Public Document Pack

GREATER MANCHESTER COMBINED AUTHORITY

DATE: Monday, 7th October, 2019 TIME: 12.00 pm VENUE: Boardroom, GMCA Offices, Churchgate House, 56 Street, Manchester, M1 6EU

AGENDA

1. APOLOGIES

2. CHAIR'S ANNOUNCEMENTS AND URGENT BUSINESS

3. DECLARATIONS OF INTEREST

To receive declarations of interest in any item for discussion at the meeting. A blank form for declaring interests has been circulated with the agenda; please ensure that this is returned to the Governance & Scrutiny Officer at the start of the meeting.

4. BUS REFORM - AUDIT AND CONSULTATION

Report of Eamonn Boylan, Chief Executive Officer, GMCA & TfGM.

For copies of papers and further information regarding this meeting please refer to the website www.greatermanchester-ca.gov.uk. Alternatively, contact the following Governance & Scrutiny Officer: Sylvia Welsh 0161 778 7009 [email protected]

This agenda was issued on 27 September 2019 on behalf of Julie Connor, Secretary to the Greater Manchester Combined Authority, Churchgate House, 56 Oxford Street, Manchester M1 6EU

Membership 2019/20

District Member Substitute Member

Bolton David Greenhalgh (Con) Martyn Cox Con)

Bury David Taylor (Lab) Andrea Simpson (Lab)

Manchester Richard Leese (Lab) Sue Murphy (Lab)

Oldham Sean Fielding (Lab) Arooj Shah (Lab)

Rochdale Allen Brett (Lab) Sara Rowbotham (Lab)

Salford Paul Dennett (Lab) John Merry (Lab)

Stockport Elise Wilson (Lab) Tom McGee (Lab)

Tameside Brenda Warrington (Lab) Bill FairFoull (Lab)

Trafford Andrew Western (Lab) Catherine Hynes (Lab)

Wigan David Molyneux (Lab) Keith Cunliffe (Lab)

GMCA Meeting on 7 October 2019

Declaration of Councillors’ interests in items appearing on the agenda

NAME: ______

Nature of Interest Type of Interest

Personal / Prejudicial /

Disclosable Pecuniary Personal / Prejudicial /

Page 1 Page Disclosable Pecuniary Personal / Prejudicial /

Disclosable Pecuniary Personal / Prejudicial /

Disclosable Pecuniary Agenda Item 3

PLEASE NOTE SHOULD YOU HAVE A PERSONAL INTEREST THAT IS PREJUDICIAL IN AN ITEM ON THE AGENDA, YOU SHOULD LEAVE THE ROOM FOR THE DURATION OF THE DISCUSSION & THE VOTING THEREON.

1 QUICK GUIDE TO DECLARING INTERESTS AT GMCA MEETINGS This is a summary of the rules around declaring interests at meetings. It does not replace the Member’s Code of Conduct, the full description can be found in the GMCA’s constitution Part 7A. Your personal interests must be registered on the GMCA’s Annual Register within 28 days of your appointment onto a GMCA committee and any changes to these interests must notified within 28 days. Personal interests that should be on the register include:  Bodies to which you have been appointed by the GMCA

 Your membership of bodies exercising functions of a public nature, including charities, societies, political parties or trade unions. You are also legally bound to disclose the following information called DISCLOSABLE PERSONAL INTERESTS which includes:  You, and your partner’s business interests (eg employment, trade, profession, contracts, or any company with which you are associated)  You and your partner’s wider financial interests (eg trust funds, investments, and assets including land and property).  Any sponsorship you receive. Page 2 Page FAILURE TO DISCLOSE THIS INFORMATION IS A CRIMINAL OFFENCE

STEP ONE: ESTABLISH WHETHER YOU HAVE AN INTEREST IN THE BUSINESS OF THE AGENDA If the answer to that question is ‘No’ – then that is the end of the matter. If the answer is ‘Yes’ or Very Likely’ then you must go on to consider if that personal interest can be construed as being a prejudicial interest. STEP TWO: DETERMINING IF YOUR INTEREST PREJUDICIAL?

A personal interest becomes a prejudicial interest:  where the well being, or financial position of you, your partner, members of your family, or people with whom you have a close association (people who are more than just an acquaintance) are likely to be affected by the business of the meeting more than it would affect most people in the area.

 the interest is one which a member of the public with knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice your judgement of the public interest.

2 FOR A NON PREJUDICIAL INTEREST FOR PREJUDICIAL INTERESTS YOU MUST YOU MUST  Notify the governance officer  Notify the governance officer for the meeting as soon as you realise you have a prejudicial interest (before or during for the meeting as soon as you the meeting) realise you have an interest  Inform the meeting that you have a prejudicial interest and the nature of the interest  Inform the meeting that you  Fill in the declarations of interest form have a personal interest and the nature of the interest  Leave the meeting while that item of business is discussed

 Fill in the declarations of  Make sure the interest is recorded on your annual register of interests form if it relates to you or your partner’s interest form business or financial affairs. If it is not on the Register update it within 28 days of the interest becoming apparent. TO NOTE: YOU MUST NOT:  You may remain in the room  participate in any discussion of the business at the meeting, or if you become aware of your disclosable pecuniary Page 3 Page and speak and vote on the interest during the meeting participate further in any discussion of the business, matter  participate in any vote or further vote taken on the matter at the meeting  If your interest relates to a body to which the GMCA has appointed you to you only have to inform the meeting of that interest if you speak on the matter.

3

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4 Agenda Item 4

Date: 07 October 2019

Subject: Bus Reform : Audit & Consultation

Repor Report of: Eamonn Boylan, Chief Executive Officer, GMCA & TfGM

PURPOSE OF REPORT

This report sets out and explains the recommendation to the GMCA to approve proceeding to the next stage in the consideration of a proposed franchising scheme, following on from the work undertaken in connection with bus reform. The proposed recommendations and associated next steps in accordance with the Transport Act 2000 (as amended by Bus Services Act 2017) (“the Act”) are also set out in this report.

RECOMMENDATIONS:

Members are requested to:

i. Note the contents of this report; ii. Note the contents of the report from the independent auditor dated 26th September which was prepared in accordance with section 123D of the Act; iii. Note that the independent auditor’s report is an opinion on the assessment of a proposed franchising scheme previously reviewed by Members in June 2019; iv. Approve the publication of the independent auditor’s report and the assessment supplied to the independent auditor; v. Note that minor typographical amendments will be attached to the assessment; vi. Approve the amended Proposed Franchising Scheme as set out in Appendix 1.2; vii. Approve the preferred funding scenario for the proposed franchising scheme; viii. Note mitigating responses to a downside risk scenario as set out in Section 6;

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ix. Agree to proceed with the proposed franchising scheme by undertaking a consultation in accordance with section 123E of the Act, which would commence on 14 October 2019 and end on 8 January 2020, and to agree the funding for the consultation as set out in paragraph 6.16 of this report; x. Approve the publication of a notice of the proposed scheme in accordance with section 123E(2)(d) of the Act; xi. Instruct TfGM to carry out all tasks necessary to carry out that consultation on its behalf; and xii. Note that a further report will be made to the GMCA on the outcome of the consultation.

CONTACT OFFICERS:

Eamonn Boylan Chief Executive, TfGM and GMCA 07875 990000

Treasurer - Greater Manchester Combined Richard Paver 0161 778 7004 Authority

Liz Treacy GMCA Solicitor and Monitoring Officer 7951 50

Appendices

1. Draft Proposed Franchising Scheme i June 2019 ii as amended September 2019 2. Report of Independent Auditor 3. Observations of Independent Auditor 4. Response to observations of Independent Auditor 5. Draft Equality Impact Assessment on the proposed scheme 6. Notice of Proposed Franchising Scheme

BACKGROUND PAPERS: o Report of the GMCA titled Bus Services Act 2017, dated 30 June 2017 o Report of the GMCA titled Bus Reform Objectives Update, dated 25 May 2018 o Report of the GMCA titled Bus Reform, dated 27 July 2018 o Report of the GMCA titled Transport Revenue Budget 2019/20, dated 15 February 2019 o Part A Report of the GMCA titled Bus Reform Update, dated 28 June 2019

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1 INTRODUCTION

1.1 On the 30 June 2017, the GMCA decided to use the new powers set out in the Act to prepare an assessment of a proposed franchising scheme.

1.2 On 28 June 2019 and upon completion of the assessment, the GMCA decided to proceed to the next stage in the development of the proposed scheme by agreeing to instruct an independent auditor to prepare a report in accordance with section 123D of the Act.

1.3 Following the completion of this process and upon receipt of the auditor’s report, this report sets out the outcome of the auditor’s report and recommends proceeding with the proposed scheme by undertaking a consultation in accordance with section 123E of the Act.

2. BACKGROUND

2.1 Members will recall the work undertaken by TfGM to prepare an assessment of a proposed franchising scheme and how the GMCA’s Vision for Bus, as set out in the Greater Manchester Transport Strategy 2040, has been considered and applied in the assessment.

2.2 The draft franchising scheme is attached at Appendix 1. Appendix 1.1 attaches the Scheme provided to the Auditor in June following the CA decision; Appendix 1.2 is an updated version identifying various minor amendments which will be included in the consultation documents. In brief the proposed franchising scheme would apply throughout the entirety of Greater Manchester (“GM”) and identifies those local services the GMCA would provide under local service contracts, which private operators would then bid to operate on the GMCA’s behalf. The proposed scheme also excludes some services from being franchised. Such excluded services could operate in GM and any services not franchised or excluded would require a service permit to run in GM. For the purposes of efficiently and effectively transitioning from the existing market to the proposed scheme, the proposal is that GM would be split into three areas and the proposed scheme makes provision for services to operate between those areas whilst franchising is rolled-out across GM.

2.3 The Act and The Bus Services Act 2017: Franchising Scheme Guidance (“the Guidance”) set out several procedural steps that must be undertaken by the GMCA before a decision can be made to introduce a franchising scheme. This includes, but is not limited to, having an independent audit organisation prepare a report on the assessment and undertaking a consultation on the proposed franchising scheme.

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2.4 Further information on these steps, including the outcome of the auditor’s report and the proposed approach to undertaking the recommended consultation, is set out below.

3. THE ASSESSMENT

3.1 On 28 June 2019 a completed version of the assessment was shared with members in a Part B Report so that a decision to proceed to audit could be taken. At that time, the GMCA also delegated authority to TfGM to carry out final minor amendments to the assessment and a small number of such typographical amendments have been made and were also passed to the auditor. This ensured that the version of the assessment that was shared with the auditor was as accurate and up to date as possible; and was without any minor errors or omissions.

4. THE AUDIT

4.1 The Act and Guidance prescribe which matters an authority must consider when selecting a person to act as its auditor in accordance with the Act. In summary, these include:

 the auditor must be a person or body with a recognised professional accountancy qualification offered by a qualifying body;

 the auditor needs to be a qualified accountant with no conflicts of interest that would lead to difficulties in acting as the authority’s auditor;

 the auditor should act with independence and ensure that the authority is in the best position to take a well-formed decision in the interests of passengers; and

 the auditor must not have been engaged by the authority to assist with any aspect of the preparation of the assessment or proposed franchising scheme. This is to ensure that the preparation of the assessment and the audit are kept separate.

4.2 On 27 July 2018 the GMCA instructed TfGM to secure the conditional availability and preliminary briefing of a suitably qualified independent audit organisation so that after having prepared the assessment, the auditor may then be instructed to prepare the report described above. This led to a competitive procurement process being undertaken by TfGM to secure the conditional availability of an auditor who satisfied the criteria set out in paragraph 4.1 above.

4.3 Section 123D of the Act requires an authority to obtain a report from an independent audit organisation on its assessment. On 1 July 2019, TfGM instructed an independent auditor to prepare a report.

4.4 The auditor’s report must state whether, in the auditor’s opinion:

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 the information relied on in considering whether the GMCA would be able to afford to make and operate the scheme, and in considering whether the proposed scheme would represent value for money, is of sufficient quality;

 the analysis of that information in the assessment is of sufficient quality; and

 the GMCA had due regard to the guidance issued under section 123B of the Act in preparing the assessment.

4.5 When forming its opinion on the first two matters listed above, the Guidance makes it clear that the auditor should consider the quality and timeliness of any information received from bus operators and the following criteria:

 whether the information comes from recognised sources;

 whether the information used is comprehensive or selectively supports the arguments in favour, or against, any option;

 whether the information used is relevant and up to date;

 whether the assumptions recorded as part of the assessment are supported by recognised sources; and

 the mathematical and modelling accuracy of the analytical methods used to calculate the impacts of the options.

4.6 As such, the auditor is not required to report on or pass judgment on the decision taken or the outcomes of the assessment. Whilst the Act does refer to this report as an “audit”, the Guidance instead refers to it as an “assurance report” reflecting the difference between this report and what is commonly understood to be included in a traditional financial audit.

4.7 Initially the assessment (and all its supporting data) were provided to the auditor. Following this, various meetings and briefings took place between TfGM, the GMCA and the auditor to discuss and provide an overview of each of the cases of the assessment (as well as the appropriate supporting papers, technical notes and models). The auditor then reviewed the assessment and its supporting papers. During this review, the auditor asked several clarification questions, which TfGM and GMCA responded to as appropriate on a case by case basis. These responses primarily consisted of further explanations being given. In some instances, further information (such as technical notes, meeting papers and minutes) were provided to the auditor.

4.8 In order to prepare a report in compliance with the requirements of both the Act and the Guidance, the auditor’s work was structured around various areas and topics, which included the following:

 Process review: this included consideration of the process followed by TfGM in developing the assessment and consideration of how the objectives, the ‘case for change’, the proposed franchising scheme and the other options were developed.

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 Assessment review: this included a review of each of the cases of the assessment (i.e. the Strategic, Economic, Commercial, Financial and Management Cases).

 Information review: this included reviewing the information used and/or considered by TfGM in preparing the assessment, including that from bus operators, and whether those sources of information complied with the requirements of the Guidance, as summarised above at paragraph 4.5.

 Model review: this included reviewing the models used in the assessment to determine the quality of the analysis underpinning those models.

4.9 The auditor’s report was completed and sent to TfGM on 26th September 2019. A copy of the auditor’s report is attached to this report at Appendix 2.

4.10 In considering the contents of the audit report, members will note that the auditor has provided an informative summary of the work performed, as well as their opinion that:

 the information relied on by TfGM in considering whether the GMCA would be able to afford to make and operate the scheme, and in considering whether the proposed scheme would represent value for money, was of sufficient quality;

 the analysis of that information in the assessment was of sufficient quality; and

 the GMCA had due regard to the guidance issued under section 123B of the Act in preparing the assessment.

4.11 In addition to the auditors unqualified opinion they have provided TfGM with a number of observations. These are set out in Appendix 3 and are addressed by way an Audit Observation Response in Appendix 4 attached.

5. SUMMARY OF THE FINANCIAL CASE AND AFFORDABILITY

5.1 The financial case for the assessment includes detail on how the GMCA could afford to make and operate the proposed scheme. The assessment sets out a range of credible funding sources which, in aggregate, exceed the modelled net costs to implement the proposed scheme over the proposed transition period.

5.2 Based on the information contained in the assessment, members agreed in June 2019 that the proposed scheme (including, in particular, the transition costs required for the proposed franchising scheme) was affordable on the basis of the range of credible funding sources and would represent value for money.

5.3 Since the assessment was completed the Government has indicated that it will support Greater Manchester to ‘deliver a London style bus system in the area’ which could include revenue funding. If Government funding does become available this could offset any local contribution including council tax/precept requirement.

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5.4 It is proposed that a preferred funding scenario, reflecting the application of a set of specific funding sources from within the range of credible sources identified in the assessment, and as set out below in paragraph 5.6 will be outlined for consultation purposes. This will allow consultees to consider the same and provide their feedback as part of their consultation response.

5.5 As set out in the financial case of the assessment, the forecast net costs over the transition period up to 2024/25 are approximately £134.5 million (which includes approximately £12.5 million of forecast cost escalation in current budgets over the period relating primarily to concessions and supported services).

5.6 The preferred funding scenario to fund the transitional costs of the proposed franchising scheme is:

i) £78.0 million, in total, of Mayoral ‘earn back’ funds provided by central government as part of Greater Manchester’s Devolution Agreement. It should be noted that in terms of this funding including ‘earn-back’ for this purpose would mean that it would not be available for other (as yet unidentified) projects. However, the funding was originally provided for projects that are now complete or substantially complete;

ii) £11.0 million, in total, raised by the existing precept as part of the Mayor’s 2019/20 budget for bus reform purposes (equating to £2.2 million per annum applied each year from 2020/21);

iii) £17.8 million, in total, of contributions by Local Authorities as a proposed one- off increase in the statutory contribution in 2020/21;

iv) £5 million, in total, of existing and forecast business rates pooling receipts held by the GMCA; and

v) £22.7 million, in total, of Mayoral precept required from future years’ budgets.

5.7 An indicative profile for these funds is shown in Table 1 below which reflects progressive requirements of a precept per Band D property up to approximately £18.20 in total, phased over a four-year period commencing in 2021/22. GMCA would need to consider whether this was additional funding or to be met from savings elsewhere in the budget. Whilst the precept is expressed per Band D property, approximately 82% of properties in Greater Manchester are below Band D and would pay less than the sums set out above.

