Transport for London (TfL) is preparing to examine in greater detail the prospect of establishing a publicly owned bus company, with discussions with existing operators expected to begin later this month.

TfL officials are due to engage with bus operators on whether services currently delivered under the capital’s franchising arrangements could eventually be transferred to a new public operator.

The work follows a commitment contained in TfL’s business plan earlier this year to develop detailed proposals for a publicly owned bus company as part of efforts to “reimagine London’s bus network”.

According to the plan, the assessment will consider whether public ownership could deliver greater innovation, operational efficiencies and accountability, while also better supporting passengers and the bus workforce.

London’s existing bus network operates through a model in which private operators bid for contracts awarded by TfL. These agreements typically last seven years and provide operators with a defined level of income while requiring them to meet specified performance standards.

TfL retains control over key aspects of the network, including route planning and fares.

The capital currently has 675 bus routes operated by 16 private companies. These include Arriva, Go-Ahead London, First Bus London and Stagecoach London.

If TfL proceeds with creating its own operator, services could potentially be brought into public ownership as existing franchise agreements expire, rather than being retendered to private companies.

The proposal would also deliver on a commitment made by Mayor of London Sadiq Khan during his 2024 election campaign.

Speaking to the London Assembly in August 2024, Khan argued that a publicly owned bus company could offer a number of benefits, including the potential to retain and reinvest profits within London’s wider public transport system and infrastructure.

(Picture: Paul Hutton)