17

Bus franchising requires significant time and cost, considerably exceeding Departmental estimates.

Conclusion
The Department of Transport is encouraging more local transport authorities to consider franchising their bus services. Franchising, whereby local transport authorities take on more responsibility for bus services and award contracts to private operators, gives local transport authorities more control over bus services, for example, to decide routes and fares. Greater Manchester Combined Authority has franchised its buses, and five other mayoral combined authorities have completed an assessment to start the process. Franchising in other areas would require considerable time, investment and skills. The Department has estimated that the transition to full franchising could cost between £13 million and £22 million per local transport authority. However, it cost Greater Manchester £134.5 million and took seven years to franchise its network.38 In its written evidence to us, Transport for Greater Manchester acknowledged that franchising in Greater Manchester is still in its infancy, so it is not yet possible to draw definitive value for money conclusions.39
Government Response

A response document is linked to this report, dated 19 January 2026. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.9 yr
Report published 29 Oct 2025