5.8 A summary of the forecast profile of cash outflows and the profiled funding sources is shown in Table 1 below.

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Table 1

FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 TOTAL Uses £ms £ms £ms £ms £ms £ms £ms Revenue cashflow (2.9) (15.0) (21.3) (25.0) (18.2) (9.9) (92.3) Capital cashflow (0.7) (8.0) (14.8) (7.7) (10.8) (0.2) (42.2) Total cashflow spend (3.6) (23.0) (36.1) (32.7) (29.0) (10.1) (134.5)

Funding Requirement (3.6) (23.0) (21.3) (28.0) (33.5) (25.1) (134.5)

Funding Local Authority contribution - statutory charge - 17.8 - - - - 17.8 Business rates pooling receipts 2.5 2.5 - - - - 5.0 Existing 2019/20 precept for bus reform - 2.2 2.2 2.2 2.2 2.2 11.0 Future years' precept - - 2.6 2.6 6.3 11.2 22.7 Earn back 1.1 0.5 16.5 23.2 25.0 11.7 78.0 Total sources 3.6 23.0 21.3 28.0 33.5 25.1 134.5

5.9 Any differences between the cashflow spend profile and the funding requirement would be balanced through prudential borrowing for capital spending and the phasing of associated Minimum Revenue Provision.

5.10 The preferred funding scenario reflects sources that can be locally prioritised, however the Assessment also recognises that opportunities will be sought to secure additional Government funding for bus services on an ongoing basis.

5.11 The mix of Local Authority contributions and precept in the preferred funding scenario balances providing one off funding during transition and an ongoing level of precept after the transition period.

5.12 After the transition period the Assessment notes there is a mixture of forecast annual deficits and surpluses in the central scenario and the proposed precept required during transition for this purpose would provide an ongoing source of revenue funding to manage any annual deficits and provide a level of base funding for forecast future escalation in bus services budgets. As such it is proposed that the £17.8m additional contribution to transport by Local Authorities gives a proportionate and acceptable balance of contributions.

5.13 Members are requested to approve the preferred funding scenario for the purposes of consulting on the proposed franchising scheme.

6. SUMMARY OF DOWNSIDE RISKS AND MITIGATING ACTIONS

6.1 The assessment sets out the risks to GMCA of the proposed franchising scheme in particular that it takes on the risk that income, particularly farebox revenue, is sufficient to pay for franchised services (Strategic Case Section 8.4; Commercial Case

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Section 24; Financial Case Section 42.1 and 42.4.7). The financial forecasts include a quantified allowance for specific risks that accompany the Franchising Scheme (Section 42.4), and there are sensitivities presented in the Economic and Financial cases showing how the forecast outcomes would be different if key assumptions and trends varied – for instance ‘exogenous’ assumptions in Greater Manchester population forecasts or car ownership forecasts and franchising ‘scheme specific’ assumptions such as the assumed profit margin required by franchised operators (Sections 15.5 and 42.7).

6.2 Variations in some of the long-term trends tested in the Financial Case sensitivities could have significant effects on the bus network over the period to 2051 and, as noted, some of these factors are ‘exogenous’ whereby the GMCA would have limited influence or control of these trends.

6.3 TfGM explains the mitigations available to the GMCA in the assessment’s conclusion at sections 64.1.5 – 64.1.7, in the event that a ‘downside’ scenario materialised.

6.4 The mitigating responses would be both operational – through reducing the size of the network and / or increasing fares – and financial by allocating more funding to support services. Therefore a ‘downside’ scenario would necessitate prioritisation decisions to be made by GMCA and/ or the Mayor, in line with its public accountability and control of key policy decisions under the proposed franchising scheme, around the level of services, fares and funding in order to achieve a balanced budget. Whilst the financial pressures on the bus market would be likely to be similar in different market scenarios, if the Franchising Scheme were not implemented, these risks and decisions would to a large extent remain with current operators.

7. CONSULTATION ON PROPOSED SCHEME

7.1 Should the GMCA wish to proceed with the proposed franchising scheme then it would be required to undertake a consultation in accordance with section 123E of the Act,

7.2 Section 123E(2) of the Act states that if undertaking a consultation, the GMCA should:

 publish a consultation document relating to the proposed scheme;

 publish the assessment of the proposed scheme dated June 2019;

 publish the auditor’s report on that assessment; and

 give notice of the proposed scheme in such manner as the GMCA considers appropriate for bringing it to the attention of the persons in the area to which it relates.

7.3 In addition to the above GMCA will publish the auditor’s observations and its responses.

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7.4 The purpose of the consultation is to allow consultees to provide their views on whether the proposed franchising scheme should be made, with or without modification.

7.5 On 27 July 2018 the GMCA also instructed TfGM, ahead of completion of the audit, to take all appropriate steps to prepare the materials necessary to allow the GMCA to undertake the consultation process under section 123E of the Act, so that as soon as reasonably possible after obtaining the auditor’s report, the GMCA may (amongst other matters) determine whether to proceed to consultation. These materials, in particular, the required consultation document and notice, have been prepared and will be published by the GMCA in undertaking the consultation.

7.6 The Act sets out the requirements of the consultation document. To summarise this includes, but is not limited to:

 a description of the area to which the proposed scheme relates;

 a description of the local services that are proposed to be provided under local service contracts (i.e. franchised) and a description of the local services which are proposed to be excluded from the scheme;

 the date on which the scheme is proposed to be made and the date or dates by which it is proposed that local service contracts (i.e. franchise contracts) may first be entered into;

 the date by which responses to the consultation must be received; and

 a summary of the assessment.

7.7 This means that a description of the proposed scheme will be included as part of the consultation document and will guide consultees through the contents of the proposed scheme. This will be accompanied by a copy of the proposed scheme itself.

7.8 A summary of the assessment will also be published which gives consultees an overview of each section of the assessment, including each of the five cases and the conclusion.

7.9 A draft equality impact assessment on the proposed scheme will also be published as part of the consultation and is attached to this report at Appendix 5. Subject to the responses received, the EIA will continue to be reviewed throughout the development of the proposed scheme and may therefore be updated post consultation as may be appropriate.

7.10 In addition to the above, section 123E(3) states what must be included when giving notice of the proposed scheme for consultation purposes. This includes having to:

 describe the proposed scheme; and

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 state where copies of the proposed scheme and other consultation materials may be inspected.

7.11 A copy of the notice of the proposed scheme is attached to this report at Appendix 6 and members are asked to agree to publish this notice for consultation purposes. If approved, this notice will be published on the GMCA’s website and in the Manchester Evening News on the day of the consultation launch.

7.12 In terms of persons who must be consulted, section 123E(4) of the Act lists various categories of persons (who together are known as “statutory consultees”). These are:

 all bus operators running local services in Greater Manchester;

 all other persons holding a PSV operator’s licence or community bus permit who would be affected by the proposed scheme;

 such persons who appear to represent employees of bus operators running local services in Greater Manchester;

 such organisations appearing to represent bus passengers;

 any other relevant local authority whose area would be affected by the proposed scheme;

 a traffic commissioner;

 The Chief Constable of Greater Manchester Police;

 The Passengers’ Council (which changed its name in 2014 to Transport Focus); and

 The Competition and Markets Authority.

7.13 In addition to the above statutory consultees, the Guidance states an authority should “consult widely on their proposals” so as to “ensure that local passengers, businesses and transport providers are able to comment on the proposals…”. The Guidance also states that an authority “should aim to make their consultation materials as accessible as possible to all interested parties and ensure that local passengers in particular are aware of, and able to input to, proposals relating to their local bus services”.

7.14 It is therefore proposed to consult both passengers and non-passengers, to ensure that the general public will have the opportunity to review and comment on the proposals.

7.15 Subject to the recommendations sought in this report, the proposal is that the consultation will commence on 14th October 2019 and end on 8th January 2020 . This is to allow respondents a proportionate and adequate amount of time to consider the materials and respond to the consultation.

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7.16 Should the GMCA decide to undertake a consultation then the total costs are estimated to be £660,000. These cost projections include all costs to deliver a consultation that fulfils the requirements of the Act and Guidance, including:

 £150,000 for response management/analysis by third party supplier;

 £130,000 for consultation best practice support and expertise;

 £100,000 for deliberative research to support the open survey responses;

 £100,000 for design, production and print of materials, including core consultation documentation and assets to support the awareness-raising activity; and

 £180,000 for communications and engagement activity to ensure full reach and awareness across the public, businesses, and other interested parties in GM and beyond. This is in addition to activity on existing GM free channels.

8. NEXT STEPS

8.1 The Act sets out the further legislative steps that must be undertaken by an authority once a consultation has been undertaken. Section 123G of the Act provides that the GMCA must publish a report setting out:

 its response to the consultation; and

 its decision on whether or not to make the proposed franchising scheme.

8.2 The Act confirms that any decision on whether or not to make the proposed franchising scheme is exercisable only by the Mayor.

9. RECOMMENDATIONS

9.1 Members are recommended to endorse the recommendations set out in this report.

Eamonn Boylan

Chief Executive, TfGM and GMCA

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DRAFT

TRANSPORT ACT 2000

The Greater Manchester Franchising Scheme for Buses [20 ]

Made [ ]

ARRANGEMENT OF THE SCHEME

1. CITATION AND COMMENCEMENT…………………………………………………………………………………1

2. INTERPRETATION………………………………………………………………………………………………….……...1

3. THE FRANCHISNIG SCHEME AREA AND SUB-AREAS……………………………………………………...2

4. ENTRY INTO LOCAL SERVICES CONTRACTS…………………………………………………………….……..2

5. SERVICES UNDER LOCAL SERVICE CONTRACTS……………………………………………………………..3

6. EXCEPTIONS FROM THE SCHEME……………………………………………………………………….………..3

7. SCHEME FACILITIES………………………………………………………………………………………………….…..3

8. PLAN FOR CONSULTING ON OPERATION OF THE SCHEME……………………………………………3

ANNEXES TO THE SCHEME………………………………………………………………………………………………………..5

ANNEX 1: SERVICES INCLUDED – ARTICLE 5…………………………………………………………………….………..5

ANNEX 2: SERVICES INCLUDED – ARTICLE 5.2.3………………………………………………………………………..12

ANNEX 3: EXCEPTED SERVICES – ARTICLE 6………………………………………………………………………………15

ANNEX 4: TEMPORARY EXCEPTIONS – ANNEX 3 PARAGARPHS 1.2 AND 1.3………………………………16

ANNEX 5: FRANCHISING SCHEME SUB-AREAS…………………………………………………………………………..27

Franchising Scheme Document Page 17 FINAL DRAFT – COMMERCIAL IN CONFIDENCE 1

WHEREAS:

A The Transport Act 2000 (as amended) ("2000 Act") makes provision for a franchising authority to make a franchising scheme covering the whole or any part of its area. The GMCA is a franchising authority as defined in the 2000 Act.

B The GMCA gave notice of its intention to prepare an assessment of a proposed scheme in accordance with sections 123B and section 123C(4) of the 2000 Act on 30 June 2017. Having complied with the process as set out in the Act, the GMCA may determine to make the scheme in accordance with sections 123G and 123H of the 2000 Act.

NOW, therefore, the GMCA, in exercise of the powers conferred on it by sections 123G and 123H of the 2000 Act, and of all other powers enabling it in that behalf, hereby MAKES THE FOLLOWING FRANCHISNG SCHEME (the "Scheme"):

1. CITATION AND COMMENCEMENT

1.1. This Scheme may be cited as the Greater Manchester Franchising Scheme for Buses [20 ] and is made on [ ].

1.2. This Scheme shall come into operation on [ ] and shall remain in operation thereafter unless varied or revoked in accordance with the 2000 Act.

2. INTERPRETATION

2.1. In this Scheme:

2.1.1 "1985 Act" means the Transport Act 1985;

2.1.2 "2000 Act" has the meaning given to it in Recital A;

2.1.3 "Commencement Date" has the meaning ascribed to it in article 1.2;

2.1.4 "Franchising Scheme Area" means the GMCA Area;

2.1.5 “Franchising Scheme Sub-Area A” means the area shaded blue in the map of Annex 5, being part of the Franchising Scheme Area;

2.1.6 “Franchising Scheme Sub-Area B” means the area shaded red in the map of Annex 5, being part of the Franchising Scheme Area;

2.1.7 “Franchising Scheme Sub-Area C” means the area shared green in the map of Annex 5, being part of the Franchising Scheme Area;

2.1.8 "Franchising Scheme Sub-Area" means each of Franchising Scheme Sub-Area A, Franchising Scheme Sub-Area B and Franchising Scheme Sub-Area C;

2.1.9 "GMCA" means the Greater Manchester Combined Authority;

2.1.10 "GMCA Area" means the area consisting of the areas of the metropolitan district councils for the local government areas of Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford and Wigan;

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2.1.11 “Large Franchise Contract” shall mean a Local Service Contract which (together with any contract referred to in article 5.3) has a Peak Vehicle Requirement of no less than [ ] vehicles;

2.1.12 “Local Service Contract” has the same meaning as in section 123A(5) of the 2000 Act.

2.1.13 "Local Services" has the same meaning as in section 2 of the 1985 Act;

2.1.14 "Operator" means a person operating a local service, and references to an Operator shall be construed in accordance with section 137(7) of the 1985 Act;

2.1.15 “Peak Vehicle Requirement” means the number of vehicles required to operate the Local Services in accordance with the terms of a Large Franchise Contract and at its highest frequency;

2.1.16 "Scholars' Service" means a Local Service providing transport for pupils to and/or from schools within the Franchising Scheme Area which does not provide transport to the general public;

2.1.17 "TfGM" means Transport for Greater Manchester.

3. THE FRANCHISING SCHEME AREA AND SUB-AREAS

3.1. The GMCA Area is hereby designated as the area to which the Scheme relates1.

3.2. Franchising Scheme Sub-Area A, Franchising Scheme Sub-Area B and Franchising Scheme Sub-Area C are specified areas within the GMCA Area2.

4. ENTRY INTO LOCAL SERVICE CONTRACTS

4.1. The date on which a Local Service Contract to provide a Local Service may first be entered into:3

4.1.1 in respect of the Franchising Scheme Sub-Area A, shall be [ ];

4.1.2 in respect of the Franchising Scheme Sub-Area B, shall be [ ] ; and

4.1.3 in respect of the Franchising Scheme Sub-Area C, shall be [ ].

4.2. The minimum period that is to expire between the dates set out in article 7.1 and the provision of a Local Service under a Local Service Contract in each such Franchise Scheme Sub-Area shall be a period of [ ]months.

1 s123H(2)(a). 2 S123H(3)(a). 3 Section 123H(2)(c).

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5. SERVICES UNDER LOCAL SERVICES CONTRACTS

5.1. Subject to paragraph 2 of this article and to article 6, the Local Services that are appropriate, and are intended, to be provided under Local Service Contracts are those specified in Annex 1 and Annex 2 to this Scheme4.

5.2. Such services do not include:

5.2.1 any Local Service marked * in Annex 1 to the extent that it operates within Franchise Scheme Sub-Area B until immediately before the date on which subsections (2) and (3) of section 123J of the 2000 Act apply to Franchise Scheme Sub-Area B;

5.2.2 any Local Service marked + in Annex 1 to the extent it operates within Franchise Scheme Sub-Area C until immediately before the date on which subsections (2) and (3) of section 123J of the 2000 Act apply to Franchise Scheme Sub-Area C; and

5.2.3 any Local Service listed in Annex 2 to the extent that it serves a school or college located within Franchise Scheme Sub-Area B or Franchise Scheme Sub-Area C until immediately before the date on which subsections (2) and (3) of section 123J of the 2000 Act apply to Franchise Scheme Sub-Area B or Franchise Scheme Sub-Area C respectively.

5.3. The GMCA may agree with a person with whom a Local Service Contract has been made that that person should also provide in conjunction with that service a Local Service referred to in article 5.2 otherwise than under a Local Service Contract.

6. EXCEPTIONS FROM THE SCHEME

6.1. The Local Services excepted from regulation arising because of the Scheme are those listed in Annex 3.

7. SCHEME FACILITIES

7.1. The additional facilities that the GMCA consider appropriate to provide in the GMCA Area are such depots as may facilitate the letting of the Large Franchise Contracts.

8. PLAN FOR CONSULTING ON OPERATION OF THE SCHEME

8.1. The GMCA will consult such organisations being those that appear to the GMCA to be representative of users of Local Services (including, for the avoidance of doubt, Franchise Contract Services), and may consult other organisations and persons, as the GMCA thinks fit.

8.2. The purpose of any consultation undertaken in accordance with this article 8 is to seek the views of the users of Local Services on how well the Scheme is working5. The GMCA will consult in accordance with this article 8 immediately after the expiry of all the Franchise Service Contracts awarded in accordance with article 4.1 and as such other times periodically as the GMCA considers appropriate.

4 s123H(2)(b). 5 Section 123(A)(9).

