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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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RE: North East Combined Authority
They might have better control of the costs if they actually ran the services. Then they could use profitable services to fund these caps, rather than handing them straight to the operators' shareholders.
RE: North East Combined Authority
Might be better if operators are told to take responsibility for their 'goldmine' routes! If they don't (and don't maintain frequencies)......ban them or increase bus station / other charges!

Might be better if operators are told to take responsibility for their 'goldmine' routes! If they don't (and don't maintain frequencies)......ban them from interchanges or increase bus station / other charges!
RE: North East Combined Authority
(28 Jan 2025, 12:15 pm)Adrian wrote 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.

The money being spent on subsidised services is absolutely scandalous. 
It really rams home the state of the network and how those who supposedly have all that knowledge within the bus industry over the years... Well... Maybe they didn't after all. 

Mind, NECA have wasted a fair chunk of BSIP too mind, as discussed on the forum in the recent past.
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RE: North East Combined Authority
(28 Jan 2025, 10:16 pm)Andreos1 wrote The money being spent on subsidised services is absolutely scandalous. 
It really rams home the state of the network and how those who supposedly have all that knowledge within the bus industry over the years... Well... Maybe they didn't after all. 

Mind, NECA have wasted a fair chunk of BSIP too mind, as discussed on the forum in the recent past.

There's something particularly scandalous about Go North East succeeding in misappropriating BSIP funding for high frequency services for which they then manage to fail to meet PVR - for reasons ranging from having overstretched their commitment to Metro Replacement work to "extreme temperatures" - and recording profits in the £millions in the latest accounts while remunerating best part of £1 million at director-level and funnelling undetermined (and if published, I dare say fudged) amounts into the coffers of expensive day-rate consultants hanging onto the gravy train. It's like watching a beached whale die. 

I'd argue it's really NECA's fault for signing BSIP funding away to them, with insufficient scrutiny and consultation, for moronic improvements which do nothing in the way of supporting lifeline services - that largely forgotten thing BSIP was introduced in the spirit of. But then, these are the same people who, under the previous guise of TNE, celebrated being awarded just £163.5 million of the £804 million they had sought in their initial bid for BSIP funding. With the fullness of time, it looks like a decent chunk of that has been pissed away into the wind. Ostensibly, a failed organisation all round.

Between both the public and private sector, I can't help but feel reminded of the pigs in Animal Farm.
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RE: North East Combined Authority
What is alarming to me is the amount of BSIP money being used to pay for every day supported services - that is going to be a huge problem.

The elephant in the room is there is no easy way of reducing the cost of running a bus service.

There might be marginal savings by franchising and removing duplication where it's not needed. But i'd argue that is already happening with fully secured services only really running where there is no reasonable commercial alternative. And despite what other say elsewhere, operators already cross subsidise - there is no way most of the Stagecoach commercial network would run past 19:00 if they weren't really really busy during the day.

As Leon Daniels, former head of surface transport at TfL recently said, it's Horsebus economics. Somebody has still got to feed the horse and pay the driver - and that costs.

I hope the Mayor has a functioning abacus!
RE: North East Combined Authority
(28 Jan 2025, 4:55 pm)deanmachine wrote They might have better control of the costs if they actually ran the services. Then they could use profitable services to fund these caps, rather than handing them straight to the operators' shareholders.

Ran the services or franchised them out, absolutely.

The biggest issue with our capped fare scheme is that it's almost entirely written to favour large operators, and as I suggested at the time, is likely the reason why it took so long to implement. Even if the TNE tickets created growth beyond our wildest dreams, there's a section in the scheme that requires a recalculation on actuals each year, so operators get to cash in based on a publicly-funded and ran initiative. 

This is why people are so sick of private rail and buses. It's not because they believe it'll instantly be better, it's because they're sick of having the proverbial ripped out of them.

(28 Jan 2025, 10:16 pm)Andreos1 wrote The money being spent on subsidised services is absolutely scandalous. 
It really rams home the state of the network and how those who supposedly have all that knowledge within the bus industry over the years... Well... Maybe they didn't after all. 

Mind, NECA have wasted a fair chunk of BSIP too mind, as discussed on the forum in the recent past.

It's a disgrace, and many of the same people are still advocating for privately owned and operated buses now. 

I'm pleased I was on the right side of the fence 12 years ago. 

(29 Jan 2025, 7:36 am)DeltaMan wrote What is alarming to me is the amount of BSIP money being used to pay for every day supported services - that is going to be a huge problem.

The elephant in the room is there is no easy way of reducing the cost of running a bus service.

There might be marginal savings by franchising and removing duplication where it's not needed. But i'd argue that is already happening with fully secured services only really running where there is no reasonable commercial alternative. And despite what other say elsewhere, operators already cross subsidise - there is no way most of the Stagecoach commercial network would run past 19:00 if they weren't really really busy during the day.

As Leon Daniels, former head of surface transport at TfL recently said, it's Horsebus economics. Somebody has still got to feed the horse and pay the driver - and that costs.

I hope the Mayor has a functioning abacus!

Your costs are always going to go up, I agree, but that's the same in every other business or service. The difference is that growth still occurs in the wider-world, whereas two of the three principle operators up here have been more than happy to try and manage the speed of decline.

Both GNE and Arriva, in my opinion, have attempted to cut their way towards a profit for the best part of 15 years now. I could count on one hand the amount of workable initiatives, designed to build and retain customer numbers, over that same time period. If something is seen as not working, it's cut and that resource isn't reinvested; it's a cost saving on the balance sheet.

