Stagecoach South Wales MD on potential bus reforms

South Wales Argus

23-05-2025

Franchising, enhanced partnerships, and hybrid models in between should all be fully explored by policy-makers and operators alike, with the focus not on favouring one structure over another, but on what delivers the best outcomes for passengers.
Buses are the most used and most accessible form of public transport in Wales, supporting more than 200,000 journeys each day. They connect people to jobs, education, healthcare, and each other — and for the one in five people in Wales without access to a car, they are a vital link to daily life.
In the face of post-pandemic travel patterns, inflationary pressures, and ongoing shifts in how and where people live and work, the case for renewed collaboration to secure and strengthen local bus networks has never been more urgent.
At Stagecoach South Wales, we are fully behind the ambition to improve bus services. We share the Welsh Government's goals: to encourage modal shift, support communities, tackle climate change, and create a more seamless public transport system. But to achieve those goals, reform must build on what already works — not risk undermining it.
Under the current Bus Services Bill, the Welsh Government proposes a wholesale shift to franchising. While the intent behind this approach is understandable, franchising is not a silver bullet — and could introduce new complexities and costs at a time when urgent, joined-up solutions are needed.
Critically, the proposal would see commercial operators become contracted providers. That risks sidelining the innovation, investment, and customer focus that operators have delivered. Real-time information, digital ticketing, zero-emission buses, and enhanced driver training have all come from operator-led investment and close local partnerships.
While franchising is one route to delivering improvements such as integrated ticketing, simpler fares, and joined-up timetables, it's not the only option. Enhanced partnerships can also offer a practical and cost-effective path to these outcomes — providing a framework for clearer coordination, consistent local delivery, and smarter regulation.
Importantly, many of the biggest issues facing bus services — traffic congestion, journey times, and declining ridership — aren't governance problems. They are operational challenges that require bold, local decision-making.
Moreover, the costs associated with franchising are significant. The Welsh Government has estimated that around £300 million would be needed to fund the transition.
In Greater Manchester — which introduced a franchised model in 2023 — recent figures show a £226 million subsidy gap between farebox revenue and operating costs. These are important considerations for Wales, where funding pressures are already acute. To put it into perspective, £300 million spent on franchising transition could instead train approximately 6,000 nurses in Wales — a sobering thought given the immense demand for healthcare staff and the pressures on public finances.
And yet, all that cost would deliver the same challenging quandary: under a fully franchised model, when costs rise or revenues fall, the Welsh Government would be faced with the same dilemma as operators do now — increase fares, cut services, or request further subsidy.
Meanwhile, passengers are telling us the current system isn't broken. The latest Your Bus Journey survey by Transport Focus, commissioned by Transport for Wales, shows that 84 per cent of passengers in Wales are satisfied with their bus service — slightly higher than the UK average (83 per cent) and significantly above Greater Manchester (79 per cent).
There is growing recognition of the potential benefits of the net cost model — an approach gaining attention across the UK. As seen in Jersey, this model has delivered high levels of passenger satisfaction, cost efficiency, and operational stability without the complexity and financial risks of full franchising.
The Department for Transport (DfT) recently reported that Jersey's network achieved significant modal shift, with a 47 per cent increase in bus patronage by the end of 2024. This model allows the public sector to retain control over outcomes while drawing on private sector expertise and investment.
With a strong track record and lower financial risk, the net cost model offers a quicker, more affordable route to real improvement — delivering better outcomes for passengers, communities, and taxpayers.
Wales has a chance to lead with a balanced, pragmatic approach: combining enhanced partnerships, targeted franchising where it makes sense, and greater local decision-making to reflect local needs.
Stagecoach South Wales is ready to be part of the solution. We're committed to working with the Welsh Government, Transport for Wales, and local authorities to build a better, greener, more connected bus network.
Because in the end, this isn't about structures or contracts — it's about people. It's about creating a public transport system that strengthens communities, supports the economy, and works for the Wales of tomorrow.