Question to the Department for Transport:

To ask the Secretary of State for Transport, whether she has made an assessment of the financial (a) risk and (b) cost to councils of controlling bus franchising.

As part of the bus franchising process, local transport authorities (LTAs) must develop a robust assessment of all elements of a move to franchising. This assessment requires LTAs to demonstrate a financial and economic case for franchising in their area which considers whether the authority would be able to afford to make and operate the scheme, and whether the scheme represents value for money.

There is no one size fits all approach to bus franchising, and the cost of bus franchising and level of financial risk to LTAs will vary depending on the individual area and the model of franchising that LTAs wish to pursue.

Government is working to provide more active support to LTAs, and is developing a tailored programme of support for LTAs wishing to franchise. In addition, work will continue to reduce the cost of franchising to help make it more accessible to LTAs. My Department is also engaging with LTAs and bus operators to identify potential alternative models of franchising to those pursued by Greater Manchester and other Mayoral Combined Authorities.

At the Spending Review, the Government announced funding for bus franchising pilots, including in York and North Yorkshire and Cheshire West and Chester as part of additional funding to maintain and improve bus services from 26/27 onwards.