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8.3. Any consultations carried out in accordance with this article 8 shall last for a period of time as the GMCA thinks fit so as to ensure that those organisations and persons described in article 8.1 have sufficient time to respond.

8.4. The GMCA will make available to the public its response to any consultation carried out in accordance with this article 8.

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ANNEXES TO THE SCHEME

ANNEX 1: SERVICES INCLUDED - ARTICLE 5

General Services

Leigh - Golborne - Wigan Warrington - intu Trafford Centre - Manchester City Centre + Wythenshawe - Northenden - Manchester City Centre + Wythenshaw Hospital - Wythenshawe - Manchester City Centre + Manchester Airport - Wythenshawe - Manchester City Centre + Timperley - Northenden - Manchester City Centre + Brookhouse - Eccles - Manchester City Centre Withington - Manchester City Centre + Middleton - Moston - Manchester City Centre * Alkrington - Moston - Manchester City Centre * Middleton - NMGH Circular Higher Blackley - Moston - Manchester City Centre * Altrincham - Wythenshawe – Stockport Middleton - Birch Circular Leigh - Boothstown - intu Trafford Centre Middleton - Boarshaw Circular Middleton - Moorclose Circular Salford Quays - Eccles – Worsley Wigan - Boothstown - intu Trafford Centre Bury - Whitefield - Manchester City Centre * East Didsbury - University - Manchester City Centre + West Didsbury - University - Manchester City Centre + West Didsbury - Manchester City Centre + Cheetham Hill - Moston – Oldham Hyde - Chorlton - intu Trafford Centre + Hollinwood - Failsworth - Mandley Park Middleton - NMGH - Manchester City Centre * Oldham - Failsworth – Middleton * Flixton - Urmston - Manchester City Centre + Norden - Middleton - Manchester City Centre * Bury - Middleton - Manchester City Centre * Rochdale - Middleton - Manchester City Centre * East Didsbury - Gorton - Newton Heath + Withington - Gorton - Newton Heath Reddish - Withington – Wythenshawe intu Trafford Centre – Wythenshawe + Greenfield - Oldham - Manchester City Centre * Rochdale - Chadderton - Manchester City Centre * Rochdale - Shaw - Manchester City Centre * Royal Oldham Hospital - Oldham – Limeside Huddersfield - Uppermill - Oldham – Manchester * Langley - Middleton - Manchester City Centre - Manchester Royal Infirmary + Hazel Grove - Stockport - University - Manchester City Centre + Hazel Grove - Stockport - Manchester City Centre +

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Stockport - Green End - Longsight - Manchester City Centre + Wythenshawe – Sale Manchester Airport - Wythenshawe – Altrincham Middleton - Langley Circular Wigan - Highfield Grange Circular Manchester City Centre - Spinningfields Circular intu Trafford Centre - Bolton Hattersley - Hyde - Manchester City Centre + Stockport - Reddish - Manchester City Centre + Hyde - Haughton Green - Manchester City Centre + Denton - Dane Bank - Manchester City Centre + Gee Cross - Denton - Manchester City Centre + Gee Cross - Town Lane - Manchester City Centre + Ashton - Droylsden - Manchester City Centre + Ashton - Droylsden - Clayton - Manchester City Centre + Manchester City Centre - Openshaw - Ashton – Stalybridge + Manchester City Centre - Stalybridge – Glossop + Manchester City Centre - Dukinfield – Stalybridge + Dukinfield - Audenshaw - Manchester City Centre + Ashton - Littlemoss - Manchester City Centre + Ashton - Hartshead - Clayton - Manchester City Centre + Ashton - Broadoak Circular Glossop - Stalybridge – Ashton Glossop - Hadfield - Stalybridge - Ashton intu Trafford Centre - Didsbury – Stockport + Rochdale - Chadderton - Manchester City Centre * intu Trafford Centre - Stretford – Altrincham + intu Trafford Centre - Flixton – Altrincham + intu Trafford Centre - Chorlton – Stockport + intu Trafford Centre - Old Trafford - Manchester City Centre + Partington - Flixton - Urmston - Manchester City Centre + Partington - Urmstone - Stretford - Manchester City Centre + Flixton - Stretford - Hulme - Manchester City Centre + Leigh - Boothstown - Worsley - Manchester City Centre + Sale - Partington Circular Sale - Sale West Circular Sale - Ashton on Mersey Circular Altrincham - Sale - Manchester City Centre + Swinton - Salford Shopping City - Manchester City Centre Wythenshawe - Sale – Eccles + Trafford General Hospital - Withington Hospital Trafford Centeral Hospital - Gorse Hill Altrincham - Sale Altrincham - Oldfield Brow circular Altrincham - Hale Moss Circular Altrincham - Warburton circular Altrincham - Timperley circular Altrincham - Bowdon Vale Circular East Didsbury - Northenden - Altrincham - Manchester Airport Little Hulton - Swinton - Salford

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intu Trafford Centre - Trafford Bar - Manchester City Centre + Manchester City Centre - Victoria Circular Wigan - Highfield Grange Circular Bolton - intu Trafford Centresalfor Stockport - Cheadle Hulme Circular Stockport - Cheadle Heath Circular Handforth Dean - Cheadle - Stockport Stockport - Handforth Dean Grove Lane - Cheadle Hulme - Stockport Stockport - Offerton Circular Haughton Green - Brinnington - Stockport Stockport - Haughton Green Circular Stockport - Brinnington Circular Denton - Brinngton - Stockport Stockport - Bridge Hall Reddish - Stockport Worsley - Eccles - Manchester City Centre Ashton - Hyde - Stockport Ashton - Smallshaw Circular Ashton - Hurst Cross - Smallshaw Circular Ashton - Denton Circular Ashton - Crowhill Circular Bryn - Leigh - Manchester City Centre Oldham - Stalybridge - Hyde Glossop - Hattersley - Hyde Hyde - Gee Cross Circular Oldham - Lees - Stalybridge - Hyde Ashton - Denton Circular Gee Cross - Hyde - Ashton Ashton - Haughton Green Circular Ashton - Stalybridge – Carrbrook Ashton - Uppermill – Oldham + Uppermill - Mossley – Ashton + Carrcote - Uppermill – Stalybridge + Denshaw - Uppermill - Stalybridge – Ashton * Denshaw - Uppermill – Greenfield Hayfield - New Mills - Marple – Stockport Manchester City Centre - Swinton - Tyldesley Bolton - Little Hulton - Manchester City Centre Stockport - Hazel Grove - Hayfield Chorley - Standish - Wigan Stockport - Woodbank Park Circular Wythenshawe Hospital - Cheadle Hulme - Stockport Manchester Airport - Wythenshawe - Stockport Stockport - Woodsmoor Circular Stockport - Hazel Grove Circular Hazel Grove - Woodsmoor - Stockport Mellor - Stepping Hill - Stockport Cheadle Hulme - Stockport Bolton - Farnworth - Manchester City Centre

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Woodley - Romiley - Bredbury - Stockport Stockport - Marple Circular Hyde - Stalybridge – Ashton Gee Cross - Stalybridge – Ashton Logistics North - Walkden - Manchester City Centre Ashton - Hazelhurst Circular Ashton - Smallshaw Circular Limehurst Farm – Ashton Newton Heath - Fitton Hill – Ashton * Ashton - Hazelhurst Circular Wigan - Kitt Green Circular Oldham - Royton Circular Shaw - High Crompton - Rushcroft Circular Oldham - Firwood Park Circular Denshaw - Moorside – Oldham * Stalybridge - Oldham – Shaw + Ashton - Oldham – Rochdale Sale - Northenden - Manchester City Centre + Oldham - Higginshaw Circular Middleton - Royton – Oldham Middleton - Chadderton – Oldham Oldham - Less Circular Middleton - Chadderton – Ashton * Ashton – Dukinfield Oldham - Fitton Hill Circular Reddish - East Didsbury - Manchester City Centre + Woodford - East Didsbury - Manchester City Centre + Stockport - East Didsbury - Manchester City Centre + Manchester Airport - Wighington - Manchester City Centre + Rochdale - Turf Hill – Castleton Richdale - Kirkholt – Castleton Shaw - Turf Hill – Rochdale Stockport - Manchester City Centre + Rochdale – Syke Rochdale - Foxholes Circular Norden - Bamford – Rochdale Norden - Cutgate – Rochdale Rochdale - Bagslate – Norden Rochdale – Wallbank Rochdale - Shawclough – Wallbank Peppermint Bridge - Newhey – Rochdale Rochdale - Stansfield Circular Littleborough - Hollingworth Lake – Rochdale Littleborough – Rochdale Littleborough – Rochdale Wardle – Rochdale Norden - Bamford - Heywood – Bury * Rochdale - Ladyhouse Circular Rochdale - Bamford – Bury * Rochdale - Greave - Bamford – Bury *

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Bury – Tottington * Bolton - Bury – Rochdale * Bury - Ramsbottom Circular * Heywood - Fairfield Hospital – Bury * Bury - Summerseat – Ramsbottom * Bury - Brandlesholme – Ramsbottom * Bury – Limefield * Bury - Tottington – Bolton * Whitefield - Prestwich – Eccles * Bury – Nangreaves * Manchester City Centre - Moston – Oldham Fern Grove – Bury * Wigan - Norley Hall Circular East Didsbury - Manchester City Centre - Salford Quays + Bolton Town Centre Circular Farnworth - Bolton - Johnson Fold Bolton - Hawrood Circular Bolton - Ainsworth – Bury Bolton - Breightmet – Bury Bury - Farnworth - Royal Bolton Hospital Bury - Whitefield - Farnworth Horwich - Westhoughton - Atherton - Leigh Middlebrook - Atherton - Leigh Failsworth - Salford - intu Trafford Centre * Little Lever - Royal Bolton Hospital - Blackrod Bolton - Radcliffe – Bury Bolton - Hall I'th Wood Circular Barrow Bridge - Bolton Salford - Old Trafford - Cheetham Hill + Egerton - Tonge Moore - Bolton Oldhams Estate - Bolton Bolton - Astley Bridge - Belmont Bolton - Bradley Fold Circular Bolton - Astley Bridge Circular Bolton - Tonge Moss Circular Bromley Cross - Bolton Bolton - Little Lever Circular Leigh - Boothstown - Bolton Higher Green - Boothstown - Bolton Highfield - Farnworth - Prestolee Ashton - Hindley - Bolton Bolton - Withins Estate Circular Manchester City Centre - NMGH Circular * Sutton Estate - Bolton Bolton - Great Lever Circular Bolton - Markland Hill - Middlebrook Wigan - Horwich - Bolton Wigan - Middlebrook - Bolton Blackrod - Brazley - Bolton Rochdale – Oldham

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Leigh - Atherton - Bolton Hag Fold - Atherton - Leigh Cranwood - Leigh Leigh - Tyldesley - Parsonage Retail Park Circular Leigh - Lowton Circular Leigh - Lowton - Pennington Circular Rushcroft - Oldham - Manchester City Centre * Leigh - Pennington - Lowton Circular Leigh - Lowton Common Circular Wigan - Hindley - Castle Hill - Leigh Leigh - Tamar Hindley - Westleigh - Leigh Leigh - Westleigh Leigh - Landside Circular Leigh Infirmary - Leigh Sports Village Wigan - Beech Hill Circular Ashton Heath - Ashton-In-Makerfield - Wigan New Springs - Wigan Brookhouse - Eccles - Manchester City Centre Platt Bridge - Wigan Wigan - Castle Hll Circular Wrightington Hospital - Wigan Wigan - Standish Circular Wigan - Shevington Moor Circular Eccles - Salford Royal Hospital Circular Eccles - Worsley - Clifton Cadishead - Salford Royal Hospital - Manchester City Centre + Farnworth - intu Trafford Centre Atherton - Hag Fold Atherton - Hag Fold - Leigh Leigh - Tyldesley Circular Leigh - New Hall Farm - Tyldesley circular Ellenbrook - Manchester City Centre Rochdale - Kirkholt Circular Beech Hill - Wigan Circular Stockport - Reddish – Ashton Salford Quays - Pendleton - Clifton Wigan - Westhoughton – Bolton + Dukinfield – Audenshaw Runway Visitor Park - Manchester Airport Clifton - Salford Quays Pendleton - Seedley Circular * Wollinwood - Newton Heath - Manchester City Centre * Oldham - Failsworth - Manchester City Centre * Swinton - Salford Quays – Stretford + Stockport – Denton Bolton - Westhoughton - Wigan Leigh - Hindley - Wigan Derker - Oldham - Manchester City Centre * Holts - Oldham - Manchester City Centre *

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Sholver - Oldham - Manchester City Centre * Chorlton - Whalley Range - Manchester City Centre * Chorlton - Alexandra Park - Manchester City Centre + Chorlton - Brook's Bar - Manchester City Centre + Manchester City Centre - Chorlton – Sale + Bolton - Pendlebury - Manchester City Centre Higher Folds - Leigh - Wigan Prestwich – Simister Bury – Radcliffe Bury - Pilsworth - Manchester City Centre * Bury - Prestwich - Manchester City Centre * NMGH - Prestiwch – Pilsworth * Salford - Prestwich – Bury * Simister - Higher Broughton - Manchester City Centre * Bury - Unsworth - Manchester City Centre * Bury - Radcliffe - Manchester City Centre * Bury - Holcombe Brook – Ramsbottom Leigh - Tyldesley - Manchester City Centre – MRI + Atherton - Tyldesley - Manchester City Centre - MRI Boothstown - Mosley Common Circular Burgess Farm - Walkenden Circular Farnworth - Little Hulton - Manchester City Centre intu Trafford Centre - Manchester City Centre + Flixton - Davyhulme - Manchester City Centre + intu Trafford Centre - Northenden – Stockport Heywood - Middleton - Manchester City Centre * Carrcote - Uppermill - Manchester City Centre * Hazel Grove - Stockport - Manchester City Centre +

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ANNEX 2: SERVICES INCLUDED - ARTICLE 5.2.3

Services to Schools

Abraham Moss Community School Alder Community High School All Saints Catholic College Altrincham College of Arts Altrincham Grammar School for Boys Altrincham Grammar School for Girls Ashton-on-Mersey School Audenshaw School Bedford High School Blessed John Henry Newman College Blessed Thomas Holford Catholic College Blue Coat School Bolton St Catherine’s Academy Bramhall High School Broadoak School Buile Hill Visual Arts College Burnage Academy for Boys Bury Church of England High School Byrchall High School Cansfield High School Canon Slade School Castlebrook High School Cardinal Langley School Cedar Mount Academy Cheadle and Marple Sixth Form College Cheadle Catholic Infants/Juniors Cheadle Hulme High School Chorlton High School Co-operative Academy Failsworth Copley Academy Crompton House School Dean Trust Ardwick Denton Community College Derby High School Droylsden Academy Elton High School Egerton High School Falinge Park High School Fairfield High School for Girls Flixton Girls High School Great Academy Ashton Harper Green High School Harrytown RC High School Hawkley High School Hazel Grove High School

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Hingldey High School Hollingworth Academy Hope Academy Kingsway School Kingway Park High School Ladybridge High School Laurus Cheadle Hulme Levenshulme High School Little Lever High School Longdendale Community Language College Loreto Grammar School Loreto High School Chorlton Lostock College Lowton Church of England High School Manchester Academy Manchester Communications Academy Manchester Creative & Media Academy Manchester Enterprise Academy Central Manchester Enterprise Academy Wythenshawe Manchester Health Academy Manor High School Marple Hall School Matthew Moss High School Mossley Hollins High School Mount St Joseph RC High School Newall Green High School North Chadderton School Oasis Academy Oldham Oulder Hill Community High School Our Lady’s R.C. High School Parrenthorn High School Parrs Wood High School Philips High School Poynton High School Priestnall School Reddish Vale High School Rivington and Blackrod High School Rose Bridge Academy Royton and Crompton School Saddleworth School Sale Grammar School Sale High School Samuel Laycock High School Sharples High School Shevington High School Siddal Moor Sports College Smithills School St Ambrose Barlow RC High School and Sixth Form College St Ambrose College St Anne’s Academy

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St Anthony’s Catholic College St Cuthbert’s RC High School St Damian’s RC Science College St Edmund Arrowsmith Catholic High School St Gabriel’s RC High School St Hugh’s Catholic School St James’ Catholic High School St James’ Church of England School St John Fisher Catholic High School St John Rigby College St Joseph’s RC High School St Mary’s Catholic High School St Matthew’s RC High School St Monica’s RC High School St Paul’s Catholic High School St Patrick’s RC High School and Arts College St Peter’s Catholic High School St Peter’s RC High School St Simon’s Catholic Primary School St Thomas More RC College Standish Community High School Stretford Grammar School Stretford High School Stockport Academy The Barlow RC High School The Co-operative Academy of Manchester The East Manchester Academy The King David High School The Radclyffe School Thornleigh Salesian College Tottington High School Trinity Church of England High School Turton High School & Media Arts College Urmston Grammar School Walkden High School Wardle Academy Waterhead Academy Wellacre Academy Wellington School Westhoughton High School Westleigh High School Whalley Range 11-18 High School Werneth School William Hulme’s Grammar School Winstanley College Woodhey High School Wright Robinson College

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ANNEX 3: EXCEPTED SERVICES - ARTICLE 6

1.1 a Scholars' Service;

1.2 Any Local Service marked # in Annex 4 to the extent that it operates in Franchise Scheme Sub- Area A until immediately before the date on which subsections (2) and (3) of section 123J of the 2000 Act applies to Franchise Scheme Sub-Area B; and

1.3 Any Local Service marked ^ in Annex 4 to the extent that it operates in Franchise Scheme Sub- Area A or Franchise Scheme Sub-Area B until immediately before the date on which subsections (2) and (3) of section 123J of the 2000 Act applies to Franchise Scheme Sub-Area C.

