As the UK aims to address long-standing challenges in delivering reliable and affordable public transport, bus franchising is gaining traction as a potential pathway forward. While London’s franchised system has long been regarded as a model of success, much of the country currently operates under a deregulation framework introduced in the 1980s to reduce public spending and encourage competition. This framework included the abolition of Road Service Licensing in 1980 and the implementation of the Transport Act in 1985.
Now, with calls for reform growing louder, and Greater Manchester’s Bee Network spearheading change, could franchising be the answer to improving bus services nationwide?
Deregulation
Outside London, deregulation has created a patchwork of services across the UK where private operators determine routes, timetables and fares based on commercial viability. While this has allowed some profitable routes to flourish, it has also led to a continued withdrawal of services in less lucrative areas, particularly in rural and suburban regions. Indeed, the Department for Transport (DfT) reported that 2,160 bus routes were cut between 2022 and 2023, representing a reduction of almost 20%.
Overall, passengers in deregulated areas often face fragmented networks, higher fares and a lack of service reliability. Operators prioritise high-demand routes, leaving many communities without adequate public transport options. This has exacerbated social inequalities, as those without access to private vehicles struggle to reach jobs, education and healthcare.
To address this ‘postcode lottery of buses’, the nation’s current government has introduced the Bus Services Bill, which will lift the ban on local authorities establishing their own bus companies. This will enable local authorities to take back control of services to prioritise passengers, rather than profitability. The bill will also empower local authorities to work alongside private operators to improve bus services in regions that do not pursue ownership.
In the meantime, the government is directly subsidising single bus fares across the country to help manage high fares, setting a 3 GBP national cap, up from the previous government’s 2 GBP initiative.
The London Model
In the capital, London’s bus network operates under a franchised model overseen by Transport for London (TfL). Routes, timetables and fares are centrally planned, while private operators bid to run services. This system aims to prioritise comprehensive coverage, fare consistency and integration with other transport modes.
In turn, London’s buses see higher passenger satisfaction rates, frequent services and significant investment in modern vehicles, including an expanding fleet of electric buses. The simplicity of a unified fare system, including the Oyster card and contactless payments, has also been key to its success, with fares currently set at 1.75 GBP for unlimited bus journeys within an hour of first tapping in.
However, this success comes at a cost: London’s bus network is heavily subsidised, with public funding playing a crucial role in maintaining its quality and accessibility. Replicating this model elsewhere may therefore not be financially viable without significant levels of investment, especially in areas where population and ridership are less concentrated.
Greater Manchester’s Bee Network
Outside the capital, Greater Manchester’s Bee Network is leading the way in bus franchising, replicating London’s model. With the launch of the Bee Network’s final phase in January 2025, Greater Manchester’s franchised system has brought all buses under local government control for the first time in decades. This scheme aims to deliver more integrated, affordable and reliable services that prioritise local needs.
The positive effects of this transition are reflected in key performance indicators. Ridership has risen, with nearly seven million additional journeys taken in the first year of the franchised system, representing a 5% increase. Passenger satisfaction has also improved thanks to increased reliability. For example, in summer 2024, the punctuality rate for phase one services reached 86.5%, up from 70.5% during the same period before franchising.
Notably, the Bee Network has also exceeded financial expectations, despite reducing fares for passengers. The initial phase of franchising generated over 20 million GBP in revenue during its first year – 3 million GBP more than originally budgeted. This success has been accompanied by operational efficiencies. Indeed, according to Transport for Greater Manchester (TfGM), franchised buses are a third cheaper to operate per kilometre compared to previously tendered services.
These savings have directly impacted the funding strategy for the network. The original planned increase in the Mayoral precept – set at 12.20 GBP for Band D properties in the 2021 business case for the network – has been reduced to 11 GBP. Although this additional tax funding remains necessary to support the continued operation of the network, the Bee Network’s early financial successes highlight the potential of franchising as a viable alternative to the traditional tendering process, particularly in populated city-regions such as Greater Manchester.
Expanding Bus Franchising
Following these positive outcomes in Greater Manchester, regions such as Liverpool CityRegion and West Yorkshire are also exploring franchising, encouraged by the new legislation that facilitates the transition. For example, the West Midlands Combined Authority (WMCA) recently outlined a potential franchising scheme that would see Transport for West Midlands (TfWM) take control of bus fares, timetables and routes while awarding contracts to private bus operators to run them. It is predicted that this transition to a franchised model would cost WMCA 22.5 million GBP over three years.
To support local authorities in making this switch, former UK Transport Secretary Louise Haigh, collaborated with Bee Network officials to explore best practices for replicating the franchised network elsewhere in the country. This initiative examined the legal, operational and logistical challenges that Greater Manchester faced in implementing its system, with it taking the city region six years to regain local control of its bus services, hindered by unnecessary barriers. The government thus aims to eliminate these obstacles, enabling faster and more efficient delivery of improved bus services nationwide.
Alongside legislative support, franchising undoubtedly requires sustained investment in infrastructure and services. Local authorities will need robust planning capabilities and clear lines of accountability to manage franchised networks effectively. Arguably, this demand may surpass available resources in smaller or less populated regions.
As city regions like Greater Manchester lead the way, franchising could mark a turning point in the evolution of UK bus services. However, success will undoubtedly depend on balancing the constraints of public funding with efficient service delivery. For the government to truly end the ‘postcode lottery’ of services, it must ensure that no communities are left behind in the journey towards enhanced public transport.
This article was originally published in the Bus-News magazine.
