Industry insider casts doubt over plan to revamp bus services in Wales

Martin Shipton
Serious doubts have been raised about plans that will see a wholesale change in the way bus services are delivered in Wales.
Since the mid 1980s, private companies have been able to run buses where they want as long as they are registered and meet safety standards. Critics say this leaves services vulnerable to being axed if they do not make a profit.
In future, bus companies will bid for contracts instead of operating their own routes, following years of cuts and falling passenger numbers.
But there are warnings the new network will need substantially more money to function with costs estimated at more than £620m over 30 years.
Franchises
The Welsh Government wants to set up franchises overseen by Transport for Wales (TfW), which it owns.
But an industry expert who wishes to remain anonymous contacted Nation.Cymru and said: “As a long-standing professional in the public transport industry, I feel compelled to raise the alarm over Transport for Wales’ recent annual report — and, more significantly, what it reveals about the direction of bus policy in Wales. While public attention has often focussed on rail performance, the more urgent and under-reported issue is the fundamental risk now facing bus services as we move towards franchising.
“Buried within the report is a startling admission: Transport for Wales may not be capable of delivering the franchised bus network it has been tasked with designing and managing. This is not speculation — it is a risk explicitly flagged by the organisation itself. For an agency already under pressure for its mixed performance on rail, the idea of layering on the complex, resource-intensive process of franchising the entire Welsh bus network should raise serious concerns.
“More worrying still is the stark reality that bus patronage in Wales has not recovered in line with the rest of the UK. According to TfW’s own figures, bus usage remains over 20% below pre-COVID levels — a far slower rebound than seen in England or Scotland. That trend alone casts doubt on the ambitious revenue projections upon which the Welsh franchising model appears to be built.
“This is not merely a question of capability, but of affordability. Despite repeated calls for clarity, the full financial implications of bus franchising remain vague. The sector has been given little reassurance about how this system will be funded long term, particularly in the face of inflationary pressures and reduced commercial viability on many routes. And yet, TfW is being positioned as the central delivery body — one which has no significant track record of managing bus operations at this scale.
“It is not difficult to see how this could unravel. The report reads like a risk register written by an organisation bracing for failure, rather than one poised for transformation. Transfer of responsibilities from local authorities — many of whom already feel overlooked — further risks eroding local expertise. And meanwhile, bus operators are left in a state of prolonged uncertainty, unsure of whether to invest, retain staff, or plan for the future.
“We are at a critical juncture for public transport in Wales. Yet the signals coming from TfW — poor performance, unclear delivery plans, and growing internal doubt — suggest that the government’s franchising ambitions may be running well ahead of reality. Those charged with scrutinising this policy must ask: if the public body responsible for delivering it is already warning of failure, who will be accountable when the system falters?
“There is still time to pause, reflect, and course-correct. But doing so requires honesty — from the government, from TfW, and from those of us in the industry who have seen what happens when ambition outpaces capacity.”
‘Investing’
Lee Robinson, executive director for regional transport and integration at Transport for Wales, responded: “Transport for Wales has been continually investing and transforming the public transport network in Wales and the Borders for the past six years. We’ve already invested in our TrawsCymru bus network, with new buses and improvements to timetabling and this has resulted in a growth in passengers. The number of passenger journeys on the TrawsCymru contracts we manage grew 11.4% last year with 1.2 million journeys made.
“We’ve also opened new bus interchanges at Cardiff and Porth, with 3,500 bus services running a week from Cardiff.
“We now want to work with our partners to improve and transform the wider bus network in Wales aligned with Welsh Government ambitions. Through the bus franchising model, public funding will be better invested to create a more efficient and joined up network that integrates across all public transport. Our long-term goal is to create a fully integrated multi-modal public transport network in Wales with one network, one timetable and one ticket.
“We’re committed to make bus travel more reliable and attract more people to use it, which will result in a more financially sustainable network, as has been delivered elsewhere in the UK.
“We have significant experience in managing contracts and partnering with operators who are responsible for managing bus operations and we’re working closely with them, local authorities and the Welsh Government to deliver an improved bus network for the people of Wales. No one partner can deliver this change on their own, so working together is a fundamental key to success
“This is a significant shift for Wales and it is natural that a change of this magnitude should generate concerns. We are working closely with partners across the industry and always welcome the opportunity to talk to individuals, organisations or representative bodies about their specific issues.”
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“But an industry expert who wishes to remain anonymous”…. sorry but why would an industry expert wish to remain anonymous? Being an expert in public transport is surely hardly something someone would want to conceal? And I think people would give alot more credence to what theyve said if they spoke on the record on this matter. For all we know this could be someone who operates a private bus company who stands to lose out from the new bus franchising system operated by tfw.
While the concerns raised may be genuine, what’s odd about this quoted source is the apparent lack of acknowledgement that the status quo doesn’t work for those that want to use public transport, nor any interest in doing bus regulation better by addressing their own concerns which can surely be addressed through trials and phased implementation.
Found the bus company owner!
