Transport for London (TfL) is set to begin talks with bus operators later this month to explore the feasibility of bringing the capital's franchised bus services under public ownership, according to sources familiar with the discussions.
The move follows proposals first outlined in TfL's business plan earlier this year, in which officials stated that as part of a drive to "reimagine London's bus network, we will develop detailed proposals for a new publicly owned bus company for London." The study will "assess how this could further support innovation, efficiencies and accountability, and support the needs of customers and the workforce."
Current Franchise Model and Its Operators
Under the existing system, private firms bid to run franchised services, with contracts typically lasting seven years and setting performance targets for a set income. TfL retains control over routes and fare levels. There are 16 privately owned operators running the capital's 675 bus routes, including Arriva, Go-Ahead London, First Bus London, and Stagecoach London.
Should a publicly owned company be established, TfL could bring services under its wing as franchise contracts expire, a move that would fulfil a promise made by Mayor Sadiq Khan in his 2024 election manifesto. In August 2024, Khan told the London Assembly that there were "lots of upsides in us having a publicly owned bus company," including the ability to reinvest profits back into public transport infrastructure.
Legal Changes and Union Support
TfL is now able to pursue this option thanks to the Bus Services Act passed by the Labour government last year, which lifted the ban on local authorities setting up their own bus companies.
Trade union Unite welcomed the progress, with regional officer Nadine Edwards saying: "Unite has been calling for London buses to be brought back into public ownership for a long time. This will stop money flowing from Londoners and Transport for London to private companies who preside over a race to the bottom culture that impacts drivers and services."
Political Reactions and Next Steps
Elly Baker, Labour's Transport spokesperson on the London Assembly, has repeatedly questioned the Mayor on the issue. She told the Local Democracy Reporting Service (LDRS): "Bringing some bus operations directly into public ownership could give TfL greater control over how services are run, improve reliability and safety, and mean money made from operating services can be reinvested in London's transport network." She added: "If TfL is now taking practical steps towards establishing a publicly owned bus operator, I very much welcome that progress. I've been making the case for TfL to explore this option for some time and I want to see it developed into a serious part of the plan for improving London's buses."
However, Festus Akinbusoye, who is running to be the Conservative candidate for Mayor of London, argued the move is unnecessary. "Londoners want reliable, affordable buses; they don't care who owns the company operating them. Sadiq Khan is trying to fix a problem that simply isn't there. London's bus franchising model works," he said. "Other cities in the UK and internationally aim to replicate the success of London. Rather than spending taxpayers' money and years of effort setting up a publicly owned operator, we should be asking how that successful model can be replicated elsewhere in the country." He added: "All that bringing bus operations in-house achieves is higher costs and more bureaucracy, not better services."
Last week, Reform Assembly Member Keith Prince told a fringe event at the party's annual conference in Birmingham that the rest of the UK would do well to learn from London's franchising system.
A TfL spokesperson said: "As part of our work to reimagine London's bus network, we are currently developing detailed proposals for a new publicly owned bus company for London. We are assessing how this could further support innovation, efficiencies and accountability, and support the needs of customers and the workforce."
The discussions with operators this month mark the first practical step towards a potential change in how London's buses are run, with the outcome set to shape the future of the capital's transport network.
