Thursday, 10 March 2022

Lune Valley Contract Costs Revealed: Tendering Excercise Produces No Tenders!

  

      Kirkby Lonsdale Coach Hire will be running all the buses in the Lune Valley from April


Lancashire County Council will be spending £278,000 a year to keep buses running in the Lune Valley following Stagecoach's decision to stop its commercial services from April.

The figure was announced following the completion of a tendering excercise to secure replacement services that actually attracted no tenders, meaning that the Council had to negotiate an agreement with Kirkby Lonsdale Coach Hire.

Stagecoach has operated services 80 (Lancaster - Ingleton) and 81 (Lancaster - Kirkby Lonsdale via Melling) without subsidy since April 2016, when previous support from the council was withdrawn. The comapny received just £9,000 a year from the Council to provide an extra early-evening bus from Lancaster.

Lancashire also pays Kirkby Lonsdale Coach Hire £61,000 a year to operate service 582 between Lancaster and Kirkby Lonsdale via Gressingham and a further £35,000 a year to run Sunday buses on both routes.

It's not clear from the documents in the public domain whether or not the £278,000 replaces the payments currently being made, although the Sunday contract at least was due to continue until October 2023. The council therefore could be looking at additional costs of anywhere between £182,000 and £269,000 a year from April, when the new contracts commence, an increase of between 73% and 156%

No Tenders

It's not clear why no tenders were submitted for the work, although a number of factors may be in play. This part of Lancashire has very few bus operators capable of taking on services of this size and scope, requiring two buses running all day, seven days a week, with extra buses needed at school times. Competition for tenders is therefore limited.

Nor is it the best of times for bus operators to be taking on new commitments. Passenger levels were decimated by Covid and by the government's "Avoid Public Transport" campaign, which was unfortunately very effective. Ridership - and therefore revenue -  has since recovered only to 80% of pre-Covid levels and journeys made by concessionary pass holders, who make up a large proportion of passengers on services such as these, are stuck at 50% because elderly people appear less confident in resuming normal travel patterns.

At the time that tenders were being sought, the government's emergency Bus Service Recovery Grant was due to end in April and its future was uncertain. (It has since been extended to October). Finally, all bus operators are currently suffering from a shortage of driving staff, brought about by a combination of Covid and Brexit and are understandably reluctant to take on new work, particularly work with a contractual commitment to continue.

Fortunately, the Transport Act 1985, which requires councils to seek tenders before awarding subsidies, also allows them to negotiate directly with operators should no tenders be submitted.

North Yorkshire

Stagecoach services 80 and 81 will cease in April

Stagecoach originally gave notice of withdrawal to take effect in January and since then has been running the services under a temporary contract at a cost equivalent to £235,000 per annum. North Yorkshire County Council had been contributing 25% of that cost, meaning that if the temporary arrangements had been made permanent the cost to Lancashire would have been £177,000pa for services 80 and 81, plus of course the existing £96,000 for the 582 and the Sunday service making a total of £273,000 which is in line with the results of the tendering excercise and subsequent negotiation.


The new services, however, benefit from a more evenly-spaced timetable between Lancaster and Hornby and a regular two-hourly timetable up each side of the valley, with some buses continuing, as now, to Settle and Skipton, meaning that the link between Lancaster and Ingleton is maintained. North Yorkshire County Council, however, declined to continue its contribution (it had withdrawn its previous subsidy in 2014), meaning that service 80 will be discontinued.


Some buses will continue to run through to Settle and Skipton

NYCC has made a separate arrangement with Kirkby Lonsdale Coach Hire to provide a limited extension of the route from Lancaster to serve Bentham and Burton-in-Lonsdale from Kirkby Lonsdale, but journey times to and from Lancaster are extended with a lengthy wait for Lancaster-bound passengers at Kirkby Lonsdale.  Wennington and Wray also lose their service to their local shopping centre at Bentham as well as an afternoon workers' journey home from Lancaster on service 80.

Our Involvment

The Bus Users' Group first got involved in services in the Lune Valley in 2016, when the county council withdrew its previous support for the services. At the time, Stagecoach chose to continue to run some of the service without subsidy and we were successful in persuading the council to pay for the extra early evening journey from Lancaster that still runs and which will be included in the new contract.

Evening and Sunday buses and all services via Gressingham and Whittington were withdrawn at that stage and it took until November 2018 for the Bus Users' Group and local campaigners to get buses restored to that side of the valley. The imaginative campaigning by local residents went a long way to achieve this, with at  least two campaigners getting coverage in the national press and on radio and TV

Bus Campainger, Duncan Foster, made the national press and TV with this stunt.

In July 2020, Sunday buses returned to both sides of the Lune Valley when Lancashire increased its budget for bus service support and was also able to take advantage of the government's Better Buses Fund. A contract was awarded to Kirkby Lonsdale Coach Hire, after four operators submitted tenders, at an annual cost of £35,226 (less revenue from fares). Once again, the Bus Users' Group was instrumental in securing this service having pressed the County Council to include it in its "Better Buses Fund" improvements.

The Future

In many ways the new services will be an imprpovement on what was there before, at least in Lancashire, but we are aware that they are not perfect.
Issues include the lack of a workers' bus home from Lancaster to Wennington and Wray and the re-routing of a mid evening bus from Kirkby Lonsdale from the western side of the valley, where it was used by passengers, to the eastern bank.

The County Council has undertaken to review the new services once they have settled in and we will be taking advantage of that review to put forward any ideas for changes at that time.

As also requested by the Bus Users' Group the service numbering has been simplified and the new services will carry the following numbers seven days a week:
81 Lancaster - Hornby - Wray - Melling - Kirkby Lonsdale
82 Lancaster - Hornby - Gressingham - Whittington - Kirkby Lonsdale

The timetables for the new services are on this link.

Monday, 28 February 2022

Fare Rises Confirmed!


 In our post about the new Lakes Guide, we speculated that Stagecoach were planning a fares increase. Little did we know how quickly this would be confirmed!  Ironically, we were congratulating the company on how much advance notice it was able to give passengers of changes to bus services over the summer in the Lakes.  It appears that this has not been possible when it comes to the bad news about fares. Whilst some parties apparently received notice on 23rd February, with the change due to take effect tomorrow, details of the increases only appeared on the Stagecoach website in the last day or two.

Singles and Returns

Under the terms of the Bus Service Recovery Grant, which has been paid by government to compensate bus operators for the loss of revenue during the pandemic, fare increases are restricted to the level of inflation defined by the Consumer Prices Index (CPI). In the twelve months to December 2021 the rise in CPI was 5.5%. It's not clear from the available information online but as Stagecoach last increased its fares in March 2019 its possible that the allowable increase would be based on the increase in CPI since then, which is 7.4%.

The new single and return fares apear to be on average roughly 8% above current levels, although due to rounding and other factors the increases vary from 5% to 12%

Here are some examples:

Lancaster Bus Station to:

Ridge or MarshCurrent: £1.70 single/£2.90 return.NEW £1.90 Single/£3.20 Return

Hala or University:Current: £2.20 single/£3.10 return NEW £2.40 single/£3.40 return

Hest Bank: Current £2.90 Single/£5 return*  NEW  £3.20 single / £5 return*

Morecambe : Current £3.80 single/£5 return* NEW  £4.10 single £5 return*

Heysham Towers:  Current £4.10 single £5 return*  NEW £4.50 single  £5 return*

* Day Rider ticket.

The new single and return fares can be checked by making an enquiry for the journey concerned on the journey planner section of the Stagecoach website, remembering to set the date of travel to on or after 1st March

Daily and Weekly Tickets



The average increase for tickets that give unlimited travel for a day or longer is lower, at about 6% with some prices being held.

Day Tickets

The Bay Area Day Rider price remains at £5, which means that the cost of longer distance return journeys within the area is also unchanged. The Under-19s version of the ticket however, increases from £2.60 to £2.80 (7.7%).  The "Family" version (valid for 5 people, who need not be related and  of whom two may be adults) goes up by 70p to £13

The Bay Plus Day Rider, which covers a wider area encompassing Kirkby Lonsdale, Forton and  Burton-in-Kendal is increaed from £7.10 to £7.50 (5.6%)

Another ticket not increaseing in price is the Lancashire Day Rider  All three versions of this tickets remain at their current prices of £4.80 (Under 19) ; £8.40 (Adult) and £17.50 ("Family") meaning that the cost of day trips to places such as Preston and Blackpool will not increase. As a reader of our Facebook page has pointed out, the price of these tickets is controlled by Stagecoach Merseyside & South Lancs and was increased earlier in the year by a similar amount to the current rises.

For passengers journeying into the Lakes, the North West Explorer ticket rises from £11.50 to £12

Seven Day Tickets
For regular travellers, perhaps commuting to work or college, the seven day tickets offer significant savings over ordinary return fares and will continue to do so following the price rise.
  
The Bay 7 Day Megarider goes up from £15.90 to £17 (6.9%)

The Bay Plus 7 Day Megarider increases from £23 to £24.30 (6.1%)  Passengers who use this ticket to travel to and from Kirkby Lonsdale and the Lune Valley villages will, however, find that the price of a weekly ticket will reduce to £22 (whole route) or £18 (south of Caton Green) when Kirkby Lonsdale Coach Hire take over the service from 4th April.

Longer Period Tickets
Stagecoach currently offers 28-day versions of its mega rider tickets as well as continuous monthly subscription variants.  There is no mention of these in the notice on the website, but if they are not being increased in price they will offer even bigger savings over seven day tickets than they do now.

Student tickets, such as the Unirider, are also not mentioned in the notice.


Commentary - and concerns

It is always disappointing when bus fares have to rise, especially as many passengers are at the lower end of the income range and can ill-afford to pay more. Bus operators are in a difficult position. The Bus Service Recovery Grant is due to finish at the end of March and although there have been hints that it might continue in some form this has not been confirmed.  Passenger levels have still not recovered from the hit they received during the pandemic - and the pandemic itself is by no means over - meaning there is a delicate juggling act between needing to replace lost revenue by putting fares up and encouraging the missing ones to return by keeping them down!

Fares were last increased in March 2019 and in normal times would have gone up twice since then, not including the current increase. At an average annual increase of 8% (which would have been on the low side) a £2.20 fare would, after the latest increase and after "rounding up" would have become £2.80, rather than the £2.40 being charged from 1st March.

What is concerning, however, is that the present increase may be constrained either by the restrictions placed on bus companies in receipt of funding, or by the need to retain and increase passenger numbers.  Once the restrictions are fully lifted and once sufficient passengers have returned, there may well be more rises planned, which is perhaps why the glossy and very professional "The Lakes by Bus" Guide contains details of ticket prices only accessible via a QR code, leading to an easily-updated web page!