Stagecoach launches legal challenge against regional bus reforms

Stagecoach is mounting a legal challenge against Greater Manchester's plans to take control of its bus network after labelling the consultation around the reforms as 'flawed'.

The company accused the combined authority of running an ‘unlawful’ public consultation on their plans to introduce a London-style bus franchising system in the city-region.

Concerns have also been raised about the plans to spend £135m on reforms at a time when local councils are having to cut millions from their budgets.

Under the proposals the Greater Manchester Combined Authority (GMCA) would set fares, timetables and routes in a move seen as being of best value to taxpayers.

If approved, the city-region would be the first place outside of the capital to have a regulated bus system since the 1980s.

Council leaders and mayor Andy Burnham have been asked to back the reform by transport bosses who say change is needed now more than ever given the impact of Covid-19.

But Stagecoach has submitted a court application for a judicial review after claiming that the consultation had not taken into account ‘fundamental changes’ brought on by the pandemic.

Chief executive Martin Griffiths spoke of the company’s ‘disappointment’ at the GMCA’s recommendation for leaders to approve the bus franchising scheme on March 23.

Mr Griffiths said: “We believe the GMCA conducted an unlawful process and a flawed consultation on proposals which do not properly reflect the fundamental and material changes brought about by the Covid‐19 pandemic.

“This is simply not the right time to be considering spending huge sums of money on a bus franchising scheme which does not meet the tests laid down in law. 

“The proposed scheme also involves spending £135m on transitional costs alone without delivering any improved services for customers when at the same time multi‐million‐pound cuts are being considered to vital frontline public services.”

A decision on the future of the bus network was expected from Greater Manchester mayor Andy Burnham last March but was postponed due to the outbreak of Covid-19 and ensuing lockdowns.

This delay prompted a second consultation that showed the plans still carried a ‘high level of public support’ – though the number of positive responses fell from 83 per cent to 71 per cent.

Mr Griffiths said: “It is clear from a significant number of consultation responses that there is widespread concern among local taxpayers, businesses and other organisations about the sustainability of the franchising plans and the dangers of proceeding with them now.

“Our priority has always been to ensure we have a bus network that works for local communities, taxpayers, and the bus operators whose success supports the economy and employment in Greater Manchester.

“While we await the decision of the court, we would urge the Combined Authority to rethink its approach and pause its plans.  

“We remain ready to work in partnership with the Combined Authority, as we have done throughout the pandemic, on alternative plans to stabilise and rebuild bus services, and ensure the region has a sustainable, high quality bus network for the long term.”

A GMCA spokesperson said: “The GMCA has received a claim for judicial review, which has been submitted by Stagecoach Group PLC.

“We have reviewed and filed a response to the claim and are awaiting an update from the court on next steps. It would not be appropriate to comment further at this stage.”