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Perry Richardson

£3billion bus sector shake-up includes more bus lanes, but also potential ‘Uberisation’ of services


Image credit: Number 10 (Flickr CC2.0)

Prime Minister Boris Johnson has today unveiled an ambitious bus sector shake-up, which could see lower and more simpler flat fares in towns, and intriguingly for the licensed taxi industry, more bus lanes.

The Government’s new bus strategy, backed by a mammoth £3billion worth of investment, aims to encourage more people to use the bus, rather than the car, post coronavirus (COVID-19) pandemic.

The changes include:

  • simpler bus fares with daily price caps, so people can use the bus as many times a day as they need without facing mounting costs

  • more services in the evenings and at the weekends

  • integrated services and ticketing across all transport modes, so people can easily move from bus to train

  • all buses to accept contactless payments.

Also included is hundreds of miles of new bus lanes making journeys quicker and more reliable, encouraging people out of their cars, reducing pollution and operating costs.


Prime Minister Boris Johnson said: “Buses are lifelines and liberators, connecting people to jobs they couldn’t otherwise take, driving pensioners and young people to see their friends, sustaining town centres and protecting the environment. As we build back from the pandemic, better buses will be one of our first acts of levelling up.


“Just as they did in London, our reforms will make buses the transport of choice, reducing the number of car journeys and improving quality of life for millions.

The fragmented, fully commercialised market, which has operated outside London since 1986, will end. We want to see operators and local councils enter into statutory ‘enhanced partnerships’ or franchising agreements to receive the new funding and deliver the improvements.”

It is expected that many councils will choose enhanced partnerships, where local authorities work closely with bus companies, drawing on their operating knowledge and marketing skills. Others may decide that franchising works better for them.


Because of the decline in use caused by the pandemic, bus operators have already received significant emergency support from the Government. From this summer, only services under these arrangements will be eligible for continued support or any new sources of funding from the £3billion transformational investment. The Government will also consult later this year on reforming the Bus Service Operators Grant – the current main stream of government bus funding – to achieve the same objectives.


Transport Secretary Grant Shapps said: “Buses are this country’s favourite way of getting around. They help us get to school, to the GP, or to the shops – but services across England are patchy, and it’s frankly not good enough.


“The quality of bus service you receive shouldn’t be dependent on where you live. Everyone deserves to have access to cheap, reliable and quick bus journeys.


“The strategy we’re unveiling today will completely overhaul services, ensuring we build back better from the pandemic. Key to it is the new deal it offers to councils – we will provide unprecedented funding, but we need councils to work closely with operators, and the government, to develop the services of the future.”

Image credit: Number 10 (Flickr CC2.0)

The strategy also sets out ambitions to provide greater access to bus services for all, with plans revealed to require ‘next stop’ announcements on board buses throughout Great Britain, helping disabled passengers and others to travel with confidence. The Government will also launch a consultation on new regulations to improve access on board buses for wheelchair users.


There has however been some controversy regarding the Government’s support for on-demand app based services in rural areas. Unite the Union believes it will lead to the “Uberisation” of bus operations by creating a two-tier bus service, excluding vulnerable groups, damage timetabled services and result in unhealthy competition between competing bus operators.


Unite also understands that trials of app-based services have been a failure, with passengers experiencing long delays before reaching their destination as other passengers were dropped off first. For example a 20 minute journey could take over two hours on a non-timetabled service.


However the Government argues that a London-style bus service is not appropriate for all rural and suburban areas.


Bobby Morton, Unite National Officer for Passenger Transport, said: “Proposals to introduce an app based on demand service are misguided, it will result in the 'Uberisation' of services, leading to ‘Wacky Races’ on our roads as companies compete to collect passengers.


“App-based services will also result in the casualisation of drivers’ employment and will be an expensive two-tier service with passengers who are not digitally literate being excluded.”

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