A smarter route to better buses for Wales

Aaron Hill - CPT Cymru Director

In September, the Senedd voted resoundingly to support the general principles of the Bus Services (Wales) Bill.

The bill represents one of the most significant changes in decades to the way bus services are delivered in Wales.

The ambition is clear: more frequent, more efficient and better- connected bus networks that help more people choose to travel by public transport.

These are aims we wholeheartedly share at CPT Cymru. However, as the Senedd’s Climate Change Committee considers Stage 2 of the Bill this week, Members of the Senedd must carefully consider whether this legislation can deliver on those promises.

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Funding gaps

Throughout the Bill’s early scrutiny, bus operators, local authorities, and passenger groups raised consistent concerns that a one-size-fits-all franchising model will not be financially sustainable.

Both areas of the UK currently operating the gross-cost bus franchise model that has been proposed by Welsh Government face major funding gaps between the cost of services and fare revenues — more than £700m annually in London and around £100m per year in Greater Manchester.

With the Welsh Government facing unprecedented financial pressures, the current Bill risks placing an undeliverable burden on future budgets.

For bus reform to work, it must be shaped around the needs of local communities and tested rigorously for value for money before rollout. One size will not fit all.

We urge the Welsh Government and Transport for Wales to shape a more balanced
framework for reform — one that empowers regions to choose the delivery model that best suits their needs.

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Value

True partnership between government and operators will deliver better outcomes for passengers and better value for the public purse.

In some areas, franchising may indeed offer the best solution. But in others, alternative models may deliver better results for passengers.

This is a once-in-a-generation decision, and it is vital that we get it right.

There are many examples across the border where growth and innovation have been achieved without franchising.

Across areas like Norfolk and Portsmouth passenger numbers have risen and important progress has been made towards decarbonisation targets.

Similarly, Leicester has even managed the introduction of free city-centre bus services.

These successes remind us that good outcomes depend more on effective local delivery than on any single regulatory model.

In addition to this, there is an opportunity for the Bill to be strengthened with mechanisms that ensure taxpayers get value for money for their investment in bus services, as well as ensuring that municipal and small bus operators have a fair chance to run services under the new network.

It is also essential that Bus Reform doesn’t ignore the issue of bus speeds.

Passengers have very clear priorities: buses that are reliable, affordable, and take them where they need to go quickly. The best way to deliver that is by tackling congestion.

If local authorities can speed up bus journeys, co-ordinate roadworks, and prioritise buses on our roads, everyone benefits.

A 10% increase in bus speeds could generate 1.5 million extra journeys a year in Wales, creating a virtuous circle that allows operators to reinvest in better services and zero-emission vehicles, cutting both congestion and pollution.

Opposition Members have already recognised some of these concerns, tabling amendments that would require the Bill to give greater consideration to value for money, congestion, infrastructure, and accessibility.

This is a welcome step forward, but we need Welsh Government to listen to these concerns and act.

We now urge the Climate Change Committee to go further: before franchising is rolled out, every region in Wales should undertake a value-for-money assessment of franchising and explore alternative models that could achieve better outcomes for passengers with less risk for taxpayers.

We all want a stronger, greener, more passenger-focused bus network for Wales.

But achieving that vision means giving local communities the freedom to choose the model that works best for them and ensuring that every pound spent delivers the best possible return for passengers.