Decision details
Transport Operations - continuation of payments for concessionary fare reimbursement, supported bus service contracts and Community Transport grants
Decision Maker: Chief Executive, West of England Combined Authority
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Purpose:
• Bus operators and transport providers are at real risk of
going out of business before normality is resumed due to
significantly reduced revenue income from fare box, grant awards,
payments for contracted services and/or concessionary fare
reimbursement for an extended period.
• Services may be reduced below an acceptable minimum level
for the duration of the crisis potentially leaving some key workers
unable to access work.
• Permanent loss of operators/providers would mean it would be
virtually impossible to reinstate the full network coverage of bus
operations and transport services after the Covid-19 crisis.
• Continuation of concessionary fare reimbursement and
contracted service payments would cost no more than is currently
budgeted within the Transport Levy (approx. £5m for these
three elements for the Q1 period) but would provide immediate
certainty of cash flow to all operators on a business as usual
basis.
• In order to ensure the continued funding delivers
appropriate services and support, a number of conditions have been
devised which operators will be required to accept before the
funding is released – see background document. These
conditions align well with other Combined Authorities across the
country.
• In parallel, WECA is offering all bus operators business
advice to access to Government emergency loans and grant payments
would assist in supporting businesses at a vulnerable time.
• These actions would provide reassurance that operators have
the support from the Transport Authority for their long-term
survival and future role in the region.
• The Department for Transport has been actively encouraging
Local Transport Authorities to take this step and subsequently
wrote to local authorities on 25 March 2020 urging them to continue
to pay operators in this way – see background document.
• This is an emergency decision taken in light of the COVID-19
pandemic. The West of England Combined Authority constitution
allows the Chief Executive of the Combined Authority, in cases of
urgency or emergency, to take any decision on behalf of the
Combined Authority (after consultation with the Mayor). This
decision has been taken under this provision.
Decision:
• Pay operators from the 2020/21 concessionary travel budget
the same as they would have expected to receive for Q1 April
– June, irrespective of whether journeys are taken.
• Pay Community Transport providers their expected grants for
Q1 April - June.
• Pay operators for the service contracts in place,
irrespective of whether these are operated, again for a limited
period to end of June.
• Payments to be offered immediately to provide certainty of
cash flow, subject to the acceptance of conditions set out in
background document.
• Review further payment position ahead of Q2
2020/21.
Alternative options considered:
Option 1 - This is the option delivered
through the decision set out in this decision record.
Option 2 - Only make payments for claims against actual travel
– this is considered likely to leave operators/providers
vulnerable to business failure.
Option 3 - Make targeted payments based on a judgement of
vulnerability to failure – this is considered to risk
challenge as financial information necessary to make such a
decision is likely to be commercially sensitive and difficult to
access in the time needed to ensure the decision has the desired
effect.
Publication date: 15/04/2020
Date of decision: 20/03/2020
Accompanying Documents: