The West Midlands Combined Authority (WMCA) has completed a £24 million deal to acquire 94 per cent of the region's bus network from National Express West Midlands, a move Prime Minister Andy Burnham has called "absolutely massive." The acquisition, announced on Tuesday, August 18, secures hundreds of daily journeys and protects thousands of jobs across the region.
Government backs public ownership of buses
The Government supported West Midlands Mayor Richard Parker and the WMCA in the buyout, which brings the bus operations into public ownership. Mr Burnham said the move protects both services and jobs and gives people more say over the network. In a social media clip, he stated: "More local buses are coming under public control. In the West Midlands, bus services in private hands were at risk of being lost so we've backed the Mayor Richard Parker to take bold action to save them by bringing them immediately into public ownership."
He added: "This is absolutely massive. Government and local leaders have joined forces to keep vital bus services running for millions of people across the West Midlands, protecting thousands of jobs and empowering local decision making to deliver better, more affordable and more reliable bus services. This is the first major milestone in our drive to giving communities more control over their own services. That's exactly what Number 10 North was created to deliver."
Deal details and company rationale
Mobico Group, the parent company of National Express West Midlands, confirmed it was de-risking its operations and had reached an agreement in principle. The transaction values the assets at approximately £102 million, broadly in line with book value, with expected upfront residual proceeds of around £24 million after deductions for transferred liabilities.
Transport Secretary Heidi Alexander also welcomed the move on Twitter, saying: "We're stepping in with Richard Parker to protect 750 buses per day running for millions of people across the West Midlands, securing thousands of jobs while the bus network transitions back to public control."
Mayor pledges franchise overhaul
Mr Parker said he would continue to push ahead with franchising the entire network, a move he said would give the public more control over fares, timetables and services. When the acquisition was announced, he said: "I wasn't prepared to stand by and watch hundreds of buses disappear from our roads because a private company decided to walk away. People rely on these buses to get to work, to school or to hospital appointments. They are a public service and I believe they should be run in the public interest."
He added: "So we stepped in. We protected the services people depend on, protected jobs and kept the West Midlands moving. For too long, decisions about our buses have been driven by what works commercially, rather than what passengers and communities need. That is what has to change, and I am changing it."
The acquisition marks a significant shift in the region's transport policy, with the WMCA now set to oversee the transition of the bus network to full public control. The move is expected to affect millions of passengers who rely on the 750 daily buses, with further details on franchising expected in the coming months.
