West Midlands Bus operator grant to be extended
A new funding deal to stop a number of West Midlands bus services being cut is expected to be agreed later this month.
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West Midlands Combined Authority’s (WMCA) Board are expected to approve an extension of the Bus Network Support Grant which provides financial support to operators.
If agreed, the existing agreement will be extended from April 1 to April 30 before a new arrangement is put in place covering May 1 to December 31.
The item will also be discussed by the WMCA’s Transport Delivery Overview & Scrutiny Committee prior to it going to the board.
A report to the committee said more than 30 per cent of current commercially operated routes would be put at risk without the funding while fares would face bigger hikes.
It also said that work was still being done to establish the level of funding required for the proposed grant.
But, when setting out his bid for moving to a bus franchise system from the current deregulated model, West Midlands Mayor Richard Parker said the authority provides around £50 million in grants a year to operators.
The report said: “Since the start of the Covid-19 pandemic Local Bus Operators have been financially supported through national and local funding to maintain their commercial bus networks.
“In the West Midlands, this funding has been devolved enabling WMCA to implement its own Terms and Conditions to reflect local requirements.
“Without this funding operators have indicated that up to 33.6 per cent of all commercially operated local bus services could be at risk from 1 April 2025 and that fares would increase by between 20-25 per cent giving rise to further cost pressures on some of the most vulnerable residents within the region.
“The business case for continued support of the bus network sets out that over 33 per cent of commercial bus mileage remains at risk of de-registration. This is a reduction from 36 per cent in June 2023.
“This agreement is required to prevent operators from registering service reductions to take effect from 28 April 2025 and to continue to adhere to the index-linked fares review mechanism in the West Midlands Enhanced Partnership.
“To do this the WMCA Board is requested to approve the continued use of Network Support Grants for the period from 1 April 2025 to 31 December 2025 inclusive during which time the WMCA Board will make further recommendations leading to a Mayoral decision regarding Bus Franchising in May 2025."
