Cost pressures see The Green Bus exit home-to-school services

Birmingham-based education transport specialist The Green Bus will operate no home-to-school services during the coming academic year after it said that rising costs on those routes “now exceed the income we receive.”

Chief Executive Ian Mack wrote to parents on Saturday 26 August advising of the decision. Schools affected are due to return on 4 September.

The business previously ran commercial home-to-school provision in the West Midlands and Warwickshire, with Warwickshire County Council being advised of the cessation late in week commencing 21 August. The local authority is now seeking alternatives, but The Green Bus has advised that some passengers should use existing bus and rail services.

Two O-Licences with a combined authorisation of 47 vehicles have been used to provide services, one in the name of The Green Bus Company Limited and the other held by The Green Transport Company Limited. Both are currently listed as under consideration for surrender by the Traffic Commissioner.

In his letter to parents, former teacher Mr Mack says that a 38.1% increase in The Green Bus’s motor insurance premium from 1 August “made our networks financially lossmaking.”

He notes that since then, work had been underway to place services with another operator, which is thought to be a medium-sized coach business. Agreement had been reached with that company for it to provide the routes on The Green Bus’s behalf.

However, the third party concerned withdrew from the arrangement on the morning of Thursday 24 August. “We now have no choice but to withdraw our services,” Mr Mack continues. Customers who have already paid for passes for the 2023/24 academic year will be refunded.

Acknowledging the inconvenience caused by the timing of the decision, he notes that terminating the employment of staff “was one of the most difficult things I have done.” Mr Mack claims that “it is simply unsustainable for small operators to survive in the rapidly declining marketplace for local bus services.”

It is understood that the associated Birmingham Busworks business – of which Mr Mack is also sole Director and which in Birmingham City Transport Limited shares the same ultimate parent company as The Green Bus Company and The Green Transport Company – is unaffected by the development and is carrying on as normal.

A reply is awaited to an email from routeone seeking further information around the decision, including whether Mr Mack is likely to continue in the operation of rail replacement and/or private hire services.