REF0049

Written evidence submitted by Cheshire East Council

1. Bus services in Cheshire East provide essential access between major settlements and connect people to local services including employment, schools and recreation. Cheshire East Council are responsible for the coordination and information provision of the Cheshire East bus network which comprises of commercial and supported services. The Council’s wholly-owned transport company, Transport Service Solutions (TSS), works closely with private bus operators and strives to meet the needs of the passengers by providing a comprehensive network whist operating within budgetary constraints. The use of public transport and the way that people choose to travel, both locally and for longer domestic journeys 2. In recent years bus patronage across the borough has declined progressively and consistently. In 2016/17, there were approximately 4.5 bus passenger journeys per resident with bus patronage declining by 22% since 2009/10. These statistics place Cheshire East within the bottom five Local Authorities for the lowest number of passenger journeys per head (12 passenger journeys per head) and amongst the lowest number of trips per head of resident population in England.

3. Usage of the bus network is characterised by a high proportion of trips undertaken by concessionary pass holders – equating to 49% of all trips in 2016/17, the second highest proportion of concessionary users in the country. To a great extent, we consider that the provision of concessionary travel is fundamental to sustaining the current levels of bus service provision within Cheshire East.

4. Despite a downturn in bus utilisation, the Cheshire East Local Transport Plan 2019-2024 outlines that the council will continue to support socially-necessary bus services where possible (within budgetary constraints); consistently review the supported bus service provision to provide as wider coverage as possible; and, will look to draw closer ties with Bus User Groups (BUGs), including agreeing a memorandum of agreement. Following a comprehensive review of supported local bus services in 2017/18, the Council continues to commit significant resources to supported services, compared with many peer authorities in England & Wales. A key challenge is that as contract become more expensive, our purchasing power is diminished over time and we face on-going challenges of affordability and value-for-money.

5. The outbreak of COVID-19 placed an added strain on a bus network that is already experiencing challenges and a persistent decline in passenger numbers. The pandemic caused residents across Cheshire East to find new ways of working, particularly working from home and inevitably reduced the number of people travelling by public transport. With the current national advice and guidelines on the use of public transport, it will take some time before confidence is restored in the safety of the local network, particularly for the concessionary pass holders who represent 49% of all trips in Cheshire East. The Secretary of State, Grant Shapps revealed that UK bus patronage had fallen by 78% following strict government instructions to stay at home. Across Cheshire East, during the first week of June 2020, total passenger numbers had dropped by 83%, therefore slightly more than the national average. This loss of patronage represented an 84% drop in fare paying passengers and an 81% drop in concessionary passengers, based on a pre-covid weekly estimates. REF0049

6. Public transport operators, the DfT, devolved administrations, and transport authorities are all deliberating how to maintain social distancing on board vehicles as passenger numbers start to climb. A steady return to public transport use has been demonstrated across Cheshire East, with a 126% increase in utilisation between 20/06/2020 and 29/08/2020. However, it is noted that this is still more than 60% below a typical pre-covid week.

7. During this period, on average patronage was observed to be recovering at a rate of 8% per week. Based on this information and assuming continued growth and no further lockdown restrictions, it would take at least an additional 12 weeks to return to pre-covid patronage. However, there can be no certainty of this future which would be completely dependent on the lifting of lockdown restrictions and full recovery in passenger perceptions towards public transport.

Phased Return to Public Transport: 20th June - 29th August

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Central and local governmental transport priorities and finances and funding for transport 8. The decline in bus patronage, as a result of the pandemic, causes the commercial services provided by operators to be less viable, placing further pressure on the Council’s budget for supported (subsidised) services.