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ANNEX 4: TEMPORARY EXCEPTIONS – ANNEX 3 PARAGRAPHS 1.2 AND 1.3

Leigh - Lowton - Golborne - Ashton – Wigan Warrington - intu Trafford Centre – Manchester ^ Wythenshawe - Baguley - Northenden – Manchester ^ Wythenshawe Hospital - Wythenshawe – Manchester ^ Manchester Airport - Wythenshawe – Manchester ^ Timperley -Brooklands - Northenden – Manchester ^ Brookhouse - Eccles - Pendleton – Manchester Leigh - Lowton - Golborne - Ashton – Wigan Southern Cemetery - Withington – Manchester ^ Middleton - Moston - Collyhurst – Manchester # Wigan – Standish – Leyland - Preston Alkrington - Moston - Collyhurst – Manchester # Middleton - Moston - NMGH – Middleton Middleton - NMGH – Middleton Higher Blackley/NMGH - Moston – Manchester # Altrincham - Sharston - Cheadle - Stockport Altrincham - Wythenshawe - Cheadle - Stockport Middleton - Rhodes - Birch - Langley Circular Leigh - Boothstown - intu Trafford Centre Middleton - Hollin - Boarshaw Circular Middleton - Boarshaw - Moorclose Circular Salford Quays - Eccles – Worsley Macclesfield – Wilmslow – Cheadle – East Didsbury Wigan - Tyldesley - Boothstown - intu Trafford Centre Bury - Whitefield - Cheetham Hill – Manchester # East Didsbury - University – Manchester ^ East Didsbury - Manchester Night Service ^ West Didsbury - Rusholme - University – Manchester ^ Manchester - West Didsbury Night Service ^ West Didsbury - Piccadilly Rail Station ^ Cheetham Hill - Crumpsall - Moston – Oldham Hyde - Chorlton - intu Trafford Centre ^ Hollinwood - Failsworth - NMGH - Mandley Park Middleton - Higher Blackley - NMGH – Manchester # Oldham - Woodhouses - Failsworth – Middleton # Flixton - Davyhulme - Urmston – Manchester ^ Norden - Middleton – Manchester # Bury - Darn Hill - Middleton – Manchester # Rochdale - Middleton - Blackley – Manchester # East Didsbury - Gorton - Newton Heath ^ Southern Cemetery - Gorton - Newton Heath Reddish - Withington - Wythenshawe Rochdale - Stakehill - Middleton – Manchester intu Trafford Centre – Wythenshawe ^

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Greenfield - Lees - Oldham – Manchester # Rochdale - Chadderton - Moston – Manchester # Rochdale - Shaw - Chadderton – Manchester # Royal Oldham Hospital - Oldham – Limeside Huddersfield - Uppermill - Oldham – Manchester # Langley - Middleton - Manchester – MRI ^ Hazel Grove - Stockport – Manchester ^ Hazel Grove - Stockport – Manchester ^ Hazel Grove - Manchester Night Service ^ Stockport - Green End - Longsight – Manchester ^ Wythenshawe - Sale Manchester Airport - Wythenshawe - Altrincham Middleton - Langley Circular Wigan - Marus Bridge - Highfield Grange Circular Piccadilly - Chinatown - Spinningfields circular intu Trafford Centre - Eccles - Swinton - Bolton Hattersley - Hyde - Denton – Manchester ^ Hyde - Denton - Manchester Night Service ^ Stockport - Reddish - Belle Vue – Manchester ^ Stockport - Reddish - Manchester Night Service ^ Hyde - Haughton Green - Belle Vue – Manchester ^ Denton - Dane Bank - West Gorton – Manchester ^ Gee Cross - Denton - West Gorton – Manchester ^ Gee Cross - Town Lane - West Gorton – Manchester ^ Ashton - Droylsden - Clayton – Manchester ^ Ashton - Droylsden - Manchester Night Service ^ Ashton - Droylsden - Clayton – Manchester ^ Manchester - Openshaw - Ashton – Stalybridge ^ Manchester - Stalybridge - Glossop Night Service ^ Manchester - Dukinfield – Stalybridge ^ Dukinfield - Audenshaw - Openshaw – Manchester ^ Ashton - Littlemoss – Manchester ^ Ashton - Droylsden - Clayton – Manchester ^ Ashton - Broadoak Circular Glossop - Stalybridge - Ashton Glossop - Stalybridge - Ashton intu Trafford Centre - Didsbury – Stockport ^ Rochdale - Chadderton – Manchester # intu Trafford Centre - Stretford – Altrincham ^ intu Trafford Centre - Flixton – Altrincham ^ Trafford Centre - Chorlton – Stockport ^ intu Trafford Centre - Old Trafford – Manchester ^ Partington - Flixton - Urmston – Manchester ^ Partington - Urmston - Stretford – Manchester ^ Flixton - Stretford - Hulme – Manchester ^

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Leigh - Boothstown - Worsley – Manchester Sale - Partington circular Sale - Sale West - Sale Circular Sale - Ashton on Mersey - Sale Circular Altrincham - Sale - Hulme – Manchester ^ Swinton - Salford Shopping City - Manchester Wythenshawe - Sale - Stretford – Eccles ^ Trafford General Hospital - Withington Hospital Trafford General Hospital - Stretford - Gorse Hill Altrincham - Timperley - Sale Altrincham - Oldfield Brow circular Altrincham - Well Green - Hale Moss Circular Altrincham - Warburton circular Altrincham - Timperley circular Altrincham - Timperley circular Altrincham - Bowdon Vale Circular East Didsbury - Northenden - Altrincham - Airport Little Hulton - Walkden - Swinton - Salford intu Trafford Centre - Trafford Bar – Manchester ^ Piccadilly - Deansgate - Victoria circular Wigan - Pemberton - Highfield Grange circular Bolton - intu Trafford Centre Express Stockport – Lancashire Hill Circular Stockport - Cheadle Hulme - Hazel Grove Circ Stockport - Bramhall - Cheadle Heath Circular Stockport - Cheadle - Cheadle Heath Circular Stockport - Cheadle Heath - Adswood Circular Handforth Dean - Cheadle - Stockport Stockport - Handforth Dean Grove Lane - Cheadle Hulme - Adswood - Stockport Stockport - Offerton Estate - Stockport Circular Haughton Green - Brinnington - Stockport Stockport - Denton - Haughton Green Circular Stockport - Portwood - Brinnington Circular Denton - Brinnington - Portwood - Stockport Stockport - Bridge Hall Reddish - Stockport Worsley - Eccles – Manchester Ashton - Hyde - Stockport - Manchester Airport Ashton - Smallshaw - Hurst Cross – Ashton Ashton - Smallshaw – Ashton Ashton - Hurst Cross - Smallshaw – Ashton Ashton - Town Lane - Denton Circular Ashton - Waterloo - Crowhill - Taunton Circular Ashton - Crowhill Circular

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Bryn - Leigh - Worsley - Pendleton - Manchester Oldham - Mossley - Stalybridge – Hyde ^ Glossop - Hattersley - Hyde Hospital - Hyde Hyde - Hyde Hospital - Gee Cross Circular Oldham - Lees - Carrbrook - Stalybridge – Hyde ^ Hyde - Backbower - Hyde Hospital Circular Ashton - Dukinfield - Denton Circular Gee Cross - Hyde – Ashton Ashton - Denton - Haughton Green Circular Ashton - Stalybridge - Copley – Carrbrook Ashton - Tameside Hospital - Uppermill – Oldham ^ Uppermill - Mossley - Heyrod – Ashton ^ Carrcote - Uppermill - Stalybridge – Ashton ^ Denshaw - Uppermill - Stalybridge – Ashton # Denshaw - Diggle - Uppermill - Greenfield Hayfield - New Mills - Marple - Stockport Manchester - Swinton - Walkden - Tyldesley Bolton - Little Hulton - Swinton - Manchester Stockport - Hazel Grove - Hayfield Chorley - Coppull - Standish - Wigan Stockport - Woodbank Park - Stockport Circular Wythenshawe Hospital - Cheadle Hulme - Stockport Manchester Airport - Wythenshawe - Stockport Stockport - Woodsmoor - Fiveways Circular Stockport - Hazel Grove Circular Hazel Grove - Stockport Mellor - Offerton - Stepping Hill - Stockport Cheadle Hulme - Stockport Bolton - Farnworth - Manchester Woodley - Romiley - Bredbury - Stockport Stockport - Marple - Romiley Circular Stockport - Bredbury - Romiley - Marple Circular Hyde - Hattersley - Stalybridge – Ashton Gee Cross - Hyde - Stalybridge – Ashton Logistics Nth - Walkden - Swinton - Manchester Ashton - Hazelhurst - Kings Rd - Ashton Circular Ashton - Smallshaw - Hurst Cross – Ashton Limehurst Farm - Waterloo - Ashton Newton Heath - Fitton Hill – Ashton # Ashton - Hazelhurst - Ashton Circular Wigan - Norley Hall - Kitt Green Circular Oldham - Royal Oldham Hospital - Royton Circular Shaw - Rushcroft - High Crompton Circular Shaw - High Crompton - Rushcroft Circular Oldham - Mills Hill - Firwood Park Circular

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Denshaw - Moorside – Oldham # Stalybridge - Oldham – Shaw ^ Ashton - Oldham - Royton – Rochdale Sale - Northenden – Manchester ^ Oldham - Roxbury - Higginshaw - Oldham Circular Oldham - Higginshaw - Roxbury - Oldham Circular Middleton - Royton – Oldham Middleton – Oldham Oldham - Chadderton - Oldham - Lees Circular Middleton - Chadderton - Coppice – Ashton # Ashton - Dukinfield - Ashton Oldham - Alts – Oldham Reddish - East Didsbury - Rusholme – Manchester ^ Woodford - Bramhall - East Didsbury – Manchester ^ Stockport - East Didsbury - Rusholme – Manchester ^ Manchester Airport - Wythenshawe – Manchester ^ Rochdale - Belfield - Turf Hill - Castleton Rochdale - Belfield - Kirkholt – Castleton Shaw - Turf Hill – Rochdale Manchester Airport - Manchester Night Service Stockport – Manchester ^ Rochdale - Infirmary – Syke Rochdale - Foxholes Circular Norden - Bamford - Bury Rd – Rochdale Norden – Rochdale Rochdale - Spotland Road - Bagslate – Norden Rochdale - Healey Corner – Wallbank Rochdale - Shawclough – Wallbank Peppermint Bridge - Newhey - Milnrow – Rochdale Rochdale - Shore - Stansfield Circular Littleborough - Lake – Rochdale Littleborough – Rochdale Rochdale - Stansfield - Shore Circular Littleborough – Rochdale Wardle – Rochdale Norden - Bamford - Heywood - Summit – Bury # Rochdale - Milnrow - Ladyhouse Circular Rochdale - Daniel Fold - Bamford – Bury # Rochdale - Greave - Bamford - Jericho – Bury # Bury – Tottington # Bolton - Breightmet - Bury - Sudden – Rochdale # Bury - Walmersley - Holcombe Brook Circular # Bury - Holcombe Brook - Walmersley Circular Heywood - Fairfield Hospital – Bury # Bury - Summerseat – Ramsbottom #

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Bury - Brandlesholme – Ramsbottom # Bury – Limefield # Bury - Tottington - Tonge Moor – Bolton # Bury – Rawtenstall – Haslingden – Blackburn Whitefield - Prestwich - Swinton – Eccles # Bury – Nangreaves # Manchester - NMGH - Moston – Oldham Fern Grove - Fishpool – Bury # Wigan - Kitt Green - Norley Hall Circular East Didsbury - Manchester - Salford Quays ^ Bolton Town Centre Shuttle Farnworth - Hospital - Bolton - Johnson Fold Bolton - Tonge Moor - Harwood Circular Bolton - Ainsworth - Walshaw – Bury Bolton - Breightmet - Ainsworth - Walshaw – Bury Bury - Farnworth - Royal Bolton Hospital Bury - Whitefield - Farnworth Horwich - Westhoughton - Atherton - Leigh Middlebrook - Atherton - Leigh Failsworth - NMGH - Salford - intu Trafford Centre # Little Lever - Royal Bolton Hospital - Blackrod Bolton - Little Lever - Radcliffe – Bury Bolton - Halliwell - Hall I'th Wood Circular Barrow Bridge - Halliwell - Bolton Bolton - Hall I'th Wood - Halliwell Circular Salford - Old Trafford - Cheetham Hill ^ Egerton - Bromley Cross - Tonge Moor - Bolton Oldhams Estate - Astley Bridge - Bolton Bolton - Astley Bridge - Belmont Bolton - Darcy Lever - Bradley Fold Circular Bolton - Astley Bridge - Bolton Circular Bolton - Bromley Cross - Tonge Moor Circular Toppings - Bolton Bolton - Darcy Lever - Little Lever Circular Leigh - Boothstown - Walkden - Bolton Higher Green - Boothstown - Walkden - Bolton Highfield - Farnworth - Kearsley - Prestolee Ashton - Hindley - Westhoughton - Bolton Bolton - Tonge Fold - Withins - Breightmet Circ Bolton - Tonge Fold - Breightmet - Withins Circ Manchester - NMGH - Manchester Circular # Sutton Estate - Lever Edge - Bolton Bolton - Great Lever - Lever Edge Circular Bolton - Lever Edge - Great Lever Circular Bolton - Markland Hill - Middlebrook

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Wigan - Aspull - Horwich - Lostock - Bolton Wigan - Aspull - Blackrod - Horwich - Bolton Blackrod - Brazley - Bolton Rochdale – Oldham Leigh - Atherton - Daubhill - Bolton Hag Fold - Atherton - Westleigh - Leigh Crankwood - Plank Lane - Leigh Leigh - Common Lane Leigh - Gin Pit - Tyldesley - Parsonage Retail Park Circular Leigh - Lowton - Leigh Circular Leigh - Plank Lane - Lowton - Leigh Circular Rushcroft - Oldham - Middleton – Manchester ^ Leigh - Pennington - Lowton Circular Leigh - Lowton Circular Wigan - Hindley - Castle Hill - Tamar - Leigh Leigh - Tamar Hindley - Westleigh - Leigh Leigh - Abbey Lane Leigh - Hope Carr - Landside Circular Leigh Infirmary - Leigh - Leigh Sports Village Wigan - Springfield Road - Beech Hill Circular Windy Arbour – Ashton-In-Makerfield Ashton Heath - Ashton-In-Makerfield - Wigan New Springs - Wigan Brookhouse - Eccles - Weaste – Manchester Platt Bridge - Marlborough Avenue - Wigan Wigan - Belle Green - Castle Hill Circular Wrightington Hospital - Shevington - Wigan Wigan - Bradley Mills - Standish Circular Wigan - Standish - Shevington Moor Circular Wigan - Pemberton - Standish Circular Eccles - Ellesmere Park - Salford Royal - Eccles Eccles - Worsley - Swinton - Clifton Billinge - St Peter's RC High School Cadishead - Eccles - Salford Royal – Manchester ^ Farnworth - Eccles - intu Trafford Centre Atherton - Hag Fold Clockwise Atherton - Hag Fold - Atherton - Leigh Leigh - Atherton - Tyldesley - Atherton - Leigh Leigh - New Hall Farm - Tyldesley Circular Royal Bolton Hospital - Leigh Rochdale - Queensway - Kirkholt Circular Wigan - Gidlow Lane - Beech Hill Circular Stockport - Reddish - Droylsden - Ashton Denton Community College (Two Trees) - Dane Bank

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Whalley Range - Longsight - Wright Robinson College Ancoats - Wright Robinson College ^ Clayton - Wright Robinson College ^ Denton - Wright Robinson High School Burnage - Wright Robinson College Salford Quays - Pendleton - Eccles - Clifton Miles Platting - St Peter's High School ^ Newton Heath - St Peter's High School # Beswick - Clayton - St Peter's RC High School Moston - Cedar Mount School ^ Wigan - Aspull - Westhoughton - Ladybridge – Bolton ^ Alan Turing Way - St Thomas More Hulme - Loreto High School Dukinfield – Audenshaw Newton Heath - East Manchester Academy ^ Northern Moor - Benchill - St Pauls HS Cheetham Hill - Whalley Range High School ^ Runway Visitor Park - Manchester Airport Clifton - Ordsall - Salford Quays Burnage - Loreto College Carmel College - Platt Bridge Heald Green - Loreto College Pendleton - Seedley - Agecroft – Pendleton # Hollinwood - Woodhouses - Newton Heath – Manchester # Barlow High School - Ladybarn Burnage High School – Manchester ^ Gatley - Heald Green - St. James High School # Pendleton - Agecroft - Seedley – Pendleton Oldham - Limeside - Failsworth – Manchester # Littlemoss - Wright Robinson High School Oldham - Limeside - Failsworth – Manchester # Fitton Hill - Oldham - St Damian's RC Science College ^ Withington - Sale Grammar School Swinton - Pendleton - Salford Quays – Stretford ^ Parrenthorn HS - Cheetham Hill - Higher Blackley Burnage High School – Manchester # Stockport - Denton Bolton - Westhoughton - Hindley - Wigan Leigh - Hindley - Hindley Green - Wigan Hyde - Woodley Precinct - Marple Hall High Mellor - Marple Hall High School Hazel Grove - Harrytown High School Bredbury - Marple Hall High School Lane Ends - Marple Hall School Derker - Oldham - Moston – Manchester #

