Agenda item

Resolved:

That the actions being taken to manage bus service costs in 2023/24 be noted.

That the general approach to the deployment of funds set aside in the Bus Service Improvement Plan award for bus network development be endorsed, and that a Strategic Outline Case be presented to the Committee seeking approval to spend.

Members received a report providing an update on current issues affecting bus services in West Yorkshire and the actions to be taken to mitigate these risks and issues in 2023/24.

Officers noted that as of the present meeting, the government bus recovery grant funding is due to end on 31 March 2023 with no further arrangements announced. Bus operators are required to register any changes to services by Friday 17 February, and have identified cuts to services which are outlined in the report, though are still only the expected outcomes until the changes are confirmed. Discussions are being held between the Combined Authority and bus operators to assess the impact and address future concerns, and the Mayor alongside the other Northern Mayors continue to urge the government for longer term sustainable funding. Members requested to see the full list of affected routes once it has been finalised.

The Combined Authority’s budget is challenged by inflation, requiring rearranging some funding to cover shortages. The transport levy has been frozen for local authorities, however the costs for operators have risen since previous contracts were agreed, and so potential contract renewals are much more expensive. The Combined Authority is seeking value for money and services which deliver for communities, and so it may be necessary to investigate potential funding options and to review the terms of future arrangements. A potential option is to utilise some of the BSIP funding allocation to stabilise the network, with longer-term arrangements to be agreed with members and partners.

Members raised concerns about the withdrawal of services, as well as the lack of clear planning from the government which has left bus operators in a difficult position. The reduction in services is contrary to the ambitions of the region, and members noted that reliable transport is essential to maintain a strong local economy. Officers noted that it is likely that the government will make any announcements in the context of the Spring budget. The conversations will happen in March however the issue of bus funding requires sooner resolution. The Combined Authority and bus operators are working on the assumption of no further funding. Members raised concerns that even if government funding is announced before the cut-off date there will be little time for operators to plan accordingly.

Members noted that the Mayor’s Fares scheme has catalysed an increase in passengers over the last quarter, and that among some demographic there are more day passes being sold than before the pandemic. Cuts will have an impact on communities and also on workers whose jobs may be at risk. Members noted that the services that are cut are likely to affect more isolated communities hardest, and many jobs are 24/7 including healthcare. It is important for operators to have stability so they can attract new drivers, otherwise there is a risk that the service quality will suffer. Members noted that bus networks in other cities have been able to recover their patronage to pre-pandemic levels and even higher in some cases, and so it is clear it is possible with the correct funding and approach.

Members queried if there are any smaller operators seeking to enter the supply chain and fill some of the gaps in service. Officers noted there are fewer in the market due to the lower confidence in the market. Smaller operators are more susceptible to changes in the price of fuel and other price rises. The lower availability of drivers and staff means recruitment is more difficult and so illnesses have a larger impact on service provision. The market used to be attractive to smaller operators as the contract provided stability and flexibility which is now no longer the case. The Combined Authority has adapted its tenders to be more attractive for smaller operators however these have failed to attract appropriate bids.

Members noted that bus operators run fewer buses than they previously would have, which means less cover when vehicles break down. It is more viable to sell a vehicle for a discontinued route, which in turn makes it even more difficult to re-introduce new services quickly. Smaller operators cannot afford to compete with larger operators, and private companies are still aiming for profit more than reliable service.

Resolved:

That the actions being taken to manage bus service costs in 2023/24 be noted.

That the general approach to the deployment of funds set aside in the Bus Service Improvement Plan award for bus network development be endorsed, and that a Strategic Outline Case be presented to the Committee seeking approval to spend.