Nottingham City Transport proves publicly-owned approach ‘can work’, minister says
Five of the buses on display in Old Market Square on Friday.
By Joe Locker, Local Democracy Reporter
A minister says the Government is scrapping a national ban on council-run bus companies after Nottingham City Transport’s success ‘proved the approach can work’.
In the 1980s most public bus services outside London were deregulated and privatised, leading to the mass sale of council-run bus companies.
While metropolitan mayors were later given franchising powers in 2017, giving them greater control over the private firms that now operated them, councils were at the same time banned from setting up bus companies themselves.
One of the outliers was Nottingham City Transport, NCT, which managed to stay largely in the hands of Nottingham City Council and the public.
The Labour-led council continues to be the majority shareholder, despite Transdev, the UK arm of the French multi-national transport operator, acquiring an effective 18 per cent stake in the company in 2000.
NCT is not profit-driven, and typically aims for a margin between five and eight per cent each year, with much of this going back into services.
It was named UK Bus Operator of the Year for a record-breaking sixth time in February, boasting a 94 per cent passenger satisfaction rating for the way in which it operates frequent and punctual services.
Simon Lightwood, the parliamentary under-secretary of state for transport, spoke in a video presentation at a bus industry conference, hosted by NCT between May 12 and May 14, about the Government’s plans to improve services.
He said the Bus Services Bill, which is currently going through Parliament, includes a raft of measures, including mandatory disability training, giving local authorities powers to create by-laws to tackle anti-social behaviour, and repealing a ban on council-run bus companies.
“While empowering local leaders to deliver the services their communities deserve, whether that is through franchising, strengthening, or enhancing partnerships, or local authority bus companies, that doesn’t mean Government can, or will, put its feet up,” he said.
“Government has wasted no time on repealing the ideological ban on municipal bus companies. Nottingham City Transport has been named the UK bus operator of the year for an impressive and deserved six times, proving this approach can work.”
While franchising models are today operated under some regional mayoral authorities, including in Liverpool and Manchester, there have been fears tampering with NCT’s success under the East Midlands’ newly-established mayoral authority – the East Midlands Combined County Authority (EMCCA) – may hinder its success.
EMCCA will take on the transport function from all four councils it encompasses in April next year.
NCT’s managing director, David Astill, has staunchly opposed any franchising arrangement under EMCCA, which is led by Labour Mayor Claire Ward.
Mr Astill told the Local Democracy Reporting Service franchising would prove an “existential threat” to NCT.
He said franchising poses a threat to Small and Medium-sized Enterprises (SMEs), that can lose out to larger bus companies when bidding for contracts.
But speaking at the conference, held at the East Midlands Conference Centre in Nottingham, Ms Ward confirmed her support for partnerships.
“I’ve made it very clear we will start with enhanced partnerships and we will make those work,” she said.
“There will always be the opportunity to take a different path towards franchising, but I believe we can make enhanced partnerships a regional transport system that works for all.”
Ms Ward said she wants to create a “truly regional network” by improving ticketing, the transport network itself, and its infrastructure.
“As much as people want buses to be affordable, they also want to pay for them in a way that makes sense,” she added.
“As we move from four networks to one, making travel feel seamless, logical and flexible, it is a priority for me and for EMCCA.”
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