West Midlands Mayor unveils plans for key bus franchising campaign pledge

Newly elected West Midlands Mayor Richard Parker has given more details on his plans for franchising bus services in the region.

Bus services in the West Midlands are currently run by private companies under the current “enhanced partnership” system. These entities must adhere to some binding commitments set by the West Midlands Combined Authority (WMCA), such as displaying bus information at bus stops.

WMCA, which oversees Transport for West Midlands (TfWM), provided £75m in subsidies to such contractors during the last 18 months.

Now, Mayor Parker, the new leader of WMCA, has described the transport system as “unsustainable”, having campaigned extensively on the issue.

Under a franchise system, any operating surplus generated will be invested back into the system to improve services and keep fares down

Richard Parker, West Midlands Mayor

He said the current system is “not delivering for communities or businesses across the region” because surpluses made by private operators are distributed to shareholders in dividends.

He has directed officials to present a proposal detailing a transition towards a franchised model to WMCA in July, as the current subsidy agreement expires in January 2025.

The change would empower TfWM to oversee route planning, fare structures, and service frequencies, thereby enhancing service reliability and affordability.

He explained: “Under a franchise system, any operating surplus generated will be invested back into the system to improve services and keep fares down.”

A review commissioned by the WMCA assessing the financial implications of introducing franchising will be published after Parker’s proposal is submitted, followed by an audit and consultation process.

The transition to a franchising model is estimated to take two years and cost £25 million. Manchester, run by a similar authority, has spent £143m on franchising,

Mr Parker defeated incumbent Conservative Andy Street by a margin of just 0.3% of the vote in the May local elections this year. Bus franchising was a key part of policy debates during the campaign.

Andy Street, the Conservative former mayor, argued […] it was “too easy to say public control solves all problems”

“Bring buses back into public control” was one of five pledges by Parker, who aimed to “build a London-style integrated transport network” with affordable fares, reliable services, improved safety, and engagement with local communities.

Andy Street, the Conservative former mayor, argued that the West Midlands has already had the lowest fares in the country, and that it was “too easy to say public control solves all problems”.

The Liberal Democrat and Green Party candidates also supported franchising, whereas Reform UK suggested improving the efficiency of bus services within the existing system.

Pete Bond, Director of Integrated Network Services for TfWM, said: “What we’re looking at is whether it can provide better value for money for taxpayers under a regulated system than a deregulated system.”