Award of bus franchising contracts in Greater Manchester is complete, and as predicted by some, SMEs’ involvement in that market will be vanishingly small from January 2025 when mobilisation concludes.
Just one such operator will be represented, in the home-to-school field. Transport for Greater Manchester said in 2019 that it had developed a packaging strategy that considered SME operators and would provide them with continued market access.
A document gave a general expectation that SMEs would bid for small and large bus franchising contracts, but the quest to keep them in the region’s franchised bus network has failed dismally. That is beyond any question.
There is no unravelling it now, and scant scope to bring SMEs back when franchise contracts are retendered. Some previous market participants with coach as their focus may walk away with a shrug. To others, bus was their bread and butter. What now for those locally owned businesses, Mr Burnham?
Meanwhile, the Competition and Markets Authority has chimed in on SME involvement in other franchising schemes.
On 3 August it highlighted to the Liverpool City Region Combined Authority the importance of considering those businesses in contract ‘lotting’. The West Yorkshire Combined Authority has made much of its work around small operators in franchising development, but fears exist of a similar outcome to Greater Manchester.
Louise Haigh wants franchising across England. It is likely also in Scotland and Wales. Regardless of one’s view of reregulation, small operators’ participation is key to its prosperity. Lessons must be learned from their lack of success in Greater Manchester, and quickly.
