Agenda item

Report providing an update on the bus reform business case and progress via the auditing process with a decision to proceed to consultation as per the Bus Services Act 2017 and the associated Bus Franchising Guidance.

It was resolved to:

A    Approve the Bus Reform Assessment (also known as the Outline Business Case or OBC Assessment) dated 1st July 2024, as provided to the independent auditor, in line with approvals received at the September 13th 2023 CPCA board and agree that the Bus Reform Assessment dated 1st July 2024 supersedes the Bus Reform Assessment dated September 2023.

B    Note the final Draft Audit Report, as provided to CPCA by the independent Auditor

C    Proceed with the proposed Bus Franchising Scheme  following receipt by CPCA of the issued Audit Report from the Auditor in a form which is substantially the same as that of the final Draft Audit Report, by taking the following next steps in the statutory process by:

·     giving notice of the proposed Bus Franchising Scheme, and to make copies of the proposed Bus Franchising Scheme, Consultation Document, final Bus Reform Assessment and Audit Report available for inspection.  

·     consulting with all statutory consultees as listed under section 123E(4) of the Transport Act 2000 (the Act), as well as the general public  of the region.

D    Delegate authority to the Executive Director Place and Connectivity to agree and publish the final Bus Reform Assessment and to publish the issued Audit Report as received from the Auditor.

The Executive Director, Place and Connectivity, introduced the report and highlighted key points to Members.

Detail was requested around the considerations at the Overview and Scrutiny Committee on 11 July 2024. Officers provided a summary of what was discussed at that meeting, including the committee’s emphasis on the importance of clear communication:

• Consultations need to be brought to the broadest audience and questions need to be well structured
• The Bus Working Group has requested to review the questions prior to the consultation going live
• A consistent comms message would be ensured through close collaboration with constituent authority communications leads.

Board Members welcomed the feedback regarding the Overview and Scrutiny Committee discussions, commenting that it is a good demonstration of the value of the committee. While the committee had made no formal recommendation to Board, members were reminded that there are mechanisms in place within the constitution to allow that to happen. Officers agreed to speak to the committee members and look at ways to make that input into Board more fluent.

During discussion, the following points were raised and clarified:

·       Councillor Lucy Nethsingha acknowledged the extensive work done to reach this point, thanking all the officers involved. While expressing excitement she also acknowledged the legitimate concerns about the topic. She emphasised the need for improved public transport, particularly for young people, and highlighted franchising's potential to create a more integrated system. She noted the significant financial commitment involved but supported moving to public consultation to allow community input.

·       Al Kingsley highlighted the detailed discussions at Business Board about the project's merits, including social and economic impacts and skill unlocking from a business perspective. He acknowledged unresolved questions about financial modelling and emphasised the need for a comprehensive approach that includes multiple transport forms to attract external funding. He advocated for public consultation to gather feedback and refine the project, noting the importance of sharing the business perspective. He emphasized that the plan is based on worst-case local funding scenario, with a 30-year forward-planning model, and stressed the necessity of high-quality forward monitoring. He stressed that a mixed transport offer is necessary and that investing in bus services' quality and reliability is crucial to changing public behaviour. He underscored the importance of the project being self-funded but also recognised the potential for it to attract broader investment and support.

·       Councillor Bridget Smith thanked the officers for their succinct introduction and expressed South Cambridgeshire's support for the proposals. She noted that the largely rural area suffers from a lack of public transport and acknowledged the extensive work that went into addressing concerns from the original business case. While recognising the inherent risks in such projects, she emphasised that inaction would mean failing in their role as the Combined Authority. Bridget highlighted the challenge of engaging people in the consultation process, stressing the importance of communicating the purpose and potential impact of their feedback. She reminded the board of their obligation to significantly reduce car journeys to impact emissions positively. Success hinges on encouraging active travel and providing effective public transport.

·       Councillor Anna Bailey discussed the complexities of the public transport issue, emphasising that doing nothing is not an option due to the current network's inefficiency. She outlined the choice between an Enhanced Partnership (EP) or franchising, noting that the latter involves the Combined Authority taking on full responsibility. She stressed that better bus services would require significant investment and highlighted concerns that the public might view franchising as a complete solution without understanding the associated costs. She pointed out the 3% annual decline in bus use and the need for a comprehensive, integrated transport system beyond just buses. She emphasised the financial implications of franchising, including the possibility of a mayoral precept, which could limit other spending decisions. She stressed that public understanding of these financial responsibilities is crucial and asked officers to write specifically to parish councils and set up local forums. She expressed discomfort with the timing of the decision, recommending it be postponed until after the May 2025 mayoral election.

·       As a regular train traveller prior to the covid pandemic, Councillor Dennis Jones highlighted the importance of stability and integration in the future of public transport. He noted that before COVID, commercial deregulated routes were more connected, but staffing issues disrupted this. He emphasised the need for a transport system that adapts to future changes, suggesting that franchising could be the foundation for integrating various forms of transport. Franchising is just the beginning of a long-term journey, offering significant opportunities, especially for young people.

·       Noting the expected decline in private car use and the 3% annual decrease in bus use (despite regional growth) Councillor Chris Boden emphasised the need to consider future transportation forms while addressing current needs. He stressed that the consultation needs to be clear that the focus is on choosing between Enhanced Partnership (EP) and franchising; not comparing these to the current situation. He expressed concern that franchising poses significant additional risks with no significant economic benefit. Officers clarified that the 3% figure is national, not local, as local data was insufficient for the Outline Business Case (OBC) audit, necessitating the use of national data. The audit process required the use of robust, long-term data, primarily national, due to limited local data. Moving forward, increasing local data collection will be crucial.

·       Darryl Preston highlighted the need to capture the local picture as accurately as possible. The 3% national figure varies significantly across different regions. The census assumptions for this area were incorrect, and it’s crucial that this is investigated thoroughly.

·       Representing a predominantly rural area with some urban mix, Councillor Sarah Conboy expressed gratitude for the opportunities to engage and emphasised the importance of monitoring engagement across the region. She highlighted the significance of meaningful consultations for the future of the combined authority, noting the detailed business case and thanking everyone involved in the process. She stressed the importance of future growth and environmental issues, noting that challenges vary by geography. She highlighted the awareness of environmental concerns among young people and the necessity of access to public transport for their future goals. She stressed the need for a robust transport system to support the area’s ambitious growth and investment plans.

·       John O’Brien stressed the importance of better integrated public transport from a health perspective. He noted the trade-off between franchising and Enhanced Partnerships should be decided by elected members, with public consultation being crucial. He expressed reassurance about the consultation process.

·       Councillor Edna Murphy voiced support for the recommendations and acknowledged the complexity of the consultation process. She emphasised the need to present information in an easily understandable manner to the public. She aligned with Al Kingsley’s comments, highlighting that investment in infrastructure and education is key to growth, with transport being fundamental. She noted the importance of balancing environmental considerations and stated that investment in quality transport is never wasted.

·       Stating that the business case was guided by experts, legal teams, and external consultation colleagues, Councillor Anna Smith highlighted that local data was offered but changed to national data upon request. Efforts from Westminster would be welcomed to simplify the process. She noted the existing funding sources and the reputational risks involved, stressing the importance of clear strategic decisions and the benefits of control within the system. She mentioned the issue of declining national bus patronage and the need for alternative solutions, emphasising the central role of Board Members in engagement, particularly with disability groups and young people. In support of proceeding to consultation, highlighting the importance of public input, she raised plans to include consent in tiger card registrations and run focus groups to engage diverse demographics, including schools and colleagues.

Officers reassured Board Members that a robust approach would be taken in monitoring and responding to consultation feedback, with a clear process for logging and tracking responses. The exact duration for analysing engagement will depend on the volume of responses. The 14-week consultation period is intentional to accommodate the summer period when many people are away.

In summing up, the Mayor thanked the officers and emphasised the importance of a proper process, including consultation and board involvement. While the Mayor may lean towards franchising, no final decision has been made. The decision to proceed with consultation will be made, and input from the consultation will be carefully considered by all Board Members, informing the final decision.

On being proposed by Councillor Anna Smith, seconded by the Mayor, it was resolved [7 for, 0 against, 2 abstentions] to:

A    Approve the Bus Reform Assessment (also known as the Outline Business Case or OBC Assessment) dated 1st July 2024, as provided to the independent auditor, in line with approvals received at the September 13th 2023 CPCA board and agree that the Bus Reform Assessment dated 1st July 2024 supersedes the Bus Reform Assessment dated September 2023.

B    Note the final Draft Audit Report, as provided to CPCA by the independent Auditor

C    Proceed with the proposed Bus Franchising Scheme following receipt by CPCA of the issued Audit Report from the Auditor in a form which is substantially the same as that of the final Draft Audit Report, by taking the following next steps in the statutory process by:

·     giving notice of the proposed Bus Franchising Scheme, and to make copies of the proposed Bus Franchising Scheme, Consultation Document, final Bus Reform Assessment and Audit Report available for inspection.  

·     consulting with all statutory consultees as listed under section 123E(4) of the Transport Act 2000 (the Act), as well as the general public  of the region.

D    Delegate authority to the Executive Director Place and Connectivity to agree and publish the final Bus Reform Assessment and to publish the issued Audit Report as received from the Auditor.