TfL moves closer to launching public bus company

Transport for London (TfL) is taking steps towards establishing its own publicly owned bus company for the capital. Sources indicate that TfL officials will begin engaging with current bus operators later this month to discuss the feasibility of bringing franchised services under direct management. This initiative aligns with proposals outlined in TfL's business plan earlier this year, which detailed plans to develop a new publicly owned bus company to "reimagine London’s bus network."

The proposed study aims to "assess how this could further support innovation, efficiencies and accountability, and support the needs of customers and the workforce." Currently, 16 private companies operate London's 675 bus routes under franchise agreements. These contracts typically last seven years and include performance targets, though TfL retains control over routes and fare levels. If a public company is launched, TfL could bring existing franchise routes under its ownership as contracts expire.

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Manifesto pledge and legislative changes

Establishing a public bus company was a pledge in the Mayor of London's 2024 election manifesto. Sir Sadiq Khan stated in August 2024 that a publicly owned company would offer benefits such as reinvesting profits back into public transport infrastructure. This move is now legally possible due to the Bus Services Act passed last year, which lifted the previous prohibition on local authorities operating their own bus services.

Union and political reactions

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Trade union Unite has expressed support for the initiative. Regional officer Nadine Edwards stated that the move would "stop money flowing from Londoners and Transport for London to private companies who preside over a race to the bottom culture that impacts drivers and services." Elly Baker, Labour's transport spokesperson on the London Assembly, welcomed the practical steps, suggesting it could grant TfL greater control, improve reliability and safety, and ensure operational profits are reinvested in London's transport network.

However, Festus Akinbusoye, a candidate for Conservative Mayor of London, questioned the necessity of the move. He argued that Londoners prioritise reliable and affordable services regardless of ownership and that the current franchising model is successful. Akinbusoye suggested that TfL should focus on improving existing services rather than "dismantling a successful model," warning of potential higher costs and increased bureaucracy.

A TfL spokesperson confirmed that detailed proposals for a new publicly owned bus company are being developed as part of efforts to "reimagine London’s bus network." The spokesperson reiterated the assessment of how such a company could enhance innovation, efficiency, accountability, and support for customers and the workforce.