We were concerned the Department was being complacent about the significant level of financial risk for individual local transport authorities if they opt for franchising. The Department told us that some of the transition costs in Greater Manchester would have been spent anyway to keep supported services running. But the Department also acknowledged there are financial risks and that mayoral combined authorities are likely to be better equipped to undertake franchising.40 The Department also agreed that full franchising would not work for many local areas. It is piloting different franchising models with varying levels of cost, skills requirements 38 C&AG’s report, paras 3.3-3.4, Figure 11 39 Transport for Greater Manchester (LBS0021) 40 Qq 58, 61-62 13 and financial risks, depending on which assets are acquired by the local transport authority. Other models include joint ventures with operators or franchising just one region of a bus network.41