Herefordshire Council is considering franchiseing its own nationwide bus service.
HerefordshireLive has been told that this option is being explored as a solution to low service coverage across the county and instability in the local bus market.
Although local government regulations prevent councils from running bus services directly, Herefordshire Council is said to be examining recent changes to this regulation for the extent of the ‘fine print’ to set up a franchised service which it can control.
Read more: Key Hereford bus services cut as operator steps up
On this basis, council officials were empowered to analyze whether the council could franchise a service, how, at what cost and with what funding.
As HerefordshireLive has learned, this work is still at a very early stage.
The Council’s official position is that it is unwilling to go public with the full details of its franchising intentions.
However, an amendment to the contract on bus-related consultancy work has been agreed – at a cost of £16,740. – Assessment of bus franchising as part of the Council’s response to NBS.
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Last month, key county bus services were bailed out – for now – when an operator stepped in to restore routes another operator had scrapped as unprofitable.
The Council is currently awaiting a decision from the Department for Transport on its £18.3 million funding offer as part of a new National Buses Strategy (NBS).
The Herefordshire Bus Service Improvement Plan (BSIP), backed at Cabinet level, calls for £8.345m over three years and £3.245m per year thereafter to cover the cost of completely redesigning the county’s entire bus network from scratch and the improve service levels.
Herefordshire Council has carried out a number of public consultations over the last few years to gather opinions on bus and local transport services.
However, the BSIP acknowledges that these have focused more on guiding future spending priorities for bus services than on network transformation.
It also acknowledges the network’s failure to attract paying adults, with concession ticket holders representing the largest single user group on the network – based on 2019 numbers.
The current Herefordshire network has developed incrementally over a number of years, often in response to reduced subsidies or commercial pressures and falling revenues.
BSIP acknowledges that this has resulted in fragmented services and inconsistencies that require “extensive review”.
According to the BSIP roadmap, delivery of a new network could start as early as 2022/23.
The Council’s current approach to services is to build a “reinforced partnership” with local bus operators.
But with most local transport authorities – in line with government guidelines – developing increased partnerships, Herefordshire Council is keen to further explore the possibility of franchising.
This is the option HerefordshireLive has been told is being considered.
Technically, enhanced partnerships through BSIP are a way for the Council to gain an element of control and oversight through voluntary action.
But voluntary partnerships are seen as fragile – and should they fail, franchising is an option.
Bus deregulation in 1986 prevented city councils from operating or controlling local bus services – with the exception of London.
Some councils responded by creating stand-alone, not-for-profit transport companies, but this option was ruled out.
There was a recent rule change that gives mayoral agencies the option to franchise.
That means not running their own services, but directly controlling local bus companies to run a council-controlled service – where the council can dictate frequencies and fares.
Within this rule change there is wording which appears to suggest that non-mayoral authorities – such as Herefordshire Council – may be considered if they wish to apply to become a franchise authority on a case-by-case basis.
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