Agenda item

Considered – Report of the Corporate Director – Environment to provide the committee with an update on bus services in North Yorkshire.

Some of the key points highlighted in the report are as summarised below:

·         Bus services continue to be under significant pressure both locally and nationally following the Covid-19 pandemic. Passenger numbers have recovered to around circa 90% of pre covid levels, with this figure much lower for concessionary pass users at around 70%. This has particularly affected rural routes where older passengers represented a greater proportion of users.

·         There has also been a significant increase in operating costs along with national difficulties with recruiting bus drivers, engineering staff and sourcing spare parts. As a result of these added pressures, providers are reviewing their services more than ever before, resulting in commercial service level reductions and higher prices for routes operating under contract to the council.

·         North Yorkshire Council has maintained its support for local bus routes over recent years, spending over £1.6m each year on bus services. We are also accessing grant funding from central government which is helping to keep the current bus network running.

·         In rural areas there is no significant commercial network with services generally operating no more than two-hourly and with very limited, or no, evening and weekend services. Here bus services are largely financially supported by the Council, along with local community transport services and only very limited cross-boundary commercial routes.

·         In areas with limited commercial and subsidised provision the Council also works in partnership with communities to establish community-operated, timetabled bus services or local voluntary car schemes. These are mainly in the more rural districts of Craven, Hambleton, Richmondshire and Ryedale. Community transport is typically small-scale, requires some subsidy and is heavily reliant on continued volunteer involvement to operate.

·         Regular reviews are undertaken of the local bus services in receipt of financial support.  As part of the formal review process, key stakeholders such as local members and parish councils are invited to contribute regarding service provision in their area.

·         North Yorkshire Council expenditure on tendered bus services, community and demand responsive transport and concessionary travel is forecast to be over £9m for 2023/24. The Council is required to reimburse operators for concessionary journeys made by bus pass holders as part of the statutory national scheme and this alone accounts for over £6m of spend.  The remainder supports local bus routes, community transport and park and ride services.

·         Around a third of bus services have seen timetable reductions since the pandemic or have required additional financial support to maintain services. The Council is also receiving grants from the Department for Transport (DfT) to support previously commercial bus routes that would otherwise already have been withdrawn due to fewer passengers travelling and rising costs.

·         While higher operating costs and a reduction in the number of trips being made by older passengers continues to put pressure on our rural bus services, we believe through a combination of council funding and these DfT grants we can keep the current network in place until at least 2025/26.

·         Feedback from bus companies to the £2 fare cap is mainly positive, in that the scheme is generating more passenger journeys, although the level of funding provided is not always enough to provide extra capacity. The fare cap has been a significant factor in Yorkshire Coastliner’s decision not to withdraw the Route 840 Leeds to Whitby service. However, it has led to some overloading issues, particularly on tourist routes and at busy times of the year.

·         Government recently announced that additional funding for buses called “BSIP3” would be allocated to local authorities in the Midlands and the North following the decision not to proceed with the High Speed 2 rail project. NYC has been given an indicative allocation of £3.5m. This funding is to support delivery of our Bus Service Improvement Plan (BSIP) for interventions that it is felt will deliver the best overall outcomes in growing long term patronage and revenues (thus maintaining service levels), whilst maintaining essential social and economic connectivity for local communities. However, this is currently for one year only (2024-25) and so will need to be focused on schemes that can be delivered in a relatively short timescale.

·         Between April and June 2024, 20 new single deck and 19 new double deck battery electric buses will be introduced in the Harrogate district area, including the four declared air quality management areas in Ripon, Harrogate and Knaresborough, and will result in immediate air quality improvements in these locations and an improved customer experience.

Following this, comments and questions raised by the committee included:

·         On the plans to spend the £3.5m additional BSIP3 funding, officers explained that they have been engaging with bus service operators already on potential plans, with a focus on improvements that can be delivered quickly given as the funding is only for one year. It is hoped further funding will follow in years to come, where a more longer term view can be taken.

·         As it stands, the current £2 fare cap is only running until the end of the calendar year. However, the fare cap has been extended several times before and it has had the desired effect of increasing passenger numbers. Further funding announcements are expected from the Department for Transport during the calendar year.

·         On cross boundary working, with the formation of the MCA and the transport powers it will inherit, this should improve joined up thinking regarding bus services that overlap areas, particularly between York and North Yorkshire areas. Active discussions are taking place on this. Cross boundary discussions with other local authorities continue and NYC officers will seek to influence where they can.

·         There has been a fundamental shift in how people choose to live their lives and how they wish to travel following the pandemic. As part of the Local Transport Plan being refreshed, this will start to reflect the current thinking and look at future trends to try and help us have a new plan that is fit for the future.

A question was raised about future franchising of bus services in the future, with the potential that more profitable services could end up subsidising the less profitable services. In response, it was explained that the new Local Transport Plan, as the key strategic policy will come first to determine the services across the region that we want to deliver, and then to look at the best delivery mechanism to do that. It will be a matter for the new Combined Authority to consider regarding future franchising and the various pros and cons.

·         A Member stated they were not a fan of the £2 fare cap and felt the government should actually gave the true cost to the council to put back into key routes to offer more frequent services.

·         It was asked if the £3.5m BSIP3 funding can include community transport provision, but it was confirmed it cannot and it is ringfenced to be spent on the delivery of the Bus Service Improvement Plan (BSIP).

·         It was noted that the electric bus provision across the county relies on the appetite of the bus service operators, as they have to commit significant expenditure to secure match funding.

·         The approach of the council to use the additional BSIP3 funding is to pump prime some of these services, and together with providing fare caps for young people put in services that can become commercially sustainable in the future and we will work hard to promote these.

·         It was explained that there is a proposed allocation as part of the new funding to improve the promotion of the information we offer to the public though display boards and the web offer to display timetable information better.

·         In response to a query whether there the potential for a publicity campaign to encourage residents to travel by bus in the summer, particularly with the cost of travelling by car and insurance premiums, this was to be considered.

·         The prioritisation of buses on roads will form a key part of the new Local Transport Plan and there is ongoing work around park and ride site provision.

Resolved – That the Committee note the information in this report and that comments be passed to the relevant Executive members.