By using this site, you agree to the Privacy Policy and Terms & Conditions.
Accept
routeonerouteonerouteone
  • News
    • Show all
    • Awards & Events
    • Deliveries
    • Environment
    • Exhibitor News
    • Euro Bus Expo 2024
    • Features
    • Legal
    • Minibus and minicoach
    • Operators
    • Opinion
    • People
    • Suppliers
    • Vehicles
  • Vehicles
    • Find a Vehicle
    • ZEV Comparison Tool
    • Sell a Vehicle
    • Vehicle Seller Dashboard
  • Insights
  • Careers
  • Events
    • British Tourism & Travel Show
    • Euro Bus Expo
    • Innovation Challenge
    • Livery Competition
    • routeone Awards
  • Advertise
  • Contact
    • Share your news
    • Subscribe
    • Update Subscription Details
  • Latest Issue
  • SIGN UP
Search
© 2024 routeone News. All Rights Reserved.
Reading: Details of second proposal for coach industry support revealed
Share
Font ResizerAa
routeonerouteone
Font ResizerAa
Search
  • News
    • Show all
    • Awards & Events
    • Deliveries
    • Environment
    • Exhibitor News
    • Euro Bus Expo 2024
    • Features
    • Legal
    • Minibus and minicoach
    • Operators
    • Opinion
    • People
    • Suppliers
    • Vehicles
  • Vehicles
    • Find a Vehicle
    • ZEV Comparison Tool
    • Sell a Vehicle
    • Vehicle Seller Dashboard
  • Insights
  • Careers
  • Events
    • British Tourism & Travel Show
    • Euro Bus Expo
    • Innovation Challenge
    • Livery Competition
    • routeone Awards
  • Advertise
  • Contact
    • Share your news
    • Subscribe
    • Update Subscription Details
  • Latest Issue
  • SIGN UP
Follow US
© 2024 routeone News | Powered by Diversified Business Communications UK Ltd
- Advertisement -
-
routeone > News > Details of second proposal for coach industry support revealed
NewsOperatorsTop Story

Details of second proposal for coach industry support revealed

routeone Team
routeone Team
Published: July 30, 2020
Share
SHARE

The Confederation of Passenger Transport (CPT) has outlined details of its further proposal to the government for financial support for coach industry. It follows an earlier set of plans that were rejected by Transport Minister Baroness Vere on 15 July.

Contents
Second CPT coach industry support proposal in detailGrave consequences if government fails to adopt

When submitting revised proposals, CPT has stressed that the matter is of the utmost urgency. “The coach industry cannot survive much longer without further direct government assistance, in whatever form that might take,” it says.

Second CPT coach industry support proposal in detail

The second submission for backing “is a value for money option, using existing coronavirus COVID-19 funding mechanisms,” CPT observes. The measures that it calls for are:

Government assistance with postponement of capital payments for 12 months by the lender. That would see the government arrange for existing coach operator business finance agreements to be extended by 12 months, effective from August, for those operators that desire.

It would use existing Coronavirus Business Interruption Loan Scheme (CBILS) or Bounce Back Loan principles. Interest and arrangement charges (if applicable) would be paid by the government, in line with the rules of those schemes, up to 2.5% and a cap of £5m per operator for 12 months from August.

Removal of existing personal guarantees in line with CBILS rules, including a principle private residence exclusion. That would see an immediate suspension of house repossession orders in line with emergency coronavirus COVID-19 legislation.

Access to be granted to support available to the leisure, hospitality and retail industry. To allow the 85% of coach operators that have not had access to grant funding and business rate relief for 12 months to receive parity with those that have.

Government funding to top up, to a viable daily rate, monies paid for existing home-to-school transport until the end of spring term 2021. CPT says this is necessary both for existing home-to-school services that will not be able to run alongside ‘infill’ work, and for additional capacity that will support registered bus services.

If adopted, the four proposals “would ensure that there are sufficient coaches to service future home-to-school needs and to cater for the revival of the traditional work portfolio during 2021.”

The Confederation notes that its plans would also benefit the vehicle manufacture and supply sector, which otherwise stands to shed 4,000 UK jobs over the next nine months, and the government’s recovery agenda and its environmental and air quality goals.

Grave consequences if government fails to adopt

While CPT President Steve Whiteway indicated on Friday 25 July that the government’s hard-line approach to coach industry support may finally be starting to soften, the consequences for both the coach sector and the economy are grave if ministers continue to dig their heels in.

Coach industry support proposal
If adopted, CPT’s revised and resubmitted proposals would support the coach industry into 2021 through a package of government measures

Should no backing be forthcoming, CPT says it is “unlikely” that the industry will be able to cover more than 75% of existing home-to-school services, particularly from November onwards.

