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North East Combined Authority

North East Combined Authority
North East Combined Authority multi-modal ticket increases are on the agenda at Cabinet today.

"In addition to the introduction of the NECA adult single bus fare cap, the following BSIP fare caps
are proposed for the period 1 April 2025 to 31 December 2025: 

• The £1 single fare and £3 daily cap for people aged 21 be retained at the existing price points. This is estimated to cost £14.5m for April to December 2025;
• Adult multi-modal daily caps to be adjusted to £5 for Durham (from £4), £6 for Northumberland (from £5), £6.80 for Tyne and Wear (from £6), and £7.50 for the entire  North East CA area (from £6.80).
Cabinet is asked to approve the revised levels of these fare caps, at an estimated cost of £4.4m for April to December 2025."

Source: 14.4 - Page 15 - https://www.northeast-ca.gov.uk/download...y-2025.pdf

It's really disappointing to see these fares raised so soon after the tickets were launched, but I think their hands have been somewhat forced by the single-fare cap being raised, and then refusing to fully support the difference (per other MCAs). Durham at £4 is currently cheaper than two singles. 

I'd have actually liked to see some proper forecasting on fare increases, or a commitment to cap the %, instead of this almost reactive annual process that we've experienced in the commercial world. The Northumberland ticket being £6 or the Regionwide ticket now being £7.50 suddenly doesn't sound as attractive!

The same report also highlights how significant BSIP funding has become, and what it's costing us: "Secured bus services, where BSIP funding significantly augments existing levy-funded budgets. 47% of secured bus mileage in the North East is funded by BSIP revenue funding, at a cost of approximately £16 million per annum. This equates to 12% of the total bus network being reliant on BSIP revenue funding."

More worryingly, there's a highlighted risk of funding beyond 2025-26. The report states:

"Whilst BSIP funding has been confirmed until March 2026, funding from that point onwards is less clear:
• Post-BSIP revenue funding for buses is currently under consideration by the Government.
• The Government’s forthcoming Spending Review is expected to address the problem.
• It is also possible, but far from certain, that the discussion becomes related to single settlement and/or CRSTS2.
• There may be some residual BSIP revenue funds to rollover further into 2026-27, subject to DfT approval."

Not only does this present a risk for the future of the BSIP multi-modal tickets; originally this was a two-year arrangement (2023-25, albeit a lengthy delay to actually launch them), so this is effectively the first annual extension, but it also presents a cliff-edge for a lot of services. I think as we've seen with the minute the £2 cap was raised, some operators won't think twice about swinging the axe about.
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