Renewed fears over 'crucial' bus routes when pandemic funding ends

It has been estimated the West Midlands Combined Authority (WMCA) could be called on to provide up to an extra £50 million if funding from the Government is not extended.

Without it, “less profitable” routes which nevertheless provide “crucial access for many residents” could be put at risk of service cuts from operators.

The Government’s Bus Recovery Grant was provided to operators to cover losses due to reduced passenger numbers during the pandemic, but is due to end at the end of March this year.

It was reported this week that a letter written to the Government by metro mayors including West Midlands mayor Andy Street warned levels of funding for buses are not “adequate” and cited the potential loss of the grant.

Concerns were raised at the WMCA board meeting on Friday as it approved its budget – including a £143.8 million revenue budget for transport delivery.

The meeting heard that a revised budget proposal may be needed later in the year once the Government’s position on the grant is known.

A previous report to the board stated: “It is almost certain that in the face of national Bus Recovery Grant ending, or being reduced, that operators will seek to rationalise their operations in order to remain financially viable meaning that the network faces risks of service cuts, fare increases, or reliance on increased subsidy.

“Operators are already seeking to maintain the most profitable routes, placing less profitable routes (that carry fewer passengers but remain essential for network cohesion and providing crucial access for many residents) at risk.

“Under this scenario, Transport for West Midlands [the combined authority’s transport body] will be required to assess gaps in the network and determine the extent to which subsidy should be provided to maintain services.”

During the WMCA board meeting, Councillor Cathy Bayton chair of the combined authority’s overview and scrutiny committee, spoke on the “real impact” the loss of funding could have.

She said: “From a scrutiny perspective, the one thing we would want to emphasise particularly was our concern around transport and the transport funding from April 7 onwards and the real impact that could have on the forthcoming budget over the next 12 months.

“It would be interesting to know when we will be in a position to know about the Government funding from April 7 onwards.”

Councillor Bob Sleigh, deputy mayor and portfolio lead for finance, said a revised budget proposal could be needed later on in the year.

He said: “Councillor Bayton makes an absolutely critical point. It is the issue of the sustainable funding of public transport, particularly around buses where we find ourselves in the position we are.

“And that risk has been identified and has been discussed on a number of occasions. The sustainability of the funding going forward is critical.

“That is why we do say within the report it might well be we have to bring back a revised proposal later in the year.”

He added that he and Mayor Andy Street were “lobbying constantly” on this matter.

Mr Street said: “I think everyone knows that, because my letter unfortunately ended up in the newspapers on Monday and that got me in a little bit of trouble, but the argument was sound whatever, so there we go.”