North East bus council takeover plan rejected

Plans to bring bus services in north-east England under council control have been turned down.

Currently, private operators decide which services to run and councils subsidise less profitable routes.

The North East Combined Authority (NECA) had voted to introduce a scheme making it responsible for routes and timetabling, and able to contract services to private companies.

This has now been rejected by the local independent traffic commissioner.

The plan, known as a quality contract scheme (QCS), would have covered services in the Tyne and Wear area, and those crossing into County Durham and Northumberland.

If given the go-ahead, it would have been run by Nexus, which operates the Tyne and Wear Metro.

A board chaired by the traffic commissioner for the North East found Nexus failed to comply with the statutory requirements on consultation.

It said the scheme could not demonstrate it would increase use of bus services, would not have provided value for money, and imposed "disproportionate adverse effects" on operators.

Tobyn Hughes, managing director of Nexus, said: "We are extremely disappointed.

"We simply disagree with many of the conclusions, and we will be discussing next steps with NECA."

The decision to block plans for councillors to run the bus network has implications well beyond the area.

Giving groups of councils control of their local buses is a key part of the devolution deals already signed with the North East, Manchester and Sheffield, and part of the legislation currently going through parliament.

Councils believe that they could use the powers to cut through what they see as a chaotic network of competing companies with different fares and ticketing systems.

But the transport commissioners decided the plan was simply unaffordable, the councils would eventually have run out of money to keep the buses running.

The North East councils will now need to relook at their plans - but government ministers might also have to revisit them.

Nick Forbes, leader of Newcastle City Council and transport lead for NECA, said: "Today is an exceptionally disappointing day for bus passengers.

"The proposals were put forward in the best interests of the travelling public."

However, the decision has been welcomed by bus companies.

Go North East said it already provided "good quality, value for money services that meet customers' needs at no risk to the tax payer".

Stagecoach said: "We believe there are far better models for improving public transport offer in major cities based on true partnership working between public and private sectors."