It's admirable if Stagecoach are cross-subsidising. It's how it should be done, but I know that other operators will look at services on a trip by trip basis, yet alone thinking about cross-subsidising others. Even though I'd say they have more need than Stagecoach to do it, due to their network models being significantly different.

I think in addition to a functioning abacus, she needs a good team around her to deliver this. We all know she has no background in transport, and I worry that the most senior people there that do, are the wrong people. Time will tell!
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RE: North East Combined Authority
(29 Jan 2025, 11:16 am)Adrian wrote It's admirable if Stagecoach are cross-subsidising. It's how it should be done, but I know that other operators will look at services on a trip by trip basis, yet alone thinking about cross-subsidising others. Even though I'd say they have more need than Stagecoach to do it, due to their network models being significantly different.

I think in addition to a functioning abacus, she needs a good team around her to deliver this. We all know she has no background in transport, and I worry that the most senior people there that do, are the wrong people. Time will tell!

Ignoring GoNorthEast as we know what they're about but I think it's a bit unfair to give Stagecoach the credit here when they've cut services like the 32 and 35 and are happy to take money for the 1 and 30/31/36 to boost the frequency but criticise Arriva for it. 

As far as I'm aware, bar the evening services on the 57a, the whole of the Northumbria network is fully commercial ignoring the extra BSIP enhancements which are routes which they never ran in the first place (2 BPH Cramlington to Morpeth and Ashington and the 434 - these were always hourly etc). 

Similar for the whole of Tees Valley which I believe their network is fully commercial. 

Also a monkey could run the 1/30/31/37/38/39/40 in Newcastle and make a profit yet Stagecoach still needs tax payers money to make these work...

Arriva Durham Country is a bit more questionable but then again the routes aren't great routes, small villages linking to multiple dead towns etc.
RE: North East Combined Authority
Nobody in the media actually cares about buses unless a Mayor is tubthumping or an operators messes up. (I don't count puff pieces released by Nexus, NECA and bus operators)

All you see in the critical media is about the new trains, Metro fares rises being deferred. Absolutely nothing about the funding cliff edge which appears to be there for buses next year.

I appreciate local media has been hollowed out, but it's in black and white in the minutes what the issues are.

It's shameful. No doubt they "find out about it" February 2026!
RE: North East Combined Authority
(06 Feb 2025, 7:17 pm)Andreos1 wrote Middlesbrough to Newcastle for 9am? Buses, trains and automobiles. 
3 presenters found out how easy or difficult it would be. 

https://www.facebook.com/share/r/15eX2fAS6Z/

https://www.bbc.co.uk/iplayer/episode/m0027q25

Nice to see a 4 pot heap of ***** doing the rounds on the X10 on the A19 judging by the video, whilst a few people are probably well spread out enjoying a double seat from the Harry Clasper or Dunston Monument.....with more than double the off peak capacity pre Nov 2019.

GNE need to address this ASAP! Martijn said on the video "right bus for right route". Fair enough excuses back then for the eventual Sept 2021 and Jul 2022 changes.....but not now when changes could be made to address the Ellison Road bridge issue and allocate the Enviros to work where actually needed!

No wonder GNE's engineering is in trouble if Riverside are needing to throw anything they can find on the X10 (with not enough cover / rotation).....and Consett are having to pull out an E200MMC or StreetLite to cover the X30/X31/X32 or X70/X71/X73 also bearing in mind still not enough 'newer' vehicles to cover the X45!
RE: North East Combined Authority
(06 Feb 2025, 10:40 pm)L469 YVK wrote Nice to see a 4 pot heap of ***** doing the rounds on the X10 on the A19 judging by the video, whilst a few people are probably well spread out enjoying a double seat from the Harry Clasper or Dunston Monument.....with more than double the off peak capacity pre Nov 2019.

GNE need to address this ASAP! Martijn said on the video "right bus for right route". Fair enough excuses back then for the eventual Sept 2021 and Jul 2022 changes.....but not now when changes could be made to address the Ellison Road bridge issue and allocate the Enviros to work where actually needed!

No wonder GNE's engineering is in trouble if Riverside are needing to throw anything they can find on the X10 (with not enough cover / rotation).....and Consett are having to pull out an E200MMC or StreetLite to cover the X30/X31/X32 or X70/X71/X73 also bearing in mind still not enough 'newer' vehicles to cover the X45!

Only one branded E400MMC on the X10 today, the remainder of the allocation consisting of StreetDeck's (2 Angel's and 1 green Xlines).
RE: North East Combined Authority
(06 Feb 2025, 11:31 pm)Jimmi wrote Only one branded E400MMC on the X10 today, the remainder of the allocation consisting of StreetDeck's (2 Angel's and 1 green Xlines).

The X10 needs rotation. Arriva Northumbria have it spot on at Ashington with the 17 plates and 72 plates. Easy day on the X21/35 and X22. Then a harder day on the X14/X15/X18/X20.

If GNE had all bar 6x (leaving enough to cover X30/X71 at Consett with spares) at Riverside with 6377, would allow them an easy day on the X21 (and a massive upgrade to StreetDecks), followed by a harder day on the X10 and vice versa. Plus three spares to cover a PVR of 12x. That would take some pressure away from engineering.

Yes, would give Consett problems of B5TL & StreetDecks, but at same time less pressure needing to muscle up a low height spare or single deck if low height PVR was significantly reduced, meaning that the X32/X45/X70/X73 could all be covered by full height deckers.