Uncertainty remains over whether bus services would have to be removed across Liverpool City Region as recovery funding ends.
A report to the city region’s combined authority transport committee said it is unknown how the area’s bus network will fare as covid-19 financial support ends. The document assessing Merseytravel ’s financial performance for the year 2021/22 detailed that it is as yet unknown whether the removal of funding could lead to services across the region being removed as costs add up.
The assessment comes as the full list of changes to bus services proposed by operators was revealed earlier this week across Liverpool City Region with a public consultation now underway. The report into the portfolio held by Metro Mayor Steve Rotheram, said in balancing the Merseytravel budget for 2022/23 savings and efficiencies amounting to £5m were taken and no provision was made for general inflation.
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It added: “There are a number of risks and uncertainties facing Merseytravel that will impact on its operations and financial position over the coming financial year.” These include the removal of recovery funding to support public transport operators, including the national Bus Recovery Grant and concessionary travel reimbursements.
The report said: “Uncertainty remains as to what impact the removal of this funding will have on the viability of the network and whether this will lead to services being deregistered.” However, bus teams have “worked closely with operators on their plans for the bus network from September 2022 onwards, including network plan and public and stakeholder consultation.”
Additional pressures such as bus contract inflation were apparent at the budget setting process and “the impact of inflation is likely to permeate most areas of transport delivery, pushing up the costs of goods and services and potentially placing pressure on the budget as set.” The budget also required passenger levels to return to pre-covid levels as if not “there is a risk that this will translate into pressure on Merseytravel’s budget: either through lower income or through additional costs arising from the need to fill gaps in the public transport network.”
A quarterly bus update to the transport committee said current passenger levels are averaging around 80% compared to the equivalent period in 2019. It added: “Covid-19 related absence has greatly improved since the last reporting period for bus operators, helped by a removal of restrictions.”
Specific earmarked reserves have been set aside to “assist in mitigating against these eventualities impacting negatively” on the Merseytravel budget, according to the report. It is projected that at the end of this financial year, the reserves position will be £55.7m.
It has been confirmed that an order is to be placed next month with bus manufacturer Alexander Dennis Ltd for the first 20 hydrogen buses for the fleet at the same time as the operator lease and refuelling contracts are signed. A preferred supplier has been selected for fuel supply following commercial negotiations with Arriva and progress is being made on contracting.
The report will be considered by the city region transport committee when it meets at Mann Island next Thursday.
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