and delivering enhancements to the depots and fleet, with the operators being responsible for routine maintenance of the fleet and depots. This option opens up access to new entrants to South Yorkshire’s bus market and encourage financially competitive bids.

[SheffieldForum 946]

Just now, SheffieldForum said:

In terms of the financial implications of franchising, the Assessment notes that it will require significant capital investment to procure depots and renew the bus fleet as well as funding to support the transition period. It also requires ongoing revenue support which will be achieved by raising income through the transport levy, the element of which funds bus activity, would need to be inflation linked (RPI +1% from 2030 onwards). These financing methods are making the franchising option affordable and able to generate a surplus that can be used to support a further cycle of fleet investment needs.

 

South Yorkshire’s Franchising Assessment is clear that the MCA taking control of the depots and fleets is affordable and value for money and the best option it considered which also included assessing the current model of Enhanced Partnership and Enhanced Partnership Plus.

 

Under the preferred franchising model, the MCA would make the depots and fleet available to bidders for the relevant franchise lots, to be used for franchise contracts under the contract terms.

 

The MCA would acquire the legacy fleet from incumbent operators. They would also be responsible for financing, funding, procuring and delivering enhancements to the depots and fleet, with the operators being responsible for routine maintenance of the fleet and depots. This option opens up access to new entrants to South Yorkshire’s bus market and encourage financially competitive bids.

So, that's a bit more info on finances...