The delayed Bus Bill in Wales is due to be introduced to the Senedd in March 2025, with the franchising-based model it will enable starting in 2027, the Welsh Government has said.
Such a Bill has long been promised, with an earlier intention that it would be introduced by mid-2024. A delay to that was earlier attributed to an intense legislative programme, but on 10 December Cabinet Secretary for Transport and North Wales Ken Skates reiterated that reform of bus services in Wales via franchising “is one of my key priorities.”
Some parties connected to the Welsh bus industry have questioned where money will come from to deliver the planned regulatory overhaul. It will see the Welsh Government, Transport for Wales and local authorities work together to set routes, timetables and fares.
The first round of franchising in 2027 will capture south-west Wales. North Wales will follow in 2028, the rest of South Wales in 2029, and mid-Wales in 2030. The Bill will also lift the ban on creating new municipally owned bus operators. Those, private companies and third sector organisations will be able to bid for franchise contracts under the plans.
Mr Skates adds that the Bill will “fundamentally” change how bus services in Wales are delivered.
“The new franchising model will help us to make better use of the significant funding the Welsh Government provides to the bus industry and allow us to design a network that works for people and communities – alleviating transport poverty to create a fairer and more equal Wales,” he says.
The Welsh Government adds that it continues to bridge the gap to franchising by supporting bus services in the country. A draft budget for FY2025/26 published on 10 December shows via budget lines that bus service support resource funding in Wales then is expected to be £132.5 million, a gain of around £9.2 million from the FY2024/25 total of £123.3 million.
That money will go towards the costs of service delivery and the concessionary fare scheme. The Confederation of Passenger Transport Cymru has welcomed the uplift, but Director Aaron Hill has called upon the Welsh Government to double it to £18 million before the final budget is agreed.
Mr Hill says that Welsh bus operators will need to find an additional £3 million for employers’ National Insurance contributions in the next financial year. Increased costs will “ultimately drive higher fares or fewer services without more investment from government,” he adds.
