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Stagecoach study reveals bus partnerships deliver better value to taxpayers than London-style regulation

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02/08/2007

  • Five-year best value comparison of bus networks in Cambridge and London
  • Passenger growth in Cambridge more than double that achieved by Mayor
  • Public subsidy per passenger in London more than three times Cambridge
  • Evidence revealed as Transport Committee prepares key report on Draft Bill

Commercial bus partnerships can deliver higher passenger growth and better value for money to taxpayers than London-style regulation, according to new analysis released today (2 August 2007) by Stagecoach.

A new five-year study comparing the performance of Stagecoach’s deregulated bus services in Cambridge and the Mayor’s regulated bus network shows:

  • Passenger growth in Cambridge has been more than double the level in London
  • Public subsidy per passenger in London is more than three times that in Cambridge

The new figures have been revealed as the Transport Committee prepares to publish a report tomorrow (3 August 2007) on the Government’s Draft Local Transport Bill following an inquiry earlier this summer.

Brian Souter, Stagecoach Group Chief Executive, said: “These figures prove definitively that partnerships between high quality bus operators and proactive local authorities can deliver better results than bureaucratic regulated systems.

“The success in Cambridge has been achieved at a fraction of the cost in London, delivering better value for money to taxpayers. By building a powerful partnership for passengers and sharing responsibility for improving services, we can deliver better buses right across the country.”

The Stagecoach analysis compared the passenger growth and public subsidy between 2001 and 2006 in London with the equivalent figures for Stagecoach’s citi network in Cambridge. It shows that:

  • Passenger volumes grew by a massive 77.0% in Cambridge compared to 34.4% in London
  • Public subsidy per passenger was only 8.7p per passenger in Cambridge compared to 28.4p for London
  • The total public subsidy in London was £2,336.6 million compared to £2.4 million in Cambridge
  • The subsidy in London equates to more than £320 for every resident in the Capital. This compares with a subsidy of only £22 for every resident in Cambridge

Passengers have flooded on to the buses in Cambridge after Stagecoach invested more than £4million in 2001 in a fleet of 40 new low-floor vehicles, a simplified network and fares structure, 10-minute turn-up-and-go services, comprehensive marketing and improved information for passengers. In the past two years, Stagecoach has invested a further £2m in the citi network and an extra £2m in park and ride services.

Bus use has also been boosted by a strong partnership with Cambridgeshire County Council and other local organisations and businesses, which has included the introduction of important bus priority measures.

In the past 12 months, Stagecoach has carried nearly 8 million passengers on its fleet of 63 buses covering seven citi routes. Around 3.8 million passengers travelled by bus in Cambridge before the improvements to the bus network in November 2001.

Since the original investment five years ago, Stagecoach has worked closely with the County Council to improve the delivery of bus services in Cambridge. The bus network has grown to such an extent that there are now 18 services an hour linking the city centre to the main railway station and 29 services an hour connecting the city centre with Addenbrooke’s Hospital, providing a major boost to integrated transport.

In addition to the growth of the citi network, the use of park and ride in Cambridge is booming, with the city’s five award-winning sites taking thousands of cars off the road every day. Stagecoach is now carrying 3.2 million adult passengers a year on its park and ride services in Cambridge.

Cambridgeshire County Council was named Local Authority of the Year at the 2007 National Transport Awards.

ENDS

For further information, contact:
Steve Stewart, Director of Corporate Communications
Stagecoach Group
Tel: 01738 442111 (office) or 07764 774680 (mobile)
email: steven.stewart@stagecoachgroup.com

NOTES TO EDITORS

  • Stagecoach is one of the biggest bus operators in the UK, running more than 7,000 vehicles in around 100 towns and cities from the Highlands of Scotland to south-west England.
  • Statistics used in the study were drawn from Transport for London, Bus Industry Monitor 2006, Stagecoach Cambridgeshire and the Office for National Statistics.
  • The Transport Committee is expected to publish its report on the draft Local Transport Bill and the Transport Innovation Fund on Friday 3 August 2007.

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