Bus tender contract prices fell by an average of 2% last year – the eighth consecutive fall, according to an annual survey of local transport authorities (LTAs) by the Association of Transport Co-Coordinating Officers (ATCO)
It says that contract prices for home-to-school and special educational needs (SEN) fell for the 10th consecutive year (averaging 8.3% less, and 2.3% less in the 12 months to 341 March 2016)
It adds that the cost of contract prices for subsiding socially necessary bus services fell by 25 on average in 2015/16
However, the survey also shows a reduction in competition for local bus service contracts. There were an average of 2.9 bids per contract. Nearly one-third (31%) of contract only had one bid and 1.8% had no bids.
Of the 130 LTAs surveyed outside London, 73 responded to ATCO’s request for information.
ATCO estimates that £280m is spent on supporting local bus services a year (outside London), alongside an estimated £835m on English and Welsh national concessionary travel schemes.
It adds that competition for school, and SEN transport remains “fairly strong” along it has reduced. There are an average of 3.7 bids per contract for schools, and 5.9 bids for SEN. There is competition for 90% of contract, with fewer than 2% having no bids.
