Multi-Million Pound Lifeline for West Midlands Bus Network
Millions of pounds are set to be injected into West Midlands bus services to prevent widespread cuts that could cause 'serious social and economic suffering' across the region. The West Midlands Combined Authority (WMCA) Board is expected to approve a crucial funding extension that will safeguard numerous routes from being axed.
Members will vote on continuing the Bus Network Support Grant, which was due to expire on December 31, 2025. If agreed, this financial support scheme for operators will be extended for 15 additional months, running until March 31, 2027.
Subsidies Keeping Buses on the Road
Transport for West Midlands (TfWM) currently provides an annual subsidy of approximately £50 million to maintain bus services across the region. This substantial investment ensures that around 30% of existing bus services continue operating that would otherwise be commercially unviable.
According to a report prepared for the WMCA Board meeting on Friday, November 14, TfWM additionally subsidises approximately 12% of services through tendered contracts. The report emphasised that without ongoing support from January 1, 2026, the bus network faces 'significant service reductions' that would severely impact residents and businesses.
Transition to Franchised System
The funding support has been particularly crucial since the COVID-19 pandemic began, with local bus operators receiving financial assistance to maintain commercial networks. Since 2021, this funding has been devolved to the WMCA through the Integrated Settlement, allowing the authority to implement terms reflecting local requirements.
The continued grants also help stabilise fares during the transition from a deregulated system to a franchised bus network. Complex negotiations are currently underway to establish this new system, with the extended funding intended to provide stability throughout the process.
The report stated: 'Without on-going support, the bus network in the West Midlands will again risk significant service reductions which has the potential to cause serious social and economic suffering for the region's residents and businesses.'
Assuming successful negotiations, the WMCA Board is recommended to approve the continued use of Network Support Grants for the 15-month period, subject to necessary agreements and subsidy control referrals.
