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Burnham Hails West Midlands Bus Franchising Deal

Financial Times Companies •
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Andy Burnham hailed changes to bus services in the West Midlands as “the single biggest act of public control since I came into office”, though routes will be operated by private companies. The UK prime minister announced a new partnership between government and West Midlands Combined Authority (WMCA) to control bus services after Mobico Group, parent of National Express, threatened to quit after running 1,400 buses for four decades.

The WMCA will shift to a franchised model where it sets fares and timetables while private firms run buses. Burnham called it a “very big day” and said services were “close to collapse” under the previous deregulated system. The deal includes £11.5mn of new government funding to maintain services until franchising begins.

Mobico will sell its bus business to WMCA for £102mn, with £24mn upfront proceeds. The franchise plan, drawn up by Richard Parker, mayor of the West Midlands, in January 2025, mirrors models in London and Greater Manchester. The deal concludes in November.