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Cheadle Heath - St James's RCHS Holts - Blessed John Henry Newman College # Stockport - Cheadle Hulme - St James' RC High St James R.C School - A6/Corbar Road Stalybridge - Longdendale High School Holts - Greenacres - Oldham – Manchester* Copley High School - Ridge Hill Stockport - Hazel Grove High School Bosden Farm - High Lane - Hazel Grove High School Sholver - Oldham - Hollinwood – Manchester # Chorlton - Whalley Range – Manchester ^ Hattersley - All Saints R.C.H.S. Stockport -Bosden Farm - Marple Hall School Harrytown High School - Stockport Cheadle Hulme High School - Heald Green - Cheadle Hulme Heald Green - Laurus Cheadle Hulme - Cheadle Hulme HS Chorlton - Alexandra Park – Manchester ^ Cheadle Heath - Bramhall High School Shaw Heath - St James RCHS Chorlton - Alexandra Park - Manchester Chorlton - Brooks's Bar – Manchester ^ Park Rd/Woodstock St - Lees - Waterhead Academy St Damians Science College - Ashton - Droylsden Adswood - Laurus Cheadle Hulme - Cheadle Hulme High Manchester - Chorlton - Sale Night Service ^ Cheadle Heath - Hazel Grove HS # St James' HS - Bramhall - Davenport - Stockport Bolton - Farnworth - Pendlebury - Manchester Higher Folds - Leigh - Platt Bridge - Wigan Prestwich – Simister Adswood - Stockport Academy Winstanley - Marus Bridge - St John Fisher Bury – Radcliffe Bury - Pilsworth - Carr Clough – Manchester # Bury - Prestwich - Agecroft – Manchester # NMGH - Cheetham Hill - Prestwich – Pilsworth # Salford - Prestwich - Whitefield – Bury # Simister - Higher Broughton – Manchester # Bury - Unsworth - Prestwich – Manchester # Bury - Radcliffe - Whitefield – Manchester # Bury - Brandleholme - Holcombe Brook – Ramsbottom Leigh - Tyldesley - Ellenbrook - Manchester – MRI Atherton - Tyldesley - Ellenbrook - Manchester – MRI ^ Ellenbrook – Manchester ^ Ellenbrook - Manchester – MRI ^

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Boothstown - Mosley Common Circular Burgess Farm - Walkden - Walkden Station circular Farnworth - Little Hulton - Swinton - Manchester intu Trafford Centre - Manchester Express ^ Flixton - Davyhulme - Manchester Express ^ intu Trafford Centre - Northenden – Stockport Heywood - Middleton - Manchester Limited Stop # Carrcote - Uppermill - Manchester Limited Stop # Hazel Grove - Stockport – Manchester ^ Hightown - Our Lady's RC High School Hattersley - Alder Community High School Strangeways - Our Lady's RC High School ^ Cheetham Hill - Manchester Creative Academy Hindley Green - St Edmund Arrowsmith HS Ryder Brow Station - Barlow RC High School Newton Heath - Our Lady's RC High School Littleborough - St Cuthbert's RC High School Irlam - St Patrick's RC High School ^ Birch Hill - St Cuthbert's RC High School Bradley Fold - St Monica's RC High School # Oldham - Great Academy Ashton ^ Norden - Bluecoat School Ordsall District Centre - St Patricks RCHS Moss Side - St Peter's High School Sholver - Blessed John Henry Newman College Failsworth - Blessed John Henry Newman College St Monica's RC High School – Ainsworth # Platt Bridge - Bickershaw - Hindley HS Abram - Platt Bridge - Cansfield Specialist Language College Abram - Platt Bridge - Rose Bridge Academy Hindley Green - Byrchall High School Bickershaw - Byrchall Hs/St Edmund Arrowsmith HS Hindley Green - Byrchall High School Hindley Green - St Edmund Arrowsmith HS Boothstown - Ellenbrook Rd - Walkden HS Mossley Common - Boothstown - Walkden HS Moston - Radclyffe Schools Boar's Head - Standish - St Peter's RC HS Dukinfield - Samuel Laycock School Failsworth - St Matthews High School Reddish - St Thomas More High School Bolton Road/Langworthy Road - St Patrick's RCHS Hazel Grove – Harrytown Littleborough - St Cuthbert's RC High School Smallbridge - Fallinge Park High School

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Reddish - St Thomas More High School Ancoats - St Matthew's High School ^ Oldham - Great Academy Ashton ^ Hattersley - Alder Community High School ^ Gidlow - Beech Hill - Whitley - Standish HS Woodfield School - Worthington Park - Standish HS

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ANNEX 5: FRANCHISING SCHEME SUB-AREAS Page 44 Page

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DRAFT

TRANSPORT ACT 2000

The Greater Manchester Franchising Scheme for Buses 2020

COVERING SHEET

For the purposes of undertaking a consultation in accordance with section 123E of the Transport Act 2000 (as amended by the Bus Services Act 2017), provisional or estimated dates, periods or numbers for inclusion in this proposed scheme have now been provided.

The date that it is proposed the scheme could be made is 06/03/2020 (see article 1.1). Should this transpire, the title of this document would be "The Greater Manchester Franchising Scheme for Buses 2020". This date (and subsequently all others) may change depending on the progress of the consultation and any subsequent decision making process. The assessment of the proposed bus franchising scheme includes a draft procurement plan which is underpinned by various key assumptions, one of which is a Mayoral decision in December 2019 that the scheme will be made. Accordingly, because the date of any Mayoral decision is later than that anticipated in the assessment, the dates included in this scheme been moved back accordingly. The dates when a local service contract may first be entered into in Sub-Area A (article 4.1.1), in Sub-Area B (article 4.1.2) and in Sub-Area C (article 4.1.3), are presently proposed to be 02/04/2021, 25/03/2022 and 10/03/2023 respectively. In this context, it is also proposed that the period in respect of article 4.2 will be 9 months. Relatedly, this means that the date proposed in respect of article 1.2 would be 02/01/2022.

It is intended that article 2.1.11, which defines the meaning of the term "Large Franchise Contract", refers to 34 in respect of the number of vehicles. This would be consistent with the assessment.

Since undertaking an audit on the assessment the proposed scheme has been amended to clarify the services which operate across various Sub-Areas during transition and these have been updated in Annex 1 and Annex 4 as appropriate. A different map has also been included in Annex 5 but those Sub-Areas have not changed.

As noted above, the dates, periods and numbers referred to above and within the draft scheme are provisional and are included only for the purposes of the consultation.

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DRAFT

TRANSPORT ACT 2000

The Greater Manchester Franchising Scheme for Buses 2020

Made 06/03/2020

ARRANGEMENT OF THE SCHEME

1. CITATION AND COMMENCEMENT…………………………………………………………………………………1 2. INTERPRETATION………………………………………………………………………………………………….……...1 3. THE FRANCHISING SCHEME AREA AND SUB-AREAS………………………………………………….…..2 4. ENTRY INTO LOCAL SERVICE CONTRACTS……………………………………………………………………..2 5. SERVICES UNDER LOCAL SERVICE CONTRACTS………………………………………………….………….3 6. EXCEPTIONS FROM THE SCHEME……………………………………………………………………….………..3 7. SCHEME FACILITIES………………………………………………………………………………………………….…..3 8. PLAN FOR CONSULTING ON OPERATION OF THE SCHEME……………………………………………3 ANNEXES TO THE SCHEME………………………………………………………………………………………………………..5 ANNEX 1: SERVICES INCLUDED – ARTICLE 5…………………………………………………………………….………..5 ANNEX 2: SERVICES INCLUDED – ARTICLE 5.2.3………………………………………………………………………..12 ANNEX 3: EXCEPTED SERVICES – ARTICLE 6………………………………………………………………………………15 ANNEX 4: TEMPORARY EXCEPTIONS – ANNEX 3 PARAGRAPHS 1.2 AND 1.3……………………………..16 ANNEX 5: FRANCHISING SCHEME SUB-AREAS…………………………………………………………………………..21

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WHEREAS:

A The Transport Act 2000 (as amended) ("2000 Act") makes provision for a franchising authority to make a franchising scheme covering the whole or any part of its area. The GMCA is a franchising authority as defined in the 2000 Act.

B The GMCA gave notice of its intention to prepare an assessment of a proposed scheme in accordance with sections 123B and section 123C(4) of the 2000 Act on 30 June 2017. Having complied with the process as set out in the Act, the GMCA may determine to make the scheme in accordance with sections 123G and 123H of the 2000 Act.

NOW, therefore, the GMCA, in exercise of the powers conferred on it by sections 123G and 123H of the 2000 Act, and of all other powers enabling it in that behalf, hereby MAKES THE FOLLOWING FRANCHISING SCHEME (the "Scheme"):

1. CITATION AND COMMENCEMENT

1.1. This Scheme may be cited as the Greater Manchester Franchising Scheme for Buses 2020 and is made on 06/03/2020.

1.2. This Scheme shall come into operation on 02/01/2022 and shall remain in operation thereafter unless varied or revoked in accordance with the 2000 Act.

2. INTERPRETATION

2.1. In this Scheme:

2.1.1 "1985 Act" means the Transport Act 1985;

2.1.2 "2000 Act" has the meaning given to it in Recital A;

2.1.3 "Commencement Date" has the meaning ascribed to it in article 1.2;

2.1.4 "Franchising Scheme Area" means the GMCA Area;

2.1.5 “Franchising Scheme Sub-Area A” means the area marked ‘A’ in the map of Annex 5, being part of the Franchising Scheme Area;

2.1.6 “Franchising Scheme Sub-Area B” means the area marked ‘B’ in the map of Annex 5, being part of the Franchising Scheme Area;

2.1.7 “Franchising Scheme Sub-Area C” means the area marked ‘C’ in the map of Annex 5, being part of the Franchising Scheme Area;

2.1.8 "Franchising Scheme Sub-Area" means each of Franchising Scheme Sub-Area A, Franchising Scheme Sub-Area B and Franchising Scheme Sub-Area C;

2.1.9 "GMCA" means the Greater Manchester Combined Authority;

2.1.10 "GMCA Area" means the area consisting of the areas of the metropolitan district councils for the local government areas of Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford and Wigan;

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2.1.11 “Large Franchise Contract” shall mean a Local Service Contract which (together with any contract referred to in article 5.3) has a Peak Vehicle Requirement of no less than 34 vehicles;

2.1.12 “Local Service Contract” has the same meaning as in section 123A(5) of the 2000 Act;

2.1.13 "Local Services" has the same meaning as in section 2 of the 1985 Act;

2.1.14 "Operator" means a person operating a local service, and references to an Operator shall be construed in accordance with section 137(7) of the 1985 Act;

2.1.15 “Peak Vehicle Requirement” means the number of vehicles required to operate the Local Services in accordance with the terms of a Large Franchise Contract and at its highest frequency;

2.1.16 "Scholars' Service" means a Local Service providing transport for pupils to and/or from schools within the Franchising Scheme Area which does not provide transport to the general public;

2.1.17 "TfGM" means Transport for Greater Manchester.

3. THE FRANCHISING SCHEME AREA AND SUB-AREAS

3.1. The GMCA Area is hereby designated as the area to which the Scheme relates1.

3.2. Franchising Scheme Sub-Area A, Franchising Scheme Sub-Area B and Franchising Scheme Sub-Area C are specified areas within the GMCA Area2.

4. ENTRY INTO LOCAL SERVICE CONTRACTS

4.1. The date on which a Local Service Contract to provide a Local Service may first be entered into:3

4.1.1 in respect of the Franchising Scheme Sub-Area A, shall be 02/04/2021;

4.1.2 in respect of the Franchising Scheme Sub-Area B, shall be 25/03/2022; and

4.1.3 in respect of the Franchising Scheme Sub-Area C, shall be 10/03/2023.

4.2. The period that is to expire between the dates set out in article 4.1 and the provision of a Local Service under a Local Service Contract in each such Franchise Scheme Sub-Area shall be a period of 9 months.

1 s123H(2)(a). 2 S123H(3)(a). 3 Section 123H(2)(c).

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5. SERVICES UNDER LOCAL SERVICE CONTRACTS

5.1. Subject to paragraph 2 of this article and to article 6, the Local Services that are appropriate, and are intended, to be provided under Local Service Contracts are those specified in Annex 1 and Annex 2 to this Scheme4.

5.2. Such services do not include:

5.2.1 any Local Service marked * in Annex 1 to the extent that it operates within Franchise Scheme Sub-Area B until immediately before the date on which subsections (2) and (3) of section 123J of the 2000 Act apply to Franchise Scheme Sub-Area B;

5.2.2 any Local Service marked + in Annex 1 to the extent it operates within Franchise Scheme Sub-Area C until immediately before the date on which subsections (2) and (3) of section 123J of the 2000 Act apply to Franchise Scheme Sub-Area C; and

5.2.3 any Local Service listed in Annex 2 to the extent that it serves a school or college located within Franchise Scheme Sub-Area B or Franchise Scheme Sub-Area C until immediately before the date on which subsections (2) and (3) of section 123J of the 2000 Act apply to Franchise Scheme Sub-Area B or Franchise Scheme Sub-Area C respectively.

5.3. The GMCA may agree with a person with whom a Local Service Contract has been made that that person should also provide in conjunction with that service a Local Service referred to in article 5.2 otherwise than under a Local Service Contract.

6. EXCEPTIONS FROM THE SCHEME

6.1. The Local Services excepted from regulation arising because of the Scheme are those listed in Annex 3.

7. SCHEME FACILITIES

7.1. The additional facilities that the GMCA consider appropriate to provide in the GMCA Area are such depots as may facilitate the letting of the Large Franchise Contracts.

8. PLAN FOR CONSULTING ON OPERATION OF THE SCHEME

8.1. The GMCA will consult such organisations being those that appear to the GMCA to be representative of users of Local Services (including, for the avoidance of doubt, Franchise Contract Services), and may consult other organisations and persons, as the GMCA thinks fit.

8.2. The purpose of any consultation undertaken in accordance with this article 8 is to seek the views of the users of Local Services on how well the Scheme is working5. The GMCA will consult in accordance with this article 8 immediately after the expiry of all the Franchise Service Contracts awarded in accordance with article 4.1 and as such other times periodically as the GMCA considers appropriate.

4 s123H(2)(b). 5 Section 123(A)(9).

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8.3. Any consultations carried out in accordance with this article 8 shall last for a period of time as the GMCA thinks fit so as to ensure that those organisations and persons described in article 8.1 have sufficient time to respond.

8.4. The GMCA will make available to the public its response to any consultation carried out in accordance with this article 8.

