ALBUM concerned SMEs getting left out of franchise contracting

“We must be cautious not to lose the valuable contributions made by SME operators” – Bill Hiron, ALBUM Chair

The Association of Local Bus Managers (ALBUM) has expressed concerns regarding Transport for Greater Manchester’s (TfGM) decision to award all but one of its local and school bus contracts to larger operators. This shift in the balance of work could have potential implications for the local bus operating sector, particularly for smaller and medium-sized enterprise (SME) bus operators, according to the Association.

Given the current interest in extending franchising across more areas of the country, ALBUM is particularly concerned about the future of SME bus companies. It stresses many smaller companies provide essential rural bus and school services, serving as vital links within their communities. It says that with their deep knowledge of local needs, they play a crucial role in supplying many essential bus services.

ALBUM has concerns that the franchising process may unintentionally exclude smaller companies and reduce the number of suppliers available to local authorities. The experience in Greater Manchester, where only two smaller operators have been awarded contracts, reinforces these worries about the challenges faced by SME companies in areas that adopt the franchising model.

A statement from ALBUM said: “We hope that all local authorities considering the franchising model will recognise the valuable contributions that small and medium-sized companies have made and continue to make. Local authorities should strive to support SME companies in all their procurement activities, including bus services. By doing so, they can help ensure a diverse and competitive bus market that benefits passengers and communities alike.”

“It’s crucial to find ways to support [SME operators’] continued participation in the market” – Bill Hiron, Chair of ALBUM

Bill Hiron, Chair of ALBUM, said: “We must be cautious not to lose the valuable contributions made by SME operators. It’s crucial to find ways to support their continued participation in the market.”

ALBUM has been actively engaged with government officials to highlight the challenges faced by SME bus operators and advocate for policies that promote their sustainability. Before the general election, Bill Hiron and ALBUM’s Policy Advisor, Tony Depledge, met Simon Lightwood, now the Parliamentary Under-Secretary of State for Local Transport, to discuss these issues and seek support for the sector.

Bill continued: “While increased attention on buses is positive, it’s essential to address the concerns of SME operators. Their unique strengths and contributions to local communities must be recognised and protected.”