It will also not be able to resource any of the additional dedicated capacity that will be needed due to social distancing on local bus services.

Baroness Vere had suggested that an increased requirement for dedicated home-to-school transport from the autumn term would act as something of a windfall for the coach industry.

CPT disputes that. It says that a return of existing home-to-school provision, and the additional dedicated capacity required, “is unlikely to be enough to keep sufficient coach companies viable.” CPT adds that some operators are considering handing back existing contracts where a lack of ‘infill’ work will make them unviable.

The loss of that additional revenue will mean that “many operators will need to charge two to three times more per vehicle [for home-to-school journeys] per day to balance the books.”

CPT predicts that if no support is forthcoming, 23,000 jobs and 1,050 operators will be lost from the industry by April 2021. It also forecasts that 9,100 vehicles would be idle or repossessed by that time. A further 8,000 would be subject to SORN notifications with no viable work or drivers.

Read CPT’s full submission to the government here.

Share This Article
Facebook LinkedIn Threads Email Copy Link
Previous Article Optare Metrodecker EV fleet makes debut with First York
Next Article Suspended ArrivaClick service in Liverpool will not return
- Advertisement -

Latest News

Temsa HD12 and HD13 delivered to Cresta Coaches under Asset Alliance rental deal
Temsa pair join Cresta Coaches on Asset Alliance rental agreement
Deliveries
Go-Ahead London – Managing Director
Careers Jobs
andy burnham tfgm £15.6 billion (1) The funding announced by Chancellor Rachel Reeves today (4 June) has been allocated to several combined mayoral authorities to use on rail, tram, road and bus infrastructure. Transport for Greater Manchester revealed today that part of the £2.5 billion it will receive will go towards making the Bee Network fully battery-electric by 2030. An as-yet undecided portion of that will support a planned investment in 1,000 new zero-emission buses over that period, the mayoral authority said. That is part of plans to build the UK's "first fully integrated, zero-emission public transport system", with trams and trains also set to benefit. Liverpool City Region's already announced BRT system is among the projects to which its £1.6 billion will be allocated. Under those plans - due for realisation by 2028 - a high-speed network will be served by articulated buses which are modelled on the 'Glider' in Belfast. It is due to link Liverpool city centre with John Lennon Airport, and Liverpool FC and Everton FC's respective stadia along three routes. Although the model of bus has not been confirmed, a Van Hool Exqui.City on loan from Belfast was last year used as a demonstrator. That 18m vehicle can accommodate around 30% more passengers than a typical bus and has three sets of double doors. The funding will also go towards buses elsewhere in the city as the region heads towards franchising services by 2027. Liverpool Mayor Steve Rotheram with a 'Glider' which was on loan from Belfast last year - an example of the sort of bus which could serve the new BRT Bus services in the East Midlands region will be boosted by the funding, thanks to the £2 billion handed to it today by the government. Some of that allocation will be used for a rapid transit network on the Trent Arc between Nottingham and Derby. Between the two cities, the Freeport, Infinity Park Investment Zone and Ratcliffe-on-Soar will also benefit from the improved bus services. South Yorkshire Mayoral Combined Authority's newly announced commitment towards bus franchising has been boosted by £350 million in funding as part of that region's allocation. The funding for West Yorkshire will help build new bus stations in Bradford and Wakefield. Likewise, the Tees Valley Mayoral Authority will put its sum towards a new £15 million bus station in Middlesbrough. Transport Secretary Heidi Alexander says: "Today marks a watershed moment on our journey to improving transport across the North and Midlands – opening up access to jobs, growing the economy and driving up quality of life as we deliver our Plan for Change. "For too long, people in the North and Midlands have been locked out of the investment they deserve. With £15.6bn of government investment, we’re giving local leaders the means to drive cities, towns and communities forward, investing in Britain’s renewal so you and your family are better off."
TfGM’s all-electric bus plan boosted by new £15.6 billion package
News
Local Transport Minister opens First Bus electric depot in Hengrove
Local Transport Minister opens First Bus electric depot in Hengrove
Bus
- Advertisement -
-

routeone magazine is the indispensable resource for professional UK coach, bus and minibus operators. The home of vehicle sales and the latest bus and coach job vacancies, routeone connects professional PCV operators with complete and unrivalled news coverage.

  • Terms & Conditions
  • Privacy Policy
  • GDPR Policy
  • Sustainability
  • Advertise
  • Latest Issue
  • Share Your News
routeonerouteone
Follow US
© 2024 routeone News | Powered by Diversified Business Communications UK Ltd