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ANNEXES TO THE SCHEME

ANNEX 1: SERVICES INCLUDED - ARTICLE 5

General Services

Leigh - Golborne - Wigan Cadishead - intu Trafford Centre - Manchester City Centre Wythenshawe - Northenden - Manchester City Centre Wythenshawe Hospital - Wythenshawe - Manchester City Centre Manchester Airport - Wythenshawe - Manchester City Centre Timperley - Northenden - Manchester City Centre Brookhouse - Eccles - Manchester City Centre Withington - Manchester City Centre Middleton - Moston - Manchester City Centre Alkrington - Moston - Manchester City Centre Middleton - NMGH Circular Higher Blackley - Moston - Manchester City Centre Altrincham - Wythenshawe – Stockport Middleton - Birch Circular Leigh - Boothstown - intu Trafford Centre + Middleton - Boarshaw Circular Middleton - Moorclose Circular Salford Quays - Eccles – Worsley Wigan - Boothstown - intu Trafford Centre + Bury - Whitefield - Manchester City Centre East Didsbury - University - Manchester City Centre West Didsbury - University - Manchester City Centre West Didsbury - Manchester City Centre Cheetham Hill - Moston – Oldham Hyde - Chorlton - intu Trafford Centre Hollinwood - Failsworth - Mandley Park Middleton - NMGH - Manchester City Centre Oldham - Failsworth – Middleton Flixton - Urmston - Manchester City Centre Norden - Middleton - Manchester City Centre Bury - Middleton - Manchester City Centre Rochdale - Middleton - Manchester City Centre East Didsbury - Gorton - Newton Heath + Withington - Gorton - Newton Heath + Reddish - Withington – Wythenshawe intu Trafford Centre – Wythenshawe Greenfield - Oldham - Manchester City Centre Rochdale - Chadderton - Manchester City Centre Rochdale - Shaw - Manchester City Centre Royal Oldham Hospital - Oldham – Limeside Standedge - Uppermill - Oldham – Manchester Langley - Middleton - Manchester City Centre - Manchester Royal Infirmary + Hazel Grove - Stockport - University - Manchester City Centre Hazel Grove - Stockport - Manchester City Centre

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Stockport - Green End - Longsight - Manchester City Centre Wythenshawe – Sale Manchester Airport - Wythenshawe – Altrincham Middleton - Langley Circular Wigan - Highfield Grange Circular Manchester City Centre - Spinningfields Circular intu Trafford Centre – Bolton + Hattersley - Hyde - Manchester City Centre Stockport - Reddish - Manchester City Centre Hyde - Haughton Green - Manchester City Centre Denton - Dane Bank - Manchester City Centre Gee Cross - Denton - Manchester City Centre Gee Cross - Town Lane - Manchester City Centre Ashton - Droylsden - Manchester City Centre Ashton - Droylsden - Clayton - Manchester City Centre Manchester City Centre - Openshaw - Ashton – Stalybridge Manchester City Centre - Stalybridge – Manchester City Centre - Dukinfield – Stalybridge Dukinfield - Audenshaw - Manchester City Centre Ashton - Littlemoss - Manchester City Centre Ashton - Hartshead - Clayton - Manchester City Centre Ashton - Broadoak Circular Hollingworth - Stalybridge – Ashton intu Trafford Centre - Didsbury – Stockport Rochdale - Chadderton - Manchester City Centre intu Trafford Centre - Stretford – Altrincham intu Trafford Centre - Flixton – Altrincham intu Trafford Centre - Chorlton – Stockport intu Trafford Centre - Old Trafford - Manchester City Centre Partington - Flixton - Urmston - Manchester City Centre Partington - Urmston - Stretford - Manchester City Centre Flixton - Stretford - Hulme - Manchester City Centre Leigh - Boothstown - Worsley - Manchester City Centre Sale - Partington Circular Sale - Sale West Circular Sale - Ashton on Mersey Circular Altrincham - Sale - Manchester City Centre Swinton - Salford Shopping City - Manchester City Centre Wythenshawe - Sale – Eccles + Trafford General Hospital - Withington Hospital Trafford General Hospital - Gorse Hill Altrincham - Sale Altrincham - Oldfield Brow circular Altrincham - Hale Moss Circular Altrincham - Warburton circular Altrincham - Timperley circular Altrincham - Bowdon Vale Circular East Didsbury - Northenden - Altrincham - Manchester Airport Little Hulton - Swinton - Salford intu Trafford Centre - Trafford Bar - Manchester City Centre

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Manchester City Centre - Victoria Circular Wigan - Highfield Grange Circular Bolton - intu Trafford Centre + Stockport - Cheadle Hulme Circular Stockport - Cheadle Heath Circular Stanley Green - Cheadle - Stockport Grove Lane - Cheadle Hulme - Stockport Stockport - Offerton Circular Haughton Green - Brinnington - Stockport Stockport - Haughton Green Circular Stockport - Brinnington Circular Denton - Brinngton - Stockport Stockport - Bridge Hall Reddish - Stockport Worsley - Eccles - Manchester City Centre Ashton - Hyde - Stockport Ashton - Smallshaw Circular Ashton - Hurst Cross - Smallshaw Circular Ashton - Denton Circular Ashton - Crowhill Circular Bryn - Leigh - Manchester City Centre Oldham - Stalybridge – Hyde + Broadbottom - Hattersley - Hyde Hyde - Gee Cross Circular Oldham - Lees - Stalybridge – Hyde + Ashton - Denton Circular Gee Cross - Hyde - Ashton Ashton - Haughton Green Circular Ashton - Stalybridge – Carrbrook Ashton - Uppermill – Oldham + Uppermill - Mossley – Ashton + Carrcote - Uppermill – Stalybridge + Denshaw - Uppermill - Stalybridge – Ashton + Denshaw - Uppermill – Greenfield Strines - Marple – Stockport Manchester City Centre - Swinton - Tyldesley Bolton - Little Hulton - Manchester City Centre Stockport - Hazel Grove - Disley Standish - Wigan Stockport - Woodbank Park Circular Wythenshawe Hospital - Cheadle Hulme - Stockport Manchester Airport - Wythenshawe - Stockport Stockport - Woodsmoor Circular Stockport - Hazel Grove Circular Hazel Grove - Woodsmoor - Stockport Mellor - Stepping Hill - Stockport Cheadle Hulme - Stockport Bolton - Farnworth - Manchester City Centre Woodley - Romiley - Bredbury - Stockport Stockport - Marple Circular

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Hyde - Stalybridge – Ashton Gee Cross - Stalybridge – Ashton Logistics North - Walkden - Manchester City Centre Ashton - Hazelhurst Circular Ashton - Smallshaw Circular Limehurst Farm – Ashton Newton Heath - Fitton Hill – Ashton + Ashton - Hazelhurst Circular Wigan - Kitt Green Circular Oldham - Royton Circular Shaw - High Crompton - Rushcroft Circular Oldham - Firwood Park Circular Denshaw - Moorside – Oldham Stalybridge - Oldham – Shaw + Ashton - Oldham – Rochdale + Sale - Northenden - Manchester City Centre Oldham - Higginshaw Circular Middleton - Royton – Oldham Middleton - Chadderton – Oldham Oldham - Less Circular Middleton - Chadderton – Ashton + Ashton – Dukinfield Oldham - Fitton Hill Circular Reddish - East Didsbury - Manchester City Centre Woodford - East Didsbury - Manchester City Centre Stockport - East Didsbury - Manchester City Centre Manchester Airport - Withington - Manchester City Centre Rochdale - Turf Hill – Castleton Richdale - Kirkholt – Castleton Shaw - Turf Hill – Rochdale Stockport - Manchester City Centre Rochdale – Syke Rochdale - Foxholes Circular Norden - Bamford – Rochdale Norden - Cutgate – Rochdale Rochdale - Bagslate – Norden Rochdale – Healey Peppermint Bridge - Newhey – Rochdale Rochdale - Stansfield Circular Littleborough - Hollingworth Lake – Rochdale Littleborough – Rochdale Littleborough – Rochdale Wardle – Rochdale Norden - Bamford - Heywood – Bury Rochdale - Ladyhouse Circular Rochdale - Bamford – Bury Rochdale - Greave - Bamford – Bury Bury – Tottington Bolton - Bury – Rochdale * Bury - Ramsbottom Circular

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Heywood - Fairfield Hospital – Bury Bury - Summerseat – Ramsbottom Bury - Brandlesholme – Ramsbottom Bury – Limefield Bury - Tottington – Bolton * Whitefield - Prestwich – Eccles * Bury – Nangreaves Manchester City Centre - Moston – Oldham Fern Grove – Bury Wigan - Norley Hall Circular East Didsbury - Manchester City Centre - Salford Quays + Bolton Town Centre Circular Farnworth - Bolton - Johnson Fold Bolton - Hawrood Circular Bolton - Ainsworth – Bury * Bolton - Breightmet – Bury * Bury - Farnworth - Royal Bolton Hospital * Bury - Whitefield – Farnworth * Horwich - Westhoughton - Atherton - Leigh Middlebrook - Atherton - Leigh Failsworth - Salford - intu Trafford Centre*+ Little Lever - Royal Bolton Hospital - Blackrod Bolton - Radcliffe – Bury * Bolton - Hall I'th Wood Circular Barrow Bridge - Bolton Salford - Old Trafford - Cheetham Hill *+ Egerton - Tonge Moore - Bolton Oldhams Estate - Bolton Bolton - Astley Bridge – Horrocks Fold Bolton - Bradley Fold Circular Bolton - Astley Bridge Circular Bolton - Tonge Moss Circular Bromley Cross - Bolton Bolton - Little Lever Circular Leigh - Boothstown - Bolton Higher Green - Boothstown - Bolton Highfield - Farnworth - Prestolee Ashton - Hindley - Bolton Bolton - Withins Estate Circular Manchester City Centre - NMGH Circular Sutton Estate - Bolton Bolton - Great Lever Circular Bolton - Markland Hill - Middlebrook Wigan - Horwich - Bolton Wigan - Middlebrook - Bolton Blackrod - Brazley - Bolton Rochdale – Oldham Leigh - Atherton - Bolton Hag Fold - Atherton - Leigh Crankwood - Leigh

Franchising Scheme Document Page 55 FINAL DRAFT – COMMERCIAL IN CONFIDENCE 9

Leigh - Tyldesley - Parsonage Retail Park Circular Leigh - Lowton Circular Leigh - Lowton - Pennington Circular Rushcroft - Oldham - Manchester City Centre Leigh - Pennington - Lowton Circular Leigh - Lowton Common Circular Wigan - Hindley - Castle Hill - Leigh Leigh - Tamar Hindley - Westleigh - Leigh Leigh - Westleigh Leigh - Landside Circular Leigh Infirmary - Leigh Sports Village Wigan - Beech Hill Circular Ashton Heath - Ashton-In-Makerfield - Wigan New Springs - Wigan Brookhouse - Eccles - Manchester City Centre Platt Bridge - Wigan Wigan - Castle Hill Circular Wrightington Hospital - Wigan Wigan - Standish Circular Wigan - Shevington Moor Circular Eccles - Salford Royal Hospital Circular Eccles - Worsley - Clifton Cadishead - Salford Royal Hospital - Manchester City Centre Farnworth - intu Trafford Centre + Atherton - Hag Fold Atherton - Hag Fold - Leigh Leigh - Tyldesley Circular Leigh - New Hall Farm - Tyldesley circular Ellenbrook - Manchester City Centre Rochdale - Kirkholt Circular Beech Hill - Wigan Circular Stockport - Reddish – Ashton Salford Quays - Pendleton - Clifton Wigan - Westhoughton – Bolton Dukinfield – Audenshaw Runway Visitor Park - Manchester Airport Clifton - Salford Quays Pendleton - Seedley Circular Hollinwood - Newton Heath - Manchester City Centre Oldham - Failsworth - Manchester City Centre Swinton - Salford Quays – Stretford Stockport – Denton Bolton - Westhoughton - Wigan Leigh - Hindley - Wigan Derker - Oldham - Manchester City Centre Holts - Oldham - Manchester City Centre Sholver - Oldham - Manchester City Centre Chorlton - Whalley Range - Manchester City Centre Chorlton - Alexandra Park - Manchester City Centre

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Chorlton - Brook's Bar - Manchester City Centre Manchester City Centre - Chorlton – Sale Bolton - Pendlebury - Manchester City Centre Higher Folds - Leigh - Wigan Prestwich – Simister Bury – Radcliffe Bury - Pilsworth - Manchester City Centre Bury - Prestwich - Manchester City Centre NMGH - Prestiwch – Pilsworth Salford - Prestwich – Bury Simister - Higher Broughton - Manchester City Centre Bury - Unsworth - Manchester City Centre Bury - Radcliffe - Manchester City Centre Bury - Holcombe Brook – Ramsbottom Leigh - Tyldesley - Manchester City Centre – MRI + Atherton - Tyldesley - Manchester City Centre – MRI + Boothstown - Mosley Common Circular Burgess Farm - Walkenden Circular Farnworth - Little Hulton - Manchester City Centre intu Trafford Centre - Manchester City Centre Flixton - Davyhulme - Manchester City Centre intu Trafford Centre - Northenden – Stockport Heywood - Middleton - Manchester City Centre Carrcote - Uppermill - Manchester City Centre Hazel Grove - Stockport - Manchester City Centre

ANNEX 2: SERVICES INCLUDED - ARTICLE 5.2.3

Franchising Scheme Document Page 57 FINAL DRAFT – COMMERCIAL IN CONFIDENCE 11

Services to Schools

Abraham Moss Community School Alder Community High School All Saints Catholic College Altrincham College of Arts Altrincham Grammar School for Boys Altrincham Grammar School for Girls Ashton-on-Mersey School Audenshaw School Bedford High School Blessed John Henry Newman College Blessed Thomas Holford Catholic College Blue Coat School Bolton St Catherine’s Academy Bramhall High School Broadoak School Buile Hill Visual Arts College Burnage Academy for Boys Bury Church of England High School Byrchall High School Cansfield High School Canon Slade School Castlebrook High School Cardinal Langley School Cedar Mount Academy Cheadle and Marple Sixth Form College Cheadle Catholic Infants/Juniors Cheadle Hulme High School Chorlton High School Co-operative Academy Failsworth Copley Academy Crompton House School Dean Trust Ardwick Denton Community College Derby High School Droylsden Academy Elton High School Egerton High School Falinge Park High School Fairfield High School for Girls Flixton Girls High School Great Academy Ashton Harper Green High School Harrytown RC High School Hawkley High School Hazel Grove High School Hingldey High School

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Hollingworth Academy Hope Academy Kingsway School Kingway Park High School Ladybridge High School Laurus Cheadle Hulme Levenshulme High School Little Lever High School Longdendale Community Language College Loreto Grammar School Loreto High School Chorlton Lostock College Lowton Church of England High School Manchester Academy Manchester Communications Academy Manchester Creative & Media Academy Manchester Enterprise Academy Central Manchester Enterprise Academy Wythenshawe Manchester Health Academy Manor High School Marple Hall School Matthew Moss High School Mossley Hollins High School Mount St Joseph RC High School Newall Green High School North Chadderton School Oasis Academy Oldham Oulder Hill Community High School Our Lady’s R.C. High School Parrenthorn High School Parrs Wood High School Philips High School Poynton High School Priestnall School Reddish Vale High School Rivington and Blackrod High School Rose Bridge Academy Royton and Crompton School Saddleworth School Sale Grammar School Sale High School Samuel Laycock High School Sharples High School Shevington High School Siddal Moor Sports College Smithills School St Ambrose Barlow RC High School and Sixth Form College St Ambrose College St Anne’s Academy St Anthony’s Catholic College

Franchising Scheme Document Page 59 FINAL DRAFT – COMMERCIAL IN CONFIDENCE 13

St Cuthbert’s RC High School St Damian’s RC Science College St Edmund Arrowsmith Catholic High School St Gabriel’s RC High School St Hugh’s Catholic School St James’ Catholic High School St James’ Church of England School St John Fisher Catholic High School St John Rigby College St Joseph’s RC High School St Mary’s Catholic High School St Matthew’s RC High School St Monica’s RC High School St Paul’s Catholic High School St Patrick’s RC High School and Arts College St Peter’s Catholic High School St Peter’s RC High School St Simon’s Catholic Primary School St Thomas More RC College Standish Community High School Stretford Grammar School Stretford High School Stockport Academy The Barlow RC High School The Co-operative Academy of Manchester The East Manchester Academy The King David High School The Radclyffe School Thornleigh Salesian College Tottington High School Trinity Church of England High School Turton High School & Media Arts College Urmston Grammar School Walkden High School Wardle Academy Waterhead Academy Wellacre Academy Wellington School Westhoughton High School Westleigh High School Whalley Range 11-18 High School Werneth School William Hulme’s Grammar School Winstanley College Woodhey High School Wright Robinson College

ANNEX 3: EXCEPTED SERVICES - ARTICLE 6

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1.1 a Scholars' Service;

1.2 Any Local Service marked # in Annex 4 to the extent that it operates in Franchise Scheme Sub- Area A until immediately before the date on which subsections (2) and (3) of section 123J of the 2000 Act applies to Franchise Scheme Sub-Area B; and

1.3 Any Local Service marked ^ in Annex 4 to the extent that it operates in Franchise Scheme Sub- Area A or Franchise Scheme Sub-Area B until immediately before the date on which subsections (2) and (3) of section 123J of the 2000 Act applies to Franchise Scheme Sub-Area C.

ANNEX 4: TEMPORARY EXCEPTIONS – ANNEX 3 PARAGRAPHS 1.2 AND 1.3

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Wythenshawe - Sale - Stretford – Eccles ^ Oldham - Mossley - Stalybridge – Hyde ^ Uppermill - Mossley - Heyrod – Ashton ^ Carrcote - Uppermill - Stalybridge – Ashton ^ Newton Heath - Fitton Hill – Ashton ^ Middleton - Chadderton - Coppice – Ashton ^ Bolton - Breightmet - Bury - Sudden – Rochdale # Bury - Tottington - Tonge Moor – Bolton #

East Didsbury - Manchester - Salford Quays ^ Bolton – Ainsworth – Walshaw – Bury # Bolton – Brieghtmet – Ainsworth – Walshaw – Bury # Failsworth - NMGH - Salford - intu Trafford Centre ^# Bolton – Little Lever – Radcliffe – Bury # Salford - Old Trafford - Cheetham Hill ^#

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ANNEX 5: FRANCHISING SCHEME SUB-AREAS Page 63 Page

Franchising Scheme Document FINAL DRAFT – COMMERCIAL IN CONFIDENCE 21 This page is intentionally left blank Confidential

Grant Thornton UK LLP

110 Bishopsgate Transport for Greater Manchester London 2 Piccadilly Place EC2N 4AY Manchester M1 3BG T +44 (0)20 7383 5100 F +44 (0)20 7383 4715

FAO Eamonn Boylan (Chief Executive Officer)

26 September 2019

Dear Sirs

Independent Reasonable Assurance Report on Transport for Greater Manchester’s (TfGM) assessment of a proposed franchising scheme

Call Off Contract dated 28 June 2019 for the provision of corporate finance Services by Grant Thornton UK LLP (as “Supplier”) to Transport for Greater Manchester (as “Customer”) pursuant to the Corporate Finance Services Framework Agreement (RM 3719) dated 6 June 2016 between the Minister for the Cabinet Office acting through Crown Commercial Service as the Authority and the Supplier

This Independent Reasonable Assurance Report (the "Report") is made in accordance with the terms of our call off contract dated 28 June 2019 (the "Engagement Letter") (under the Corporate Finance Services Framework Agreement (RM3719)). The purpose is to report to TfGM in connection with its requirement for Grant Thornton UK LLP to review its assessment of a proposed bus franchising scheme (the “Assessment”1) as prepared in accordance with the Transport Act 2000 (as amended by the Bus Services Act 2017 (together the Act)). The Report is prepared to comply with section 123D of the Act and as a result, this Report may not be suitable for any other purpose other than that set out in the Act.

