As the cost of living, fuel prices and the damage caused by air pollution spiral upwards, public transport needs now more than ever to be accessible, affordable and efficient for passengers. Even before the pandemic, this was a refrain repeated often by leaders in Greater Manchester.
But times have changed. During Covid lockdowns, passenger numbers plummeted, decimating revenue for trams and buses in Greater Manchester.
They were kept running thanks to a £278m bailout from the Government. Metrolink, which had not previously needed regular subsidy, received a recovery grant of £124m between March 2020 and April 2022, including an extra tranche of £20.5m to bolster the service until October.
READ MORE: More than £1bn given to Greater Manchester to boost transport network
Earlier this month, following an announcement from bus operators here that they intended to cut 33 non-profit making services and curtail 32 more, and amid similar warnings from across the country, the Government finally found an extra £130m to keep services running until March next year. Although there will still be financial challenges as Mayor Andy Burnham forges ahead with plans to reform buses through a franchising system, the urgency has passed for now.
But what about Metrolink? With passenger numbers having fallen from 45.6m in 2019 to 30.6m over the last 12 months, transport bosses admit the future is still 'unclear' as Treasury funding reaches the end of the line.
It raises serious questions over the future of Manchester’s tram network, which is not only a vital mode of public transport for thousands of passengers, cutting car use, congestion, carbon emissions and in many cases, costs, it's also linked to the economic success of the city.
Government 'holding city to ransom' over bail-outs
When the M.E.N spoke to Metrolink boss Danny Vaughan in January - before the Government’s April bail-out had been announced - he warned they couldn’t rule out fare hikes or service cuts. He said rocketing electricity prices alone would lead to a £6m increase in operating costs next year, with losses of up to £40m predicted when other bills and passenger decline were factored in.
This week, meanwhile, the Department for Transport announced £1.2bn funding for Transport for London, for future projects and to 'protect the network against potential lost revenue caused by uncertainty of post-pandemic demand'.
The absence of such a rescue package for Metrolink was described by one rail insider as 'holding the city to ransom', while Roger Jones, former chairman of the Bus Services Committee, said 'mothballing' services as a result would be a 'complete and utter disaster'. He said there may be an argument for reducing some schedules if cash can' t be found, but said a better direction would be to cut fares to boost patronage - as Andy Burnham is doing on the buses.
Mr Jones said: "Metrolink has never been properly subsidised which is why fares are higher than we'd like. If the Government won't make up the deficit we have to find some money through council tax or somewhere. If one of the purposes of reducing fares on buses is to get more passengers then maybe we've got to do the same thing with trams
"I think all of us accept that if trams could receive the same subsidy as trains and buses fares would be much lower. But we shouldn't start cutting Metrolink, it's taken us so long to expand the network, the last thing we want to see is a reduction."
The M.E.N. also asked Doreen Dickinson, Conservative chair of the Metrolink and Rail Sub-Commitee, for her views on whether the Government should direct more cash at Metrolink. She said she was yet to be fully briefed by officers and would comment when she had more information.
There's no doubt that boosting passengers on Metrolink and the buses is key to their future health. Both Mayor Andy Burnham and transport commissioner Vernon Everitt, a former director for Transport for London, have been candid on this point.
But the Government’s stance is that operators need to ‘develop effective and financially sustainable networks in light of changing travel patterns post-pandemic’. What this means in practical terms - and whether it might translate to a hit on services or passenger pockets in the longer-term - remains to be seen.
Final payments of grant funding were reliant on transport bosses sharing their plans for a ‘sustainable network not reliant on Covid-19 government funding’. The reviews, taking into account all modes of transport, were aimed at making authorities consider ‘level of services required’ and ‘commercial viability’.
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The documents, which tasked operators with delivering ‘value’ bus and light rail networks to communities, while curbing the need for more subsidy cash from Government, were submitted in June. They included detailed breakdowns of passenger numbers and revenue from all services in the region.
Even aided by these reviews, bold plans for bus reform and new fares, experts have warned that efficiency, better integration and shoring up passenger numbers alone are unlikely to make the grade to keep Metrolink running as it currently does.
Transport Commissioner Mr Everitt, meanwhile, said they remain in ‘continuous dialogue’ with the government about Metrolink funding and that they were grateful for cash already received. But he added: “The current funding package runs until October and it remains unclear what will happen after that. What is clear, however, is that we will need further support while we take action ourselves to attract more people to the network and return it to a sound financial footing.
“We have already seen encouraging signs in passenger numbers, especially for leisure trips, and we must continue to offer frequent and reliable transport services as a sustainable alternative to car use in our growing region.
“We are taking decisive action to attract more ridership through the creation of the Bee Network. Single bus fares are being capped at just £2 for adults from September and we will also be launching a major new campaign to promote the benefits of public transport.
“We will work with employers to help promote this too. In a little over a year, we will see the first franchised bus routes in operation and we will begin to integrate our value for money fares offer across Metrolink and buses to make everything simpler to use. We’ll integrate the local rail network into this in due course too.
“Continued government funding to support our own efforts remains important while this action takes effect. We will continue making that case so that we deliver the strong and sustainable public transport network that is so vital to the lives of everyone in Greater Manchester.”
With seven lines to 93 stops covering nearly 60 miles, Metrolink has become the largest light rail network in the UK. As part of a transport strategy up to 2040, new Metrolink lines are being considered, including a link-up to Manchester Airport's HS2 station - although this is currently another bone of contention between leaders in Greater Manchester and the Government.
Up to 2030, it's hoped that tram-trains can be developed to support links to areas historically not served by Metrolink. As recently as last month, Boris Johnson said plans to extend to Stockport were being 'actively studied' by the Department of Transport following the allocation of nearly £14m for a new train station, a cycling route and business park.
Longer-term ambitions include tunnelled ‘metro-style’ services under the city centre. One official told the M.E.N. that future plans would not be impacted by the end to Government funding.
The M.E.N asked the Department for Transport if more funding for Metrolink was on its way. A spokesman said the GMCA had been awarded more than a billion pounds over the next five years for local transport, including for Metrolink schemes and improvement.
He added: “Earlier this year we announced a £184m package of support for local transport services, including £20.5m for Metrolink to help keep tram services running in Manchester. The package also gives operators the opportunity to develop financially sustainable networks in light of changing travel patterns post-pandemic.
“Manchester buses will also benefit from the recently announced £130m support package, which runs to March next year.”
As background, a spokesman said the April-October funding would be the ‘final tranche’ of pandemic-related cash for light rail operators.
In its Spring guidance to transport authorities, the Government told regional leaders that network reviews were ‘intended to smooth the transition away from government funding and avoid a cliff-edge in October’. However, as the 11th-hour pot for buses delivers a vital post-pandemic shot to the network amid the threat of service cuts, Metrolink is not on a clear track to safety just yet.
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