Agenda item

The City Transport Director Submits a report to provide details of the Department for Transport 25/26 Bus Service Improvement Plan (BSIP) and Bus Service Operators Grant (BSOG) to members of the commission and to outline the intended approach for the deployment of funds related to BSIP and BSOG.

The City Transport Director Submits a report to provide details of the Department for Transport 25/26 Bus Service Improvement Plan (BSIP) and Bus Service Operators Grant (BSOG) to members of the commission and to outline the intended approach for the deployment of funds related to BSIP and BSOG.

Key points included:

• The grant process had been competitive.
• The Council was part of the Leicester Buses Enhanced Partnership.
• The funding for the Improvement Plan must be spent on projects within the published Bus Service Improvement Plan, that were previously agreed and approved by the Department for transport (DfT), and projects that promoted bus use for residents and visitors to the city.
• Procuring buses or routes at short notice resulted in very high costs, especially when only operating for a short period of time. This hampers direct investment, and restricted how the authority can invest the funding.
• Another difficulty had been that capital schemes such as bus priority required extensive design, modelling, engagement and consultation.
• Priorities for the programme therefore included:
  • Areas where there is opportunity to obtain private sector investment.
  • Projects that were deemed deliverable against the March 2026 deadline.
  • Opportunities which could benefit revenue-saving and passenger growth.
  • Areas where future withdrawal of funding would not be disruptive or damaging.
  • Areas which will improve the network and the accessibility of the network, and where research showed that investment could lead to long-term sustained passenger growth.
• It was proposed that the programme:
  • Operated a grant scheme for purchasing electric busses, similar to the DfT Zero Emission Bus Regional Areas scheme.
  • Continued the same level of support for the Hop! service and the Park and Ride service.
  • Maintained real-time information.
  • Supported Greenline routes.
  • Provided branding, marketing and promotional work across the Leicester flexi area.
  • Provided additional printed timetable information at certain bus stops.
  • Supported the development of future programmes.
  • Supported staff resource required for delivery of services.
• The programme allowed for the potential of up to £23m in investment, including match funding from bus operators.
• Future funding was dependent on hitting deadlines, so it was important to get the scheme up and running.

The Commission were invited to ask questions and make comments. Key points included:

• In response to questions about whether subsidies lead to passenger growth, it was stated that the market was there in terms of discounting fares and running on certain routes, however, services needed to cater for the market and the need of travel in terms of journey times.  Research maximised the opportunity to continue services and services would receive newer electric buses, which had faster acceleration and were more comfortable, which has led to people changing their travel habits.
• This was only a 1-year programme, so investment would only be made in what would yield long-term benefits.
• In response to a query about whether services in Thurncourt ward could be established as part of the scheme, it was explained that new drivers would need to be recruited and new buses purchased, this would mean a heavy cost premium.  Therefore, new services were not considered directly as part of this funding.  However, if multi-year funding was secured, then this could be considered.
• The scheme would support the Hop! Service, the Hospital Hopper service and the Park and Ride system.
• In response to a request that the Park and Ride service stop at Leicester Royal Infirmary (LRI), it was noted that the 203 stopped at LRI and the 103 stopped nearby at St Nicholas Circle.  There was also a long-term ambition for the Park and Ride service to serve employment hubs in the city.
• The funding deadline was nine months away, so there was not much time to develop proposals, but more could be taken on if multi-year funding was secured.
• In response to a request for the expansion of real-time information, it was noted that this was being considered.  The contract for maintenance of real-time information was being renegotiated and this would take the majority of the year, however, from next year onwards the real-time information could be expanded.
• It was noted that there was a rolling programme across the city to improve bus stops, particularly in terms of where they needed to be and whether services could continue operating to and from them.  Work was being conducted with operators on where the core routes were and funding options for the future were being considered.  A small number of sites would be looked at towards the end of the year as a proof of concept.
• In response to a query about the possibility of reducing fares for certain groups, it was noted that the Government’s £3 cap would remain until 2027.  It was further noted that blanket schemes had most likely benefitted existing bus users, but had not increased bus users.  Subsidy schemes would therefore be reviewed as they came to an end to consider gaps in the market and tailoring fares to benefit people.  Caution was advised as costs could outweigh benefits and it was noted that such plans could take many months of legal and contractual engagement, so it would be difficult to do this year.

AGREED:

1)    That the report be noted.

2)    That comments made by members of this commission to be taken into account.