The Association of Local Bus Company Managers (ALBUM) welcomes the news that Transport for Greater Manchester (TfGM) is taking further steps to support the inclusion of small and medium-sized bus operators in the next round of franchising procurement.
As the trusted voice of SME operators across the UK, ALBUM has consistently called for a more equitable franchising approach, one that recognises the value local operators bring to communities and the economy.
We are encouraged to see TfGM adopting several practical measures that reduce barriers to entry for SME operators. These include:
- Maintaining Small Franchises with a PVR that is proportionate to SME operators’ size and experience
- Small Franchise bid requirements are reduced compared to those Large Franchises, in terms of page limits and financial tests
- Large Franchise Depots cannot be used for Small or School Franchise operations
- Briefing sessions designed primarily for SMEs to guide them through the procurement process
ALBUM believes that a diverse range of franchise sizes, including smaller lots, will encourage greater participation from SMEs, leading to benefits such as:
- Increased competition: Smaller lots will attract more bidders, driving down franchise prices and improving service quality
- Enhanced local economy: SME operators often source more locally, boosting the regional economy
- Improved service quality: Smaller operators often have a detailed understanding of local markets and can provide more personalised and responsive service
- Greater driver pool:Smaller companies can attract drivers who may not be interested in working for larger corporations and thus increase the total number of drivers available
ALBUM urges that, in future procurement exercises, all franchising authorities consider how to ensure that SME operators can continue to have a valuable part to play in the provision of public transport services in their areas, for example by:
- Awarding higher quality scores to Large Franchise operators who agree to sub-contract a proportion of work to SMEs
- Restricting some Small Franchises (and not just school day services) to bids from SME operators only
- Micro-Franchising
- Noting the changes TfGM are making to encourage SME involvement in the franchise market
Franchising must work for everyone not just the largest players. ALBUM continues to advocate for a balanced system that enables SMEs to thrive alongside larger operators, ensuring reliable, responsive and community-focused bus services.