North East bus companies could be forced into changes in return for handouts from authorities

A slump in passenger numbers has seen firms forced to rely on handouts from councils and government ministers to keep services running since the start of the coronavirus pandemic.

And while transport chiefs have previously raised the prospect of future cash coming with strings attached, they have now suggested this could extend even further into day-to-day operations.

Tobyn Hughes, managing director of Transport North East, said conditions could be attached to ‘local payments’ in the future.

He added: “[Council leaders] have expressed a desire [these payments] be used as a platform for better engagement with local bus companies.

“They have also expressed a concern that it is not readily apparent how the authorities can be assured value for money is being achieved.

“And they have also discussed at length the need for central government to take note of the need for continued bus payments for as long as income is affected by coronavirus.”

Hughes, who is also managing director of Metro operator Nexus, was speaking at a meeting of the North East Joint Transport Committee, which was held by videolink and broadcast via YouTube.

North East council bosses have been paying out up to £1.5million every week to bus companies to cover lost income from travellers advised to stay home during the COVID-19 lockdown.

Before the crisis almost two thirds of funding for bus services came from passenger fares, but this has now slumped to just five per cent, with the rest provided by the Government and local authorities.

Hughes suggested future agreements could see passenger data and account books handed over to councils in exchange for future payments.

And an ‘engagement forum’ could also be created to give elected leaders a say over fare levels and routes.

Peter Jackson, leader of Northumberland County Council, told the panel: “The crisis has made us realise we have a duty to support essential public services, like bus transport.

“But it has also highlighted that we are majorly funding bus transport.”

A message from the Editor:

Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.

In order for us to continue to provide high quality and trusted local news on this free-to-read site, I am asking you to also please purchase a copy of our newspaper.

Our journalists are highly trained and our content is independently regulated by IPSO to some of the most rigorous standards in the world. But being your eyes and ears comes at a price. So we need your support more than ever to buy our newspapers during this crisis.

With the coronavirus lockdown having a major impact on many of our local valued advertisers - and consequently the advertising that we receive - we are more reliant than ever on you helping us to provide you with news and information by buying a copy of our newspaper.

Thank you