A vital funding agreement that will prevent widespread cuts to bus services across the West Midlands is expected to be formally approved this week.
Board Set to Approve Crucial Funding Extension
Members of the West Midlands Combined Authority (WMCA) Board are preparing to vote on the extension of the Bus Network Support Grant when they meet on Friday, November 14. This financial lifeline for bus operators is currently due to expire on December 31, 2025.
If given the green light, the scheme will be extended for a further 15 months, continuing until March 31, 2027. This continued support is deemed essential to avoid what officials warn would be significant service reductions from the start of January 2026.
The Financial Backbone of Local Bus Services
The scale of public subsidy required to maintain the current bus network is substantial. Transport for West Midlands (TfWM) provides an annual subsidy of approximately £50 million to ensure around 30 per cent of all bus services continue to operate.
A report prepared for the Board meeting reveals that TfWM provides an additional subsidy for a further 12 per cent of services through tendered contracts. This means a large portion of the region's bus network is not commercially viable without financial support.
Averting Social and Economic Suffering
The report presented to the Board outlines the severe consequences of allowing the funding to lapse. It states that without ongoing support, the region would face an unstable network and steeper fare increases.
This instability has the potential to cause serious social and economic suffering for residents and businesses alike, particularly as the region navigates the complex transition from a deregulated system to a franchised bus network.
The funding, which is primarily derived from additional Government grants, has also been used to optimise the network and stabilise services in preparation for the new franchised system. The report confirms that complex negotiations for this transition are currently underway.
By extending the Bus Network Support Grant, authorities aim to mitigate significant commercial fare increases and maintain service stability for passengers during this period of major structural change for West Midlands transport.
