Buses in the West Midlands will soon become publicly owned to keep services running for millions of people.
Mobico, the transport company behind National Express, announced on Tuesday that operations of its West Midlands bus business, UK Bus, will be sold to the West Midlands Combined Authority (WMCA), which comprises local councils including Birmingham, Wolverhampton, Solihull and Dudley.
The group has run urban bus services in and around the West Midlands for “around 40 years” and currently operates approximately 1,400 buses with around 4.6 million trips each week in the area.
WMCA will take local control of bus services backed by £11.5 million of government funding across the next three years.
The authority said it will work to directly control bus services through franchising, “paying contractors to run the services for them”.
According to the prime minister’s office, greater public control over bus services will give local leaders more say over routes, branding, fares and standards.
The decision is part of a move towards devolution, said prime minister Andy Burnham.
“When I said we would put power back into the hands of local communities, this is exactly what I was talking about,” he said.
“We’re not afraid to take bold action to protect people, and we’re backing the Mayor to step in to save these vital bus services which millions of people rely on every day.
“Buses are the backbone of public transport in the West Midlands, and this step will mean better, more affordable services for communities across the region.”
The WMCA and government partnership will protect an estimated 4,800 jobs. Buses account for around 80 per cent of all public transport journeys in the area.
Richard Parker, mayor of the West Midlands, said: “People rely on these buses to get to work, to school or to hospital appointments. They are a public service, and I believe they should be run in the public interest.
“So, we stepped in. We protected the services people depend on, protected jobs and kept the West Midlands moving.”
The deal and cost are expected to be finalised in autumn.
Phil White, executive chair of Mobico, said: “As the West Midlands moves toward a franchised network, WMCA is the logical buyer to facilitate that transition. The transaction represents fair value for the assets and liabilities of UK Bus while providing certainty for our colleagues upon completion.”
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