Background In June 2017, the Greater Manchester Combined Authority (GMCA) decided to prepare an assessment of a proposed bus franchising scheme in accordance with the Act. TfGM were instructed to prepare the same on GMCA’s behalf, in accordance with the requirements of the Act and the Franchising Scheme Guidance (the “Guidance”).2

1 The Assessment we have reviewed includes the five case business case and associated supporting papers, other supporting material that underpins the Assessment, the report to the Combined Authority (“CA report 26.9CFA.docx.docx”) received on 26 September and the clarification responses provided to us by TfGM. 2 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/694428/bus- services-act-2017-franchising-guidance.pdf

Chartered Accountants. Grant Thornton UK LLP is a limited liability partnership registered in England and Wales: No.OC307742. grantthornton.co.uk Registered office: 30 Finsbury Square, London EC2A 1AG. A list of members is available from our registered office. Grant Thornton UK LLP is authorised and regulated by the Financial Conduct Authority. Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwidePage partnership. 65 Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. Please see grantthornton.co.uk for further details.

Confidential

In June 2019, TfGM’s Assessment was completed and approved by the GMCA. The GMCA also decided to proceed to the next step in the Act by instructing TfGM to obtain, on its behalf, a report from an independent audit organisation. Following that instruction, Grant Thornton UK LLP (Grant Thornton, we or us) was instructed to prepare the Report.

Responsibilities of TfGM Per our Engagement Letter, TfGM’s responsibilities in relation to this Report included but were not limited to: • preparing the Assessment of a proposed bus franchising scheme • providing us with any such information as may be reasonably requested by us in connection with the preparation of this Report • responding to any queries that may be raised by us and ensuring that there were appropriate resources available to respond to such queries • any such other matters as may be agreed by the parties and set out in the implementation plan in our Engagement Letter (the “Implementation Plan”). TfGM have provided us with a management letter of representation (dated 25 September 2019) confirming they have provided us with the information they believe we require in relation to the requirements of the Act and the Guidance.

Our responsibilities Our responsibility is to provide a report and express an opinion in relation to the following areas required by the Act: • whether the information relied on by TfGM in considering the matters referred to in section 123B(3)(d) of the Act (the affordability of the scheme) or section 123B(3)(e) of the Act (the value for money of the proposed scheme) is of sufficient quality • whether the analysis of that information in the Assessment is of sufficient quality • whether TfGM had due regard to the Guidance issued under section 123B of the Act in preparing the Assessment. As per paragraph 1.87 of the Guidance, our role is not to report or pass judgement on the decisions taken by TfGM or the outcomes of the assessment – our role is purely to consider the process that has been followed, the accuracy and robustness of the information that has been used in the analysis, and that the mechanics of the process have been carried out correctly. Paragraph 1.85 requires us to take into account the quality and timeliness of any information received from bus operators and the following criteria: • whether the information used comes from recognised sources • whether the information used is comprehensive or selectively supports the arguments in favour of, or against, any particular option • whether the information used is relevant and up to date • whether the assumptions recorded as part of the Assessment are supported by recognised sources • the mathematical and modelling accuracy of the analytical methods used to calculate the impacts of the options. We conducted our work in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised), “Assurance engagements other than audits and reviews of historical financial information”. Applying ISAE 3000 (Revised) to this engagement, requires us to conclude whether the Assessment has been prepared, in all material respects, in accordance with the requirements of 123D of the Act.

Page 66 Grant Thornton UK LLP. 2 Confidential

For the avoidance of doubt, our evaluation of the Assessment does not constitute a statutory audit under the Local Audit and Accountability Act 2014 nor is our evaluation of the Assessment conducted in accordance with auditing standards issued by the Financial Reporting Council. We applied International Standard on Quality Control 1 to our work and accordingly maintained a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Our approach to meeting the requirements of 123D of the Act was as follows: • We have reviewed all the documentation provided by TfGM. • Our work was conducted in line with the Act and the Guidance under the following workstreams:

 Process – in line with paragraph 1.87 of the Guidance, our work considered how the Assessment has been prepared and whether TfGM followed the requirements of the Act and the Guidance.

 Assessment review – this element of the work evaluated the quality of the analysis undertaken, the quality of the information used, whether the analysis of that information was of sufficient quality and whether TfGM had due regard to the Guidance.

 Base data including bus operator data – this element of the work evaluated the quality and timeliness of the information used to underpin the Assessment of whether the analysis of that information was of sufficient quality and whether TfGM had due regard to the Guidance.

 In relation to the Financial Model, Demand and Revenue Models, Cost-Benefit Analysis Models and Wider Economic Benefits Analysis Models (together “the Models”)3 we have undertaken: . Calculation reviews of the Models – this element of the work evaluated the quality of the analysis undertaken and the arithmetical accuracy of the analytical methods used . Technical/Methodological/Analytical reviews of the Models – in line with the Guidance, this element of the work evaluated the quality of the analysis undertaken and the quality of the information used Section 123B (3) (d) and (e) of the Act requires the Assessment to include consideration of whether the proposed scheme is affordable and represents value for money. In reviewing the Assessment we set a threshold for materiality at a level where a finding is considered material if it demonstrates the proposed scheme would no longer be affordable or represent value for money and would not be consistent with Section 123B (3) (d) and (e) of the Act. During our work we identified and collated a number of observations in relation to the Assessment which we have reported to TfGM. None of these issues were considered to be sufficiently material for us to issue a modified conclusion.

Inherent limitations The procedures we have performed do not constitute an examination made in accordance with International Standards on Auditing (UK). Our Report relates only to the Assessment and does not

3 The Models are spreadsheets and other electronic files provided to us by TfGM and the titles referenced are consistent with those used in the Assessment.

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extend to any financial statements of TfGM nor the statutory financial statements of any of the bus operators on which the Assessment is based. The procedures we have undertaken have not considered the whole internal control system in place at TfGM nor have we tested elements of the internal control system other than those used for the preparation of the Assessment which we considered necessary for us to be able to provide an opinion on the three matters required under the Act. The process of modelling on which the Assessment is based, necessarily involves a simplified representation of the real-world, using a set of data and input assumptions and calculations to provide forecasts that inform decision making. As a result, there is inherent uncertainty over any forecasts or projections calculated by a model as these are based upon a series of assumptions from which future actual outcomes may differ. This Report has been prepared by Grant Thornton UK LLP for our client TfGM in line with the terms and conditions of our Engagement Letter dated 28 June 2019 and its associated Implementation Plan dated 27 August 2019. For the avoidance of doubt, the terms and conditions of that engagement, including but not limited to the parties’ respective liability, shall apply.

Conclusion In our opinion, in all material respects:

 the information relied on by TfGM in considering the matters referred to in section 123B(3)(d) of the Act (the affordability of the scheme) or section 123B(3)(e) of the Act (the value for money of the proposed scheme) is of sufficient quality

 the analysis of that information in the Assessment is of sufficient quality  TfGM had due regard to the Guidance issued under section 123B of the Act in preparing the Assessment.

Use of our report This Report is made solely to TfGM, as a body, in accordance with the terms of our Engagement Letter. Our work has been undertaken so that we could prepare a report on the Assessment, which includes providing an opinion on the matters required under the Act. We acknowledge that both TfGM and the GMCA (which is bound by terms signed by TfGM) may rely on the contents of the Report and that the Report may be used by both TfGM and GMCA in accordance with the provisions of the Act. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than to TfGM and GMCA, as a body, for our work, for this report, or for the conclusions we have formed.

Grant Thornton UK LLP Chartered Accountants London 26 September 2019

Page 68 Grant Thornton UK LLP. 4 Confidential

Grant Thornton UK LLP

110 Bishopsgate Transport for Greater Manchester London 2 Piccadilly Place EC2N 4AY Manchester M1 3BG T +44 (0)20 7383 5100 F +44 (0)20 7383 4715

FAO Eamonn Boylan (Chief Executive Officer)

26 September 2019

Dear Sirs

Observations on Transport for Greater Manchester’s (TfGM) assessment of a proposed franchising scheme This Observations Report (the "Report") is made in accordance with the terms of our call off contract with you dated 28 June 2019 (the "Engagement Letter") (under the Corporate Finance Services Framework Agreement (RM3719)). The purpose is to report to TfGM in connection with its requirement for Grant Thornton UK LLP to review its assessment of a proposed bus franchising scheme (the “Assessment” 1) as prepared in accordance with the Transport Act 2000 (as amended by the Bus Services Act 2017 (together the Act)). The Report is prepared to document the observations from our review which we consider should be raised with TfGM but were not material enough to lead us to a modified conclusion. We have separately provided our conclusion per the Act (our “Independent Reasonable Assurance Report” dated 26 September 2019). This Report should be read in conjunction with our Independent Reasonable Assurance Report.

Background In June 2017, the Greater Manchester Combined Authority (GMCA) decided to prepare an assessment of a proposed bus franchising scheme in accordance with the Act. TfGM were instructed to prepare the same (the work prepared by TfGM is referred to hereafter as “the Assessment”) on GMCA’s behalf, in accordance with the requirements of the Act and the Franchising Scheme Guidance (the “Guidance”).2 In June 2019, TfGM’s Assessment was completed and approved by the GMCA. The GMCA also decided to proceed to the next step in the Act by instructing TfGM to obtain, on its behalf, a report from an independent audit organisation. Following that instruction, Grant Thornton UK LLP (Grant Thornton, we or us) was instructed to prepare the Independent Reasonable Assurance Report. This Report should be read in conjunction with our Independent Reasonable Assurance Report.

1 The Assessment we have reviewed includes the five case business case and associated supporting papers, other supporting material that underpins the Assessment, the report to the Combined Authority (“CA report 26.9CFA.docx.docx”) received on 26 September and the clarification responses provided to us by TfGM. 2 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/694428/bus- services-act-2017-franchising-guidance.pdf

Chartered Accountants. Grant Thornton UK LLP is a limited liability partnership registered in England and Wales: No.OC307742. grantthornton.co.uk Registered office: 30 Finsbury Square, London EC2A 1AG. A list of members is available from our registered office. Grant Thornton UK LLP is authorised and regulated by the Financial Conduct Authority. Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwidePage partnership. 69 Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. Please see grantthornton.co.uk for further details.

Confidential

Introduction Our responsibility under the Act is to provide a report and express an opinion in relation to the following areas required by the Act: • whether the information relied on by TfGM in considering the matters referred to in section 123B(3)(d) of the Act (the affordability of the scheme) or section 123B(3)(e) of the Act (the value for money of the proposed scheme) is of sufficient quality • whether the analysis of that information in the Assessment is of sufficient quality • whether TfGM had due regard to the Guidance issued under section 123B of the Act in preparing the Assessment. As per paragraph 1.87 of the Guidance, our role is not to report or pass judgement on the decisions taken by TfGM or the outcomes of the assessment – our role is purely to consider the process that has been followed, the accuracy and robustness of the information that has been used in the analysis, and that the mechanics of the process have been carried out correctly. Paragraph 1.85 requires us to take into account the quality and timeliness of any information received from bus operators and the following criteria:

 whether the information used comes from recognised sources  whether the information used is comprehensive or selectively supports the arguments in favour of, or against, any particular option

 whether the information used is relevant and up to date  whether the assumptions recorded as part of the Assessment are supported by recognised sources

 the mathematical and modelling accuracy of the analytical methods used to calculate the impacts of the options. Our Independent Reasonable Assurance Report documents our conclusions on the Assessment. This notwithstanding, we believe that TfGM should share the observations set out in this Report, which we have discussed with TfGM, in its documentation to be provided to the Greater Manchester Combined Authority and as part of its consultation process.

Observations Assessment at Outline Business Case Level We note that within section 1.3 of the Assessment that TfGM has referred to the HM Treasury guidance on the development of business cases, known as the “Green Book”.3 Section 1.3 highlights that the Guidance recommends that the Assessment should be carried out to a level of detail that is equivalent to that in an ‘Outline Business Case’ or (“OBC”). Separate to the Green Book, HM Treasury guidance on producing five-case business cases sets out the different stages and expectations at each stage.4 In general, an OBC should be substantially, but not completely developed to enable a decision maker to decide on an option to be pursued and for work to commence to put that option into effect. The business case should be a live document that continues to develop into a ‘Full Business Case’ (“FBC”) that would contain definitive arrangements and final financial figures, usually following a procurement exercise. It is important to recognise that, the business case guidance expects that, at the OBC stage, the detailed proposals will not be fully complete. Our review of the Assessment has therefore considered the requirements of an OBC and the level of completion expected of the Assessment in that context. We also note that there are no explicit requirements for an FBC to be developed to meet the requirements of the Act and the Guidance.

3 https://www.gov.uk/government/publications/the-green-book-appraisal-and-evaluation-in-central-governent 4 Guide to developing the project business case: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/749086/Project_Bu siness_Case_2018.pdf

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The quantification of soft benefits Over the course of our review we have discussed with TfGM a number of issues pertaining to the soft benefits relating to both the Partnership and Franchising options. The most significant of these issues affects the Franchising option alone. A substantial amount (£102m in Present Value Benefits) of the economic benefits of the Franchising option are derived from the quantified benefits resulting from the unified branding of bus services. Although we do not dispute that unified branding could generate economic benefits, the evidence was based upon data derived over 20 years ago (although we do acknowledge that the DfT republished this evidence without caveat in a 2009 AECOM report into soft measures in the bus market5). Furthermore, the source data does not appear to be directly relevant as this was based upon a study into branding benefits of a Hail and Ride service in London in 1996 (as documented in a TRL report from 2004).6 TfGM has stated that it believes that the valuation of a unified brand is reasonable and appropriate. TfGM has advised that it considers this valuation to be conservative. Before implementation of franchising (subject to Combined Authority and Mayoral decisions) then this valuation, along with other content in the Assessment, would be refined. We understand that TfGM had previously attempted to develop more recent and directly relevant supporting material by commissioning research that would derive a local “brand” value. However, this research was discounted because TfGM felt the definition of brand was narrowly drawn and was not fit for purpose.7 In addition, the research was focussed on current users rather than a wider population. TfGM has stated that its understanding of the value of unifying the bus system has evolved since the research was commissioned and completed in 2016 and that the research ignored the benefits that would arise in the following areas:

 Simplicity and ease of use  Trust and confidence resulting from greater public accountability  Place making value for Greater Manchester of a single bus brand We do not dispute that unified branding could generate economic benefits. In order that TfGM can be more certain of the economic and financial benefits as it develops the detail of the franchising proposition, TfGM intends to commission a new study to further examine the above elements. We note that from our own experience of working on similar assignments in other sectors it is not uncommon to acknowledge the benefit that can be realised with a strong public sector brand. Examples include:

 the ScotRail rail franchise where Scottish Government believes its strong public sector brand benefits the franchise and creates economic and financial benefits;

 the DfT has accepted in rail franchising that a strong brand can generate increased financial (and therefore economic) value;

 there are several instances where public sector energy companies have a brand more closely associated with integrity and trust and that is a foundation that underpins public sector investment in these businesses. Whilst the above are examples where a strong brand can generate benefits, we are not aware of any specific case where the value has been explicitly calculated. It should also be recognised that it might be appropriate to acknowledge that some passenger value might be attributable to the bus operator brands that the private sector companies have built up over many years in Manchester. Because this value is inherent to the Assessment’s reference case,8 any value associated with the Franchising option’s unified brand needs to be quantified net of this value.

5 https://cambridge.blob.core.windows.net/public/ldf/coredocs/RD-T-050.pdf 6 https://trl.co.uk/sites/default/files/TRL593%20-%20The%20Demand%20for%20Public%20Transport.pdf 7 Brand was focused on a single livery to paint buses rather than the various facets of a unified brand, such as through a single customer contact centre, information, standards and performance and the network being presented as a whole. 8 The reference case is TfGM’s forecast of the bus market assuming no partnership or franchising interventions

Page 71 Grant Thornton UK LLP. 3 Confidential

In seeking to clarify the basis of the calculation of the economic benefits associated with branding TfGM has highlighted that whilst it accepts that there is uncertainty in the calculation of the branding benefits it has mitigated this risk by being more prudent in other areas. Specifically, it has not included any economic benefits associated with the simplification of fares or broader changes to bus services. It could be expected that the simplification of fares could deliver additional benefits that have not been included within the analysis and therefore an element of prudence has been included within its figures. In concluding on this issue, we note that if all of the branding benefits are removed from the Assessment, the Net Present Value of the Franchising option still exceeds that of the Partnership options, albeit it is reduced to a level which brings the options closer together. In that context, the relative performance of the options becomes more sensitive to other areas of the soft benefits. Nevertheless, because the impact would not change the ranking of the options, the impact of uncertainty over the branding benefits was not viewed as being a qualification to our opinion. However, it is sufficient for us to raise as an observation in this Report.

