Council leader speaks out on bus funding changes as services cut and warning operators could fold

Cllr Steve Hunt made the comments at a meeting of Neath Port Talbot’s full council on Wednesday 12 July.

With just 2 weeks to go before the start of the new Welsh Government Bus Transition Fund which replaces a previous COVID-era funding scheme, Cllr Hunt criticised a lack of certainty around how the new funding would be applied and how the overall funding pot would be divided between each region.

The Council leader highlighted that this uncertainty had already had an impact on bus services in Neath Port Talbot with one local operator already cutting services.

Cllr Hunt said: “The Bus Emergency Scheme was introduced by Welsh Government in March 2020 when the pandemic hit and the public were advised not to travel. As passenger numbers slowly returned, the initial scheme evolved and ended on 31 March 2023, but passenger numbers have not returned to pre-pandemic levels.

“Following lobbying by Local Authorities, bus operators and partners, Welsh Government extended the emergency funding so that services could be maintained in their current form until 30 June 2023. The scheme was then extended to 24 July 2023 to ensure transport to schools could continue until the end of the school year.

“The current position is that the Bus Emergency Scheme will be replaced by a new Bus Transition Fund. The new fund is capped at £46 million for the whole financial year with £4M allocated to Welsh Government Traws Cymru Services.

“Welsh Government has asked operators, Local Authorities and Transport for Wales to consider an alternative bus network from 24 July 2023 that could be delivered within the new reduced funding pot. Bus operators are clear that most routes will be negatively impacted by the reduction in funding.

“It should be noted that while the overall amount of money in the Bus Transition Funding pot has been announced, there is a great deal of uncertainty as to how this funding will be applied. For example, terms and conditions for the new grant have not been formalised, also, the proportion allocated to each region has not been identified.”

Cllr Hunt added: “The bus network cannot be designed without knowing the exact funding available, operator costs and acceptable profit margins. While operators in Neath Port Talbot and the region have been advised to continue operating at current service levels until the funding and terms and conditions are confirmed, the lack of certainty has caused some operators to withdraw from the local market.

“Already, one operator has deregistered and amended services from 24 July onwards. The reasons given by the operator are uncertainty and short term funding arrangements. A second operator has amended routes in the Afan Valley as a result of financial viability concerns.

“Officers have approached alternative operators to cover gaps in the local network as a result of actions taken by operators. However, the ongoing uncertainty and short term nature of bus funding does not make investment in additional vehicles attractive for those operators. Additionally, bus operators and community transport have been asked to divert services to cover areas left without services. It is not clear yet if the running time allows them to do this.

“Another risk to local bus network services relates to franchising in the Manchester area. There are concerns that drivers from this area will relocate to Manchester for higher driver wages. If this risk were to occur this will further increase pressure on the Network. Members, you will note from my short update that the Welsh Government has done much to support the bus industry during the pandemic period and into the recovery phase. Crisis funding clearly cannot continue indefinitely and the introduction of a Bus Transition Fund following the lobbying this council and other councils have undertaken is very much welcomed. However, the lack of certainty that has accompanied the implementation of the transition fund is clearly impacting on local bus operators with the result that some are already making strategic and tactical decisions about their continued involvement in the network with significant impacts for residents, learners and businesses.

“Executive members and officers will continue to work within the region, through WLGA and with Welsh Government to try to protect services to the maximum extent possible. We have also requested that Welsh Government initiates a public engagement campaign to encourage an increase in usage of local bus services, restoring passenger confidence in travelling on the local network.

“I will arrange for further updates to be provided to members over the coming weeks as we work to achieve greater certainty for all of those who depend on these vital local services.”

Cuts to services in Neath and Port Talbot

Local operator South Wales Transport has already announced changes to its services in Neath Port Talbot, cancelling it’s 202 and 204 routes from 23 July.

Talking about the cancellation of the two services, in a statement on it’s website, South Wales Transport state: “Both services have been heavily supported by Welsh Government since the Covid pandemic and passenger levels have failed to return to pre-Covid levels.

“Welsh Government’s reduced support has created further uncertainty for the future of many bus services in Wales, and the Government has acknowledged that some further bus services will be reduced or withdrawn this financial year because of a shortage of funding.

“South Wales Transport understand that the local authority has contacted other bus operators in the area to assess if there is interest in operating the withdrawn services from 24th July.”

As a direct result of the above services’ withdrawal and the number of buses being cut, South Wales Transport have warned a number of school’s services will also be affected. These include the cancellation of the S50 service to Cefn Saeson Comprehensive School, cuts to certain journeys on service 256 and timetable changes to services 251 and 252.

A spokesperson for South Wales Transport added: “We have not made these decisions lightly and regret that we are unable to maintain services that have operated in some form for decades in some cases.

“The reduction and uncertainty of support and the direction that Welsh Government are pursuing have left us no option.

“We would like to thank our customers that have continued to support our bus services over the past few years.”