Franchising, Funding and the Drive to Decarbonise: Our reflections on the Quality Bus Conference 2025

Burges Salmon was proud to sponsor and participate in the Quality Bus Conference 2025, where industry leaders gathered in Portsmouth to showcase solutions that not only improve bus services, but reduce congestion, tackle air pollution and meet Net Zero targets. 

In case you missed it, we have highlighted some of the key themes from the conference below…

The future of franchising

The movement away from deregulation and acceleration towards bus franchising was made clear at the conference. Representatives from Local Transport Authorities (LTAs) acknowledged the success of Greater Manchester’s franchised “Bee Network” in improving bus services, which in turn has increased patronage and reduced congestion.[1] Together with the Bus Services (No.2) Bill, which, if approved by the House of Commons, will enable LTAs to franchise bus services without the consent of the Secretary of State, many at Quality Bus recognised that bus franchising is gaining momentum

Portsmouth City Council, however, offered an alternative future focused on strengthening enhanced partnerships. As part of its Bus Service Improvement Plan (BSIP), Portsmouth City Council has been working with operators First Bus and Stagecoach to deliver bus infrastructure upgrades and to roll-out a marketing campaign encouraging the community to “Get the Bus”. This has had the effect of increasing passenger growth by 41% over the last two years.[2] 

Both approaches empower LTAs to develop a genuine public-private sector partnership, which was widely agreed as being key to driving bus improvements.

Opportunities to unlock funding

Another recurring theme at the conference was a call from industry to strengthen the commercial viability of the bus network. Funding challenges were well understood. Passenger journeys remain below pre-pandemic levels and, combined with a well-reasoned reluctance to increase fare caps, it is clear that the industry cannot rely on passenger fare revenue alone as a source of income.[3] These financial pressures present a challenge for the public sector that already contributes 50% on average of funding towards the bus industry, is subject to other significant budgetary pressures and faces increased demands for funding of other public services.[4] 

To help the industry overcome these funding barriers, Garry Birmingham of Rock Road provided the conference with valuable practical guidance, adding that:

“Rock’s £100m funding platform to invest in up to 250 Zero-Emission buses across the UK is just one example of how the private sector can help support LTAs in the financing of buses so that public funding can then be prioritised on upgrading bus lanes, bus shelters, purchasing bus depots and associated electrification upgrades.”

These funding arrangements range from traditional public procurements to more innovative models, including the formation of a public-private SPV or such other partnerships similar to that made between Rock Road, Aviva and National Wealth Fund. 

Other simple cost-cutting measures that could unlock funding while bolstering local industry were also discussed. For example, collaboration by LTAs to standardise base-vehicle specifications could lead to large-scale joint procurements with meaningful volume discounts. 

Transitioning to a Decarbonised Network

There was no doubt at the conference as to the benefits of Zero-Emission buses. Zero-Emission buses play a critical role in the UK’s mission to meet its Net Zero targets, and for many LTAs the electrification of buses is necessary to improve air quality and reduce noise pollution. 

Not without its challenges, the conference discussed the complexity of electrifying existing bus depots in such a way that operators can ensure there is adequate charging capacity.  Those at Quality Bus identified this issue as a key consideration during both construction and operation, recommending early engagement with all stakeholders and other organisations who are well-equipped with smart charging and onsite storage solutions. 

Key Takeaways

• The industry is steering away from deregulation towards greater public control, where the success of bus franchising and enhanced partnerships can be attributable to empowering LTAs to develop genuine public-private partnerships.
• Collaboration with the private sector in the financing of Zero-Emission buses could be the key to unlocking public funding that can then be invested in upgrading bus infrastructure.
• Early engagement with stakeholders well-equipped with smart-charging and onsite storage solutions is critical in the transition to an electrified bus network.

If you would like to discuss legal support in the bus sector and in other sustainable transport projects, please contact Chris Simms, Chris Lewis or Madison Sutton.

[1] GMCA 20250627 Delivering Better Bus Services for Greater Manchester - Appendix

[2] A city's award-winning approach to Enhanced Partnership for bus

[3] Annual bus statistics: year ending March 2024 (revised) - GOV.UK

[4] Local Bus Services in England