9. In light of this, since the outbreak of COVID-19 the UK Government has provided bus companies with rescue funding to aid service viability. In April 2020, the Department for Transport (DfT) announced a Bus Services Support Grant of £167m in addition to a commitment to maintain support funding worth £230m. This was followed up with an additional £254m for the second period from June-July 2020 to be used to increase the frequency and capacity so the UK can start moving back to a full timetable. REF0049

10. As of August 2020, the third round of the Government’s COVID-19 emergency grant was issued, with the bus industry receiving £218.4m of Covid Bus Service Support Grant Restart (CBSSG Restart) over eight weeks. This pays for substantially higher service levels than can be justified by current passenger numbers. The DfT has also revealed that it will continue to provide operators with £27.3m a week until funding is no longer required, with an eight week notice period given before funding ceases. The funding will be paid direct to bus operators, except for a portion that is paid to local transport authorities for tendered services. We welcome the emergency support to sustain the local networks during the pandemic, whilst acknowledging that the long-term over provision of capacity may be unsustainable. However, for the foreseeable future we consider this is essential to retain a coherent network in Cheshire East and begin to restore public confidence in bus travel.

11. The new round of CBSSG Restart will be paid at a rate of £1.14 per live kilometre operated, multiplied by a scaling factor based on patronage (excluding concessionary passengers). The Government says the grant level assumes local authorities continue to pay operators at pre-COVID levels for tendered services, concessionary travel, and home-to-school transport.

12. Cheshire East in consultation with Transport Service Solutions (TSS), agreed that this funding be allocated on the basis of scheduled supported bus kilometres on each service operating during the crisis. This funding was fully utilised in Cheshire East. These payments are made to offset a loss in on- bus revenue therefore have been allocated across all contracts (Minimum Subsidy and Minimum Cost) to compensate for any deficit in on-bus revenues.

13. In addition to the allocation of CBSSG, the authority has continued to pay Local Bus operators Concessionary Fares reimbursement at pre-covid-19 forecast levels and maintain local bus service support funding where the services have been reduced. In the longer term, there is a requirement for more flexible funding. Current funding has fixed deadlines and is focussed on sustaining the existing services. Inevitably, this leads to resolving short term issues rather than investing in long- term improvements. Post pandemic, we would urge funding support to be as flexible as possible to improve innovation and re-modelling of local networks.

14. Cheshire East Council provides financial support to operate socially-necessary bus services throughout the Borough. These services enable residents to benefit from local bus services in places where commercial services do not operate, providing access to essential services including health education, employment, retail and leisure.

15. The Council completed a comprehensive review of its local supported bus network to assess whether these services best meet the needs of residents and represent value-for-money to the Council. The review has assessed how to maximise the effectiveness of the supported bus network in accordance with the medium term financial strategy, which identifies a target saving of £1.576m from the annual supported bus budget commencing 1st April 2018. Following public consultation and consideration of the evidence, a set of adjustments/modifications were recommended to be made to the routes, as consulted, in order to better reflect the needs of residents as identified during the public consultation. More recently, we have joined with Cheshire and Warrington LEP and partners to develop a review of the future Bus Strategy for the sub-region. This will identify how the local public transport offer need to evolve to meet the needs of our 21st century economy. REF0049

The devolution of transport policy-making responsibilities and powers 16. Devolution is important because it means decisions are made closer to the people, communities and businesses they effect. At present, Cheshire East is a unitary authority and is therefore responsible for all local government functions within the area. However, under existing legislation determining rules for greater devolution of transport funding and powers, Cheshire East is constrained by the provisions which limit these powers to elected mayors. A requirement for devolution, is the introduction of a mayor; elected directly by local people in areas covered by combined authorities.

17. The council’s current status creates challenges, particularly when considering opportunities for bus franchising. We would urge Government to give further consideration to how greater local control of public transport can be enabled for non-Metropolitan unitary councils, independently of the obligation to adopt of specific model for council governance i.e. a directly-elected mayor. The resilience of the transport system for future crises 18. Before the pandemic struck, Cheshire East bus industry was facing significant challenges regarding utilisation and the financial viability of a lot of the services in terms of commercial sustainability. During the early stages of the pandemic, the industry demonstrated some resilience as services were able to adapt and maintain at least some level of service relevant to patronage levels before Government help was provided.

19. However, as a result of reduced utilisation, the profitability of running the bus services was a significant challenge and serious questions have been raised whether the resilience is there for operators to withstand falling profitability associated with a crisis alike to COVID-19.

20. A local bus operator in Cheshire East has forecast that bus patronage will be, at best, 80% of pre- covid levels in a years’ time. If correct, bus services may no longer be feasible on a commercial basis.

21. For supported services across the area, the council’s budget is heavily constrained, and the pandemic has incurred an estimated £750,000 exceptional cost pressures to sustain the network. As fare-box income declines, this makes it even more difficult to run existing services. Further compounded should services be deregistered. It is not foreseeable that the council will have sufficient resources to allow wholesale subsidisation of the network in the event of extensive de- registration of commercial service.

22. The Cheshire East Local Transport Plan outlines that bus and rail stations should be well maintained, through the maintenance of seating areas and ensuring that litter bins are emptied regularly. This provides a more pleasant environment for users whilst interchanging and increases the likelihood of use of public transport. The installation and maintenance of lighting and CCTV at bus and rail stations improved people’s perceptions of safety when travelling late at night and also during the winter months. These changes, in addition to a well-maintained interchange and changing facilities enhance users’ safety (both actual and perceived) whilst travelling by bus and rail.

23. In the wake of the COVID-19 pandemic, the need to ensure safe and clean travel is paramount. Consequently, the action to promote well maintained and accessible interchange facilities and bus fleets which feel safe to use day or night is very important. REF0049

24. Safety measures that have been implemented specific to the pandemic include the need for face masks/coverings, social distancing and reduced bus capacities. Cheshire East Council implemented and promoted the following measures:  Passengers must wear a face covering, unless exempt, with refused travel or fines for non- compliance;  Face coverings must be worn in enclosed public spaces including bus stations;  Passengers must keep social distancing while waiting for the bus;  Allow other passengers to exit the bus before attempting to board;  Follow any instructions issued by the bus operator while travelling;  Use contactless payment where possible;  Wash hands or use sanitiser before and after travelling.

25. From 1 July, free concessionary bus travel reverted to only being available after 9.30am but the half- fare concessionary travel before 9.30 will continue. These restrictions had previously been lifted during the lockdown period to enable older and vulnerable residents to access key services. As the new phase of measures, introduced by government, could see an increase in passenger demand at peak times, the council is falling in line with neighbouring authorities to avoid any confusion where travel on cross-boundary services is concerned.

26. Due to the ongoing Covid-19 virus pandemic and Government instructions for people to work from home and self-isolate, some of our local services continue to be reduced or suspended.

27. Based on Government guidance bus services across Cheshire East are currently operating at a reduced capacity to align with social distancing rules and regulations. This could represent a turning point for bus travel within Cheshire East, as a decision must be made regarding whether these measures are continued to ensure passenger safety or a phased return to normal is put in place. We recognise that the national situation remains uncertain and continue to monitor and respond to updated guidelines from Government as well as local feedback from industry and passengers.

28. Options to provide some degree of social distancing, even if they do not fully align with the governments two metre “safe distance” recommendations, have been considered by the bus industry. Should this be implemented, more stringent measures would need to be put in place including sealed off seats and signs indicating where passengers can and can’t sit. This would reduce capacity to around 15%. A significantly reduced capacity, as low as 15%, would raise serious questions regarding the viability for services and could initiate the de-registration of services across Cheshire East, particularly for rural services where bus utilisation already falls below national and regional averages. Social distancing arrangements will also add to the operating and maintenance costs of an industry with already tight purse strings, as more buses and drivers are required to meet demand. Further threatening the viability of the bus industry in Cheshire East. The decarbonisation of transport and the capability to meet net zero carbon emissions targets by 2050 29. As the predominant mode of public transport, Cheshire East realises that buses must be central to delivering the Council’s ambitions decarbonisation plans. The Council aims to be carbon neutral by 2025 for its own operations. A double decker bus can take 75 cars off the road. Even small changes in travel behaviour can make a big difference. If everyone switched just one car journey a month to bus it would mean one billion fewer car journeys on our roads and a saving of two million tonnes of CO2 every year. REF0049

30. This impact is indicative of relatively high car ownership in Cheshire East with 40% of households having two or more cars against a UK average of 29%. Greater use of sustainable transport will help improve air quality and contribute to the decarbonisation of the borough. This means making adequate provision for a range of sustainable transport opportunities to enable travel on foot, by cycle or by public transport wherever possible, thereby reducing reliance on private cars – especially single-occupancy cars.

31. The Cheshire East Carbon Neutral Action Plan formulates a plan of actions for the council to work towards carbon neutrality by 2025. An action pertinent to the bus industry is to reduce borough- wide emissions by encouraging the use of carbon neutral public transport. The plan has a target that by 2025 88% of buses are Electric Vehicles (EV), Plug-In Hybrid Electric Vehicles (PHEV) or Fuel Cell Vehicles (FCV). Cheshire East plans to achieve this target by implementing the following initial measures. 1. Bus Fleet Switch to EV 2. Optimise total bus journey mileage by strategically assessing routes and maximising service efficiency.

32. Switching the bus fleet to EV has an estimated point cost of £500k per electric bus and would be implemented by engaging with private service providers to match-fund or apply for national government/EU funding. A review of buses close to retirement would be recommended to identify those first up for replacement. It is understood that the average lifetime for a bus is 8 years, so by 2030 almost the entire fleet could be eligible for replacement.

33. The benefits associated with an EV bus fleet include: EV buses are cheaper than their diesel equivalent by about 7%; if all buses were zero emissions an emissions saving of 6.4 ktCO2e per annum would be generated (based on bus mileage data from DfT for Cheshire East and typical carbon footprint per unit distance of travel); and, an EV fleet would improve air quality and reduce investment in stranded assets.

34. There is evidence that an electric fleet can operate successfully. For example, First Bus now operate 741 electrified ancillary buses across the UK. These vehicles are in excess of 30% more fuel efficient than the buses being replaced and have succeeded across a variety of route types including hilly routes in Sheffield and Bristol.

35. The optimisation of the existing bus network would involve the review of routes and the efficiency of existing services and would be conducted within existing council resources. This approach involves a survey of bus patronage and service popularity to define which services are redundant and where bus routes can be made more efficient. The Cheshire East Carbon Neutral Action Plan outlines that this may mean extending some services or adjusting routes to encourage more people to take the bus.

36. The benefits of optimising the existing bus network and services will directly reduce emissions (in the case of diesel buses) or reduce electricity demand/consumption (in the case of electric buses). A 10% reduction in bus mileage due to efficiency savings is a saving of 0.6 ktCO2 per annum.

37. However, current schemes to help meet zero emissions do not favour marginal operation, any funding such as the Green Bus fund only provide top up funding for the difference between new REF0049

vehicle and carbon neutral vehicles, there are very few if any services in Cheshire East which support the provision of new vehicles, so these funds are not an option. The requirement to become carbon neutral will undoubtably lead to some marginal services becoming unviable.

38. Cheshire East also have ambitious plans to reinvigorate the bus industry. For example, the development of Bus Rapid Transport (BRT) provides an opportunity to extend the provision of commercial services. BRT is under consideration for cross boundary travel to/from the Greater Manchester conurbation. Routes noted in the SEMMM Strategy for future consideration broadly include: . Stockport – Hazel Grove – Woodford – Handforth – Stanley Green – Heald Green – Manchester Airport. . Wilmslow – Handforth – Stanley Green – Heald Green – Manchester Airport. . Wilmslow – Handforth – Stanley Green – East Didsbury Metrolink stop.

32. This is intended to improve cross-boundary connections between Greater Manchester and key hubs within Cheshire East, with the ambition to extend the services across the wider Borough in the future where feasible.

33. Similarly, the arrival of HS2 in Cheshire East at stations in Crewe and Macclesfield, and the development opportunities this brings, presents an opportunity to strengthen the commercial bus network in these areas as part of an integrated transport network. Infrastructure to support this network would consist of dedicated bus lanes and/or guided tracks where possible, with frequent services and off-board fare collection. These schemes are designed to provide a direct and reliable mode of transport that can compete with the private car. Government guidance has negatively impacted the perception of public transport; as such, any plans of decarbonisation by reducing use of the private car must first overcome the negative connotations associated with public transport and COVID-19.

