Mayor Richard Parker and the West Midlands Combined Authority have approved plans to franchise the region’s bus network from 2027

 
Richard Parker visited Wolverhampton Bus Station following the decision

 
By Andrew Garnett

Bus services in the West Midlands will be brought back under public control for the first time in nearly four decades, following a formal decision by mayor Richard Parker and the West Midlands Combined Authority (WMCA) to introduce bus franchising.

The decision makes the West Midlands the sixth area in England to adopt bus franchising, following Greater Manchester, the Liverpool City Region, West Yorkshire, South Yorkshire, and Cambridgeshire and Peterborough.

A consultation held earlier in 2025 found that 75% of respondents, including a majority of bus operators and local councils, supported the plans.

With buses accounting for eight out of every ten public transport journeys in the region, the franchising decision is seen as central to efforts to reduce traffic congestion and improve air quality. Transport for West Midlands (TfWM)  has also said it will back franchising with investment in bus priority.

Under the new franchising model, TfWM will design the network and contract operators to run services on its behalf.

For too long, our buses have been run for private profits, not public good

The transition will begin in late 2027 with initial routes – potentially including a proposed Sprint service between Walsall and Solihull – and will be phased in over three years. Full implementation is expected by the end of 2029.

“For too long, our buses have been run for private profits, not public good,” said Parker, speaking after the combined authority meeting that approved the plans. “Today, that changes.

“The public have been clear – they want a better bus service under public control, and I’ve heard them loud and clear. I promised to take back control of our buses – and today’s decision shows we’re delivering on that promise.”

Transitional costs revealed

WMCA has said it will provide more detailed implementation plans later this year, but what has been confirmed is that the region will be divided into nine local franchises, rolling out three per year between 2027 and 2029.

In addition to these larger contracts, the combined authority intends to offer smaller single-route tenders in order to encourage bids from smaller independent bus operators.

The authority has budgeted £22.5m over three years to set up the new network. This figure includes:

  • £1.5m for branding and identity development;
  • £2.5m for commercial development and network planning;
  • £2.0m for franchise management systems and staffing;
  • £1.5m for legal services;
  • £2.5m for a public launch campaign;
  • £5.0m for operational continuity and mobilisation; and
  • £6.3m for consultancy, modelling, and other advisory costs.

Portions of this budget will be covered through a combination of grant funding and borrowing. In 2025–26, up to £4m will be funded through Bus Service Improvement Plan (BSIP) grants. The remaining set-up costs (£9.2m in 2026–27 and £7m in 2027–28) will be financed through borrowing.

Investment in new buses

The franchising model will require significant capital investment in depots and vehicles. Currently, the WMCA owns just one bus depot in Walsall. The authority estimates that acquiring additional depot facilities will cost it £44.8m

Bus fleet procurement represents the most significant outlay, and TfWM anticipates a total fleet cost of £494.2m. This includes £77m for 895 interim diesel buses to be used during the transition period; and £417.2m
for the purchase of 1,177 new zero-emission vehicles

The public have been clear – they want a better bus service under public control

These vehicles will be funded primarily through borrowing, offset by any government grant support. Existing leases for zero-emission buses will be transferred to the authority at no upfront capital cost.

Shift away from subsidies?

WMCA claims the current deregulated model increasingly relies on taxpayer funding, which amounts to roughly £50m per year to maintain the existing network. A 2023 independent audit concluded that franchising would offer better value for money, even under similar or reduced levels of public funding, by allowing the WMCA to design a more efficient network and open contracts to competitive bidding.

Operator responses

Dominant local operator National Express West Midlands, which currently carries more than 4.5 million passengers each week in the region, has said it will support the move to franchising, but parent company Mobico expressed some serious concerns about the plan (see story in our latest issue).

Meanwhile, independent bus group Rotala, which has grown its presence in the West Midlands in recent years, said it was generally supportive of franchising but opposed the proposed area-based approach adopted by WMCA. Instead, it argued that a London-style route-based model would lower costs, increase competition, and improve service quality. It added that the move would also benefit SME operators and it added that its experience in the franchised Greater Manchester market was that area-based franchising had led to higher costs and numerous service issues.

Stagecoach also expressed cautious support for the franchising plans, agreeing that reform was needed and that regulation can improve control and decision-making. However, the group stressed the importance of maintaining operator involvement in customer service and investing in bus priority. It also raised concerns about financial and reputational risks, depot usage, and the handling of cross-boundary services.

While Stagecoach supported WMCA’s general plans for awarding contracts for the network, it recommended refinements and urged realistic performance targets as well as early stakeholder engagement.

 
This article appears in the latest issue of Passenger Transport.

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