Sensitivity Analysis We are aware that TfGM has run a number of standalone sensitivities which show the first order impacts of individual downside scenarios, ie before any potential mitigation has taken place. It is normal to also set out the impact of the mitigations, however we note that these are only incorporated to a limited extent in the Assessment. We note, however, that the report to the Combined Authority explicitly sets out the options available to it to address these downside scenarios and has included analysis on the operational and financial levers available to it in order to respond to downside sensitivities. It is clear that these options provide significant flexibility to manage downsides over the life of the scheme. Of utmost importance is that these options have been included in the report to the Combined Authority so that it is fully aware of some of the measures that may be needed under certain downside scenarios. For example, the ability to adjust network size in response to any shocks and the expected long-term decline in demand is one of the responses that could be adopted under the Franchising option. It is noted that many of the economic case sensitivity tests do not reflect the network size adjustment in either the reference or option cases. There are a number of areas where we feel additional sensitivities could have been modelled:

 Should the network change processes be less effective under the Franchising option than how this is modelled in the Assessment, this could lead to additional financial cost, or the risk of crowding disbenefits for passengers.

 An assessment of a longer appraisal period than 30 years has been run but the Assessment did not incorporate a sensitivity which was for a shorter period than 30 years It is often desirable, although not essential, to incorporate combined downside sensitivities and the Green Book recommends “switching-value” or breakeven analysis to be calculated. We note that these have not been undertaken. This is in part due to the fact that the sensitivities applied would likely impact on all options to a similar degree and therefore it would be difficult to run credible scenarios that would only apply to one case over another. We have therefore only included this as an observation and not a qualification of our opinion.

Funding and Affordability In relation to the affordability of the proposals, the Guidance (paragraph 1.62) suggests that an annual assessment of the budget available to GMCA is provided. TfGM has stated that it believes it has addressed the requirement in this area, however, our interpretation of the Guidance is that an annual breakdown of funding sources should be provided in either graphical or tabular format for each “relevant year” rather than just relying on the statements made in the Assessment. TfGM has included additional financial analysis within the report to the Combined Authority which meets our understanding of the requirements set out above. We have reviewed this paper and are satisfied that it demonstrates that senior leaders have been requested to sign up to the profile and financial commitments required in the Franchising base case for the transition period to 31 March 2025. Beyond 2025, there is only an outline

Page 72 Grant Thornton UK LLP. 4 Confidential

description of possible mechanisms for the forecast financial requirements to be met at that time. We note that the long-term annual commitment of funds would be unusual in Public Sector budgeting, and therefore it is not unreasonable to assume that the mechanisms in place to manage financial variability will continue beyond the transition period.

Timeliness of the information We note that the bus operator information used as the basis of the analysis is sourced from a 2016/17 base year. Whilst more recent information is now available, we are satisfied that TfGM has acted reasonably in using 2016/17 data given the constraints it faced in collating the information.

Use of our report This Report is made solely to TfGM, as a body, in accordance with the terms of our Engagement Letter. Our work has been undertaken so that we could prepare a report on the Assessment, which includes providing an opinion on the matters required under the Act. We acknowledge that both TfGM and the GMCA (which is bound by terms signed by TfGM) may rely on the contents of the Report and that the Report may be used by both TfGM and GMCA in accordance with the provisions of the Act. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than to TfGM and GMCA, as a body, for our work, for this report, or for the conclusions we have formed.

Grant Thornton UK LLP Chartered Accountants London 26 September 2019

Page 73 Grant Thornton UK LLP. 5 This page is intentionally left blank Audit Observation Response

TfGM has provided a response to four of the observations in the Audit observations letter. The four observations are the Brand quantification of soft benefits, Sensitivity analysis, Funding and affordability and Timeliness of Information.

Soft Benefits – Unified Brand

1.1 The auditor notes, that over the course of the audit, TfGM had a number of discussions relating to the soft benefits, including benefits derived from unified branding of bus services. Whilst the auditor does not dispute that unified branding could generate economic benefits, the auditor notes the evidence was based on data derived over 20 years ago and that the source data does not appear to be directly relevant, as it was based upon a study into branding benefits of Hail and Ride. TfGM was aware of this and applied the brand valuation because a) it was derived from a recognised central government transport source b) as acknowledged in the audit observation it was republished by DfT in 2009 without caveat and c) it is not uncommon in appraisals to make use of studies of a range of ages where they represent the most relevant research in a particular area. In addition to this, as noted in the audit observations in order that TfGM can be more certain of the economic and financial benefits as it develops the detail of the franchising proposition, TfGM intends to commission a new study to further examine unified brand.

1.2 TfGM believe that the valuation of unified brand is reasonable and appropriate in the Assessment. This is because the valuation is considered conservative as many of the benefit streams expected to flow from unification were not included in the monetised value. TfGM believe the unification of the GM Bus network under a single unified brand is a fundamental component of the franchising scheme and that it will have beneficial impacts in the following areas:

 Passengers will benefit from greater simplicity and ease of use of the bus system;  Passengers will feel greater trust and confidence that results from greater public accountability for decision making; and  There will be a place making benefit for GM associated with the creation of a single bus brand.

1.3 As noted in the audit observation, if all branding benefits were removed from the Assessment, the Net Present Value of the Franchising option still exceeds that of the Partnership option.

Page 75

Sensitivities

Sensitivities – mitigations and downside

1.4 As noted in the report to the GMCA, the Assessment sets out the risks to GMCA of the proposed Franchising Scheme in that it takes on the risk that income, particularly farebox revenues, is sufficient to pay for franchised services (Strategic Case Section 8.4; Commercial Case Section 24; Financial Case Section 42.1 and 42.4.7). The financial forecasts include a quantified allowance for specific risks that accompany the Franchising Scheme (Section 42.4), and there are sensitivities presented in the Economic and Financial cases showing how the forecast outcomes would be different if key assumptions and trends varied – for instance ‘exogenous’ assumptions in Greater Manchester population forecasts or car ownership forecasts and franchising ‘scheme specific’ assumptions such as the assumed profit margin required by franchised operators (Sections 15.5 and 42.7).

1.5 Variations in some of the long-term trends tested in the Financial Case sensitivities could have significant effects on the bus network over the period to 2051 and, as noted, some of these factors are ‘exogenous’ whereby the GMCA would have limited influence or control of these trends.

1.6 TfGM explains the mitigations available to the GMCA in the Assessment Conclusion at sections 64.1.5 - 64.1.7. TfGM provided additional information to the Auditor through clarification on the ‘levers’ and mitigating responses that would be available to GMCA in the event that a ‘downside’ scenario materialised. GMCA should be fully aware of the mitigating responses when considering the scheme.

1.7 The mitigating responses would be both operational – through reducing the size of the network and / or increasing fares – and financial by allocating more funding to support services. Therefore a ‘downside’ scenario would necessitate prioritisation decisions to be made by GMCA, in line with its public accountability and control of key policy decisions under the proposed franchising scheme, around the level of services, fares and funding in order to achieve a balanced budget. Whilst the financial pressures on the bus market would be likely to be similar in different market scenarios, if the Franchising Scheme were not implemented, these risks and decisions would to a large extent remain with current operators.

Page 76 1.8 The auditor further noted that many of the sensitivity tests do not reflect a network size adjustment in either the reference or option cases. The reason for this was because there are a number of different prioritisation approaches that GMCA could take to mitigating a downside scenario as set out in the paragraph above, and network reduction might not be the chosen approach. The results presented in the Economic case show that the sensitives, prior to undertaking mitigating actions, would not change the comparison between the options in value for money terms. The results presented in the Financial Case show what the cost impact would be, prior to undertaking mitigating actions, to GMCA over the appraisal period under franchising. As noted the GMCA could undertake mitigating actions as set out in the previous paragraph.

Sensitivities - additional sensitivities

1.9 The auditor notes two additional areas of sensitivity testing that could have been reported in the Assessment – whether a network change process would be less ‘efficient’ under Franchising than it is in the current market structure, and the overall length of the appraisal period.

1.10 The sensitivity testing could assess the impact of a less fluid contract change regime than envisaged. This would have a greater effect in the scenario of needing to make reductions to the network than taking advantage of new opportunities and increasing the network. TfGM believe the sensitivity test would not be informative for decision makers because it is not clear what the reasons would be for such an effect and if it were to exist, what the extent would be likely to be (in order to calibrate a meaningful sensitivity test). TfGM have considered the key factors involved in a network change process and concluded that a) the contract change mechanism, assumed within the assessment is deliverable b) the approach to contract change is , common to other similar franchise contracts both in the UK and internationally, thus validating the approach being adopted c) TfGM is satisfied it has sufficient information on how costs would change with network reductions. On the upside, it could also be the case that an authority looking at the network as a whole could make changes more efficiently (i.e. in a less damaging fashion in terms of overall patronage) but a sensitivity was similarly not undertaken on this. This was because it is difficult to decide the scale of such an effect to define a credible test. TfGM will maintain the assumption regarding the efficiency of the network change process under close review during any subsequent planning activities, including finalisation of network change processes and franchise contracts, to ensure it remains valid.

Page 77 1.11 The auditor noted that the Assessment includes a sensitivity test for a longer appraisal period than 30 years but did not incorporate a sensitivity which was for a shorter period than 30 years and suggested this impact could have been tested.

1.12 TfGM did not undertake this sensitivity test as a) the appraisal period was already considerably shorter than the 60 years usually adopted in WebTAG transport appraisals b) franchising has been in place for more than 30 years in London and in other major cities where it has been introduced and c) it did not believe a 15 year market change was a valid sensitivity as a market change would be i) enduring (as set out in the Assessment at 13.1.5) and ii) the sensitivity would not change the conclusions of the economic case.

1.13 Nonetheless, in view of the auditor’s observation, TfGM undertook this sensitivity test as part of audit clarifications and shared the results with the auditor. The results indicate that whilst the Net Present Value and Benefit Cost Ratio of the proposed franchising scheme are reduced (due to the shorter period to accrue benefits), the Value for Money rating and conclusions of the economic case remain unaltered.

Sensitivities – combined downside and ‘switching value’ analysis

1.14 The auditor also raises the point that in their view it is often desirable, although not essential, to undertake ‘switching value’ and combined downside scenarios in a conventional business case analysis. A switching value would illustrate what assumption values would need to be in order for the preference or ranking of options to ‘switch’. Combined downside scenarios would combine together a number of the individual downside scenarios. TfGM’s view, which is also acknowledged by the auditor, is this is a) not mandated by Green Book or other guidance and ‘adding up’ a set of downside sensitivities is not general practice in Green Book business cases in general or transport specific business cases b) some of the sensitivities are likely to be negatively correlated (e.g. in this case an increase in walking and cycling and an increase in use of cars for these journeys); and c) its applicability and the value of the output would be limited as many of the sensitivities applied would likely impact all options to a similar degree.

Funding

1.15 The observation report includes reference to a specific point on the auditor’s interpretation of the Financial Case Guidance. The auditor has interpreted the Guidance to mean that an annual breakdown of funding sources (or ‘budget available’ to the GMCA) should be provided in either graphical or tabular

Page 78 format for each ‘relevant year’, in particular where additional funding is required over the proposed transition period.

1.16 TfGM included in the Financial Case of the Assessment the additional funding requirement and associated annual profile of this requirement over the transition period and set out a range of credible funding sources which, in aggregate, exceed the additional funding requirement to implement the proposed scheme over the proposed transition period. TfGM considered this information to be sufficient to give consideration to how the GMCA could afford to make and operate the proposed franchising scheme.

1.17 In response to the auditor’s observation however, TfGM has subsequently provided a more detailed profile of funding and the GMCA report sets out the preferred funding scenario for the GMCA to approve (section 5 of the GMCA report) for the purposes of consulting upon the proposed franchising scheme. The preferred funding scenario includes an annual profile of funds which, subject to GMCA’s approval, meets the auditor’s interpretation of this point.

Timeliness of Information

1.18 The auditor observes the timeliness of information used as the basis of the analysis and that it is sourced from 2016/17. The auditor acknowledges more recent information is now available and is satisfied that TfGM has acted reasonably in using 2016/17 data given constraints in collating information from a number of different sources, including information provided by Operators.

1.19 It should be noted that this observation refers to the base year (2016/17) of the models used and the associated data inputs for this base year period. Where appropriate, TfGM have used more up to date information to ensure that previous assumptions still hold. For instance, the quantum of network benefits was reduced because of ongoing changes to the network, using information available from 2019, and forecasting this change into the future.

Page 79 This page is intentionally left blank DRAFT EQIA ON THE PROPOSED CONSULTATION EXERCISE

Question 1 Is this a new or existing activity?

New

Question 2 What is the main aim and purpose of the activity?

The activity consists of a public consultation on the Greater Manchester Combined Authority’s (GMCA) proposed franchising scheme, which is set out and considered in an assessment prepared by TfGM on behalf of the GMCA.

The overall aim of the activity is to undertake a consultation that meets the requirements of section 123E of the Transport Act 2000 (as amended by the Bus Services Act 2017) (the Act). This would be done by obtaining the views of a wide range of stakeholders (some of whom the GMCA are required to consult by the Act) on its proposal.

An Equality Impact Analysis of the proposed franchising scheme (distinct from the present document) has been produced and will form part of the subject matter of the consultation.

Question 3 List the main elements of the activity. (for strategies list the main policy areas):

 Publication – the Act requires the GMCA to publish various materials in undertaking a consultation. This would include a consultation document, the assessment, an auditor’s report and a notice of the proposed scheme. These materials would be published online and hard copies of the same would be available in various locations across GM.  Communication – information messages giving details of the consultation via different forms of media.  Stakeholder engagement – contact and engagement with a variety of stakeholders as part of the consultation process.  Consultation – various activities to give people across GM the opportunity to have their say on the proposals.  Deliberative research – undertaking an additional activity to arrange for focus groups to consider the proposals.

Question 4 If this is a new/proposed activity or a change to an existing activity please explain why the proposal being made for what reason?

On 30 June 2017, the GMCA decided to use the powers available in the Act to prepare an assessment of a proposed franchising scheme, which was completed and subsequently approved by the GMCA on 28 June 2019. Subject to the GMCA obtaining a report from an independent audit organisation on its assessment and subject to the GMCA wishing to proceed with the proposed scheme upon consideration of that audit report, the next step would be for the GMCA to undertake a consultation. It is therefore proposed that subject to the above, TfGM would undertake a consultation on its proposed franchising scheme on behalf of the GMCA. This would be a new activity.

Page 1 of 11 Page 81

Question 5 What outcomes does the activity aim to achieve?

 To present the proposal and other required materials to the widest range of people, including those persons GMCA are required to consult by the Act across GM;  That all stakeholders are provided with an opportunity to engage with the proposals and respond to the consultation;  That all responses will be taken into account when reporting on the results and outcome of the consultation; and  That the GMCA and the Mayor of Greater Manchester are presented with the results and outcome of the consultation as may be required under the Act.

Question 6 Who are, or will be, the main beneficiaries of the activity? Please tick one or more of the following

Travelling public - Yes TfGM staff - Partners including Operators - Yes Suppliers - Yes Others - please specify – The main beneficiaries of the consultation are the same as those who are anticipated to benefit from the proposed franchising scheme, since the consultation will give them the opportunity to understand, comment on and therefore potentially influence the proposed scheme. Those beneficiaries are: the travelling public and Greater Manchester residents more generally; existing and potential Greater Manchester businesses; and existing and potential Greater Manchester bus operators / suppliers / employees.

Question 7 Do you need to consult with people who might be affected by it directly or indirectly? Please justify your response Plan to consult - Who do you plan to consult and when?

No. TfGM has extensive experience of consultations and of the measures needed to accommodate groups with protected characteristics. ___

Preamble to response to Question 8

Consultation is inherently positive – it is unlikely that inviting someone to comment on a proposition will have adverse effects on them. It is possible that members of some groups with protected characteristics are at a higher risk than the general population of being unaware of the consultation, of not being able to understand it or of being unable to effectively communicate their views. Where this is the case, measures to ameliorate these risks are noted under Question 8.

By way of context for Question 8, the following actions, of relevance to many of the protected characteristic groups, will be undertaken:

Page 2 of 11 Page 82  the consultation document will be written in plain English and a plain English review of the summary will be undertaken before its publication;  the consultation document will be augmented with additional explanatory and illustrative material, including appropriate visual material;  printed consultation document summaries and response forms will be made available in accordance with TfGM’s working practices on inclusive communication. This will include copies being made available in