Part of the problem with buses in Wales is the ownership. We have Cardiff and Newport buses owned by their respective councils, in effect nationalised with any profit re-invested or going to other public services. We have smallish rural bus companies where the profit may stay in Wales. Then we have Stagecoach and Arriva. Arriva was owned by Deutshe Bahn but was sold in 2024 to I Squared Capital based in New York. The object of these companies is to extract profit from Wales. This seems to me to be incompatible with being subsidised. The subsidy per passenger has to… Read more »
I agree, Ap Kenneth, bus services, like all natural monopolies, should be in public ownership – and well-regulated. Nonetheless, there is expertise among the private operators which TfW would be well-advised to capture. There are seemingly few examples of successful franchising. Most franchises over-reward private owners and fail to deliver the quality that a public service must provide. The idea that a public service – like bus and train services – should be ‘profitable’ (however defined) is for the birds, a product of wholly faulty (cousin of Basil) neo-liberalist ideological nonsense. Bus are doubly cursed as the mode of the… Read more »
The problem with those who demand profit in public services is that they do this too narrowly. It’s not about the revenues of running a bus service less the costs. It’s about the GDP and tax revenues those services enable across the whole economy. There should be analysis that says, what would happen to GDP and tax revenues if all public transport was shut down, and again if it was developed to its fullest potential and everyone could easily and cheaply travel wherever they wanted whenever they wanted. These two scenarios should inform public transport spending and investment, not the… Read more »
Yes, you’re partly right, Bryce. It is certainly not just about the bottom line of a bus company. But GDP is a crap measure of anything (nothing we value, as Bobby Kennedy put it). And tax revenues fund nothing. That is a neo-liberalist myth. Any analysis based on them would be a microeconomic folly. The government creates all money (plus licensed banks through temporary loans), and a prudent one would avoid borrowing or over-reliance on trade surpluses. Similarly, a prudent government (not the UK currently) would have a comprehensive taxation system that would, inter alia and primarily, ensure control of… Read more »
And back to the point, feel free to suggest a different metric that can be used to measure the real benefits of public transport. Because if there isn’t one we have to use GDP and tax revenues.
If people can access more jobs and opportunity because they can travel further, more quickly, cheaply and reliably that’s better for everyone and must be factored into a business case for public transport spending, both upfront spending and any subsidy.
The only metric that matters in public transportation, Bryce, is ridership. Much more work will be done at home or close by in future. The demand for commuting, the backbone of bus revenues, will diminish. The Valleys as commuterland for Cardiff? That’s 90s thinking. Bus and tram services will increasingly be designed to meet leisure needs, notably the 24h city. No business case I’ve ever seen has incorporated the externalities – say, the pollution of air, land and sea from tyres, brakes and combustion, or the impact on wildlife – in any meaningful way. In other words, one can draw… Read more »
Investment motivated only by increasing ridership will result in more investment in urban richer areas at the expense of more remote and poorer areas. It’s the same thinking that makes Westminster spend all their transport money in London, because more ridership equates to revenue which equates to a quicker return on investment. Crossrail will carry far more extra passengers than Swansea electrification therefore London came first.
Apologies for having to correct you again, Bryce, but I did not say ‘increasing ridership’, just ridership. The former invites a chicken and egg situation – which comes first? I don’t support the sub-optimisation implied by more investment in urban richer areas. Fair allocations to each region (I argue for five regional authorities) in Cymru are essential. It is the gross ridership which justifies public investment in securing the environmental and economic benefits of public transportation. But the emphasis should be on access not mobility – the ’15min city’ is an example. Once capital funding is made available for new… Read more »
“benefits are much greater than fare income” I agree but you need numbers not feelings and intuition to prove this. If increasing ridership is not a goal then ridership can’t be used as a metric of success. Because imagine the transport office has two similar projects on the desk but only funding for one. How does it decide which to fund? And regional funding allocations is important. It was quite wrong to cancel Swansea electrification due to “poor value for money” only to spend it in London. It should have been spent on a better value for money project in… Read more »
GDP has almost become a law of nature in the minds of the majority. While buses can boost individuals economic prospects by opening up opportunity with a concurrent boost for tax revenue it is as you state a useless measure and there are many more metrics that can be used. Good quality electric buses I would argue can persuade some people to move from cars since they have such a better ridership experience and trams are only ever going to be offered in the denser urban areas. The emphasis on cost is why the T3 bus Wrexham to Barmouth has… Read more »
What metrics would you suggest that would help a transport department with limited finances decide between two projects if they can only fund one.
Traditionally when borrowing is involved they want to recoup this borrowing as soon as possible which always happens in the wealthiest most populous areas.
How do you convince the beancounters to take a different view?
I am not arguing that they should be profitable only that locally owned private bus companies keep more money circulating in Wales than exporting it to the US.
I would argue that TfW needs to stop using commercial companies for its Traws Cymru services, it can buy out the smaller commercial players along side local councils to indicate the direction of travel to the larger players.
There is no real reason why the Welsh Government should not become the RosCo for the bus sector.
I like the tram suggestion.
France has a good transport network. I believe buses are state owned – lots of information at bus stops / tourist centres etc – so those not using internet have details. SNCF and Air France have offered combined plane train tickets for over 30 years – so French govt then banned flights on certain route; i.e. favoured Air France over easyJet.
TfW should probably trial a new model in one region, then rollout after five years; plus employ a French transport expert on a high salary and a decent bonus paid if bus passenger utilisation and ontime performance increases.
Or change TfWs ownership structure; give SNCF or Germanys DB Rail 20% ownership and 25% profits – this will inventivise them to share best practices.
“costs estimated at more than £620m over 30 years”
Or about 13p per citizen per week for a bus service that actually works.
I worked in the bus industry in Wales for twenty years and I know that it certainly does need reform. But, the current proposals aren’t the answer; they much favour the huge multi-nationals, all based outside Wales, whose prime objective is to make profits for their shareholders, mainly now foreign venture capital types. The danger is that this could lead to the disappearance of so many of our small, indigenous operators who are the very backbone of our public transport system across Wales. I hope that there is enough opposition to make the Government modify their plans and offer some… Read more »
What would you do differently to achieve this?
With due respect, John Pockett, the Government’s aims are misconceived (ideological blindness again) and the means inappropriate.
As you say, they are a threat to many of our competent indigenous operators.
What is your proposal?