34. To instigate change, funding and investment will be necessary to provide schemes such as BRT and HS2 connectivity. These schemes come at a high cost and would not be seen as viable until bus revenue can be forecast with greater certainty. COVID-19 has significantly impacted on-board revenue and the current bus industry is heavily reliant on Government funding to maintain commercial viability. To get these forward-thinking schemes implemented, additional funding may be required from UK Government to provide support for new infrastructure alongside the current funding of existing services.

35. Cheshire East Council and Storengy have joined forces and secured funding towards a £1m scheme which will see bin wagons converted to take home-produced hydrogen. The scheme comprised of both public and private sector money – with a £345,000 contribution from the local enterprise partnership’s Local Growth Fund – will see the first green hydrogen fuelling facility in the North West of England, bringing carbon and air quality benefits to Cheshire East.

36. Installed at the Council’s depot in Middlewich, it will produce hydrogen in the greenest way possible – using an electrolyser connected to solar panels and grey-water recycling. This will provide safe, clean hydrogen fuel, which will be pumped into dual-fuel bin wagons.

37. This scheme is an exciting step towards the council becoming carbon neutral by 2025. Through our environmental strategy, we intend to lead the way in green initiatives like this. Building a cleaner, REF0049

greener economy will not only reduce carbon but also create jobs across the borough through new and innovative technologies, such as hydrogen. Hydrogen is ideal as an alternative to diesel for our refuse vehicles. There are opportunities to extend the scope of hydrogen use to develop a cleaner, modern approach to bus provision in the Borough. Innovation and technological reform within transport 38. Technology and innovation are becoming more prominent in terms of the role they play in the transport network, and this is likely to increase. Technology enables the facilities that are required in order to develop, expand and link different modes of transport, for example dealing effectively with the complex arrangements for information and pricing structures for seamless organisation of the bus network. It is important that methods adopted are consistent with changing lifestyles and predictions around the future uses of technology that will be used to purchase tickets.

39. The pandemic has brought the need for innovation and technological reform to the fore as a means of attracting new users and initiating a culture shift. The use of technology, such as accurate real- time travel updates, enhances the perception of service reliability and efficiency could re-establish bus travel as a competitive mode.

40. Cheshire East’s Local Transport Plan identifies new ways of ticketing and providing real time travel information as a means to update the current fleet and improve the perception of bus travel. In a post-covid environment, the delivery of such advances could prove vital in ensuring that bus travel remains a safe, viable and attractive transport alternative, but these cannot be achieved without sufficient government funding.

41. Transport for the North (TfN) have been working in partnership with operators and transport authorities to deliver an integrated ticketing scheme that will make it easier for passengers to travel seamlessly using a payment method of their choice. As outlined in the TfN Strategic Transport Plan (STP), the “Integrated and Smart Travel” programme will aim to support and encourage those journeys undertaken via multiple transport modes. The ticketing system will allow passengers to be confident that they have paid the cheapest possible fare; with the aim of encouraging new passengers to travel by public transport thus bringing benefits to the operation of the road network and the environment, TfN are implementing this through a phased approach. It is vital that this approach is comprehensive across all partner authorities. At present, there is considerable risk of a “digital divide” in the roll-out of smart ticketing which disadvantages the more rural councils sitting beyond the cities and Combined Authorities.

42. A lack of integration between transport services has been identified as a significant barrier to greater use of bus and rail services, causing significant increases in journey time and discouraging multi- modal travel. Initiatives to overcome this have been shown to have the potential to increase the appeal of travel by public transport and provide an attractive alternative to the private car.

43. The provision of additional information at bus stops/stations and railway stations increases the likelihood of the use of public transport and interchange, as do improved interchange facilities e.g. clear signage, walking routes, information etc. Improved communications such as real-time information (RTI) has also been shown to help ensure that users who have just missed a connection do not wait unnecessarily but are aware of the next service available to them. REF0049

44. However, the reduced level of revenues being achieved by operators and the uncertainty regarding future income levels will undoubtable stifle any innovation or technological reform from the industry. Operators are struggling to survive and are unlikely to be able to fund innovation. Also, any reform of the industry the DfT are proposing should be rolled out as swiftly as possible to remove any uncertainty which will put any innovation on hold.

September 2020