A TOTAL of £40million has been invested into the region’s bus network to protect it until 2025.
The cash, from Transport for West Midlands (TfWM), will ensure current services continue until the end of next year.
It follows an agreement between TfWM and bus companies, including National Express West Midlands and Diamond Bus.
The deal heads off the immediate threat of around one third of the region’s bus services being withdrawn or frequencies reduced following the ending of Government Covid support funding in June.
Operators have faced increasing cost pressures due to steep rises in fuel, maintenance, and staff costs over the last two years and are struggling to keep buses on the road.
Andy Street, Mayor of the West Midlands, led talks with the bus companies and Government to secure the agreement to protect services.
Under the agreement TfWM, part of the West Midlands Combined Authority (WMCA), has re-allocated part of the region’s £88m Bus Service Improvement Plan grant to keep services running while a long-term sustainable funding solution is found.
This grant, awarded to TfWM by the Department for Transport last year, was to be used on a variety of schemes to encourage more people to use buses – but now approximately £40m will be used to support bus operators to maintain services at their present level.
However, TfWM is still on course to invest in improved bus priority, more electric and hydrogen buses, as well as securing agreements with operators.
The West Midlands has managed to retain the vast majority of its bus routes despite a dramatic drop in usage during and since the pandemic.
The current network is at around 90 per cent of pre-Covid levels – a level many other regions have failed to maintain.
Fares were increased in July – reluctantly say the operators – to reduce cost pressures on bus companies and keep more services running.
The price of a day ticket rose from £4 to £4.50 for example.
Despite this, the region’s bus fares remain among the lowest in the country and remain lower than they were in 2017.
Alex Jensen, CEO National Express UK and Germany said: “We welcome the support from Transport for West Midlands which will ensure we can maintain the bus network at the current level until the end of 2024.
“Our many customers depend on our services every day and we are pleased to confirm they can continue to rely on them.
“Meanwhile we are continuing the investment in electric and zero-emission buses which are both good for the environment and will help keep costs low.
“We will also work closely with our partners to seek a long-term solution to the issues facing the bus industry at the present time.”
This protection is on top of around £16million TfWM spends annually subsidising buses deemed socially necessary but not able to operate on a commercial basis – such as some evening and weekend services or those calling at more remote locations.
There will be a review of contracted bus services during October which could result in some routes being reduced or withdrawn.
Mr Street added; “Buses are the backbone of our public transport network – providing a vital daily service for tens of thousands of local people right across our region at the same time as helping us to tackle the climate emergency and reduce traffic congestion on our roads.
“That’s why we simply could not allow a substantial reduction in services and I personally made the case on behalf of our region during intensive discussions with the likes of National Express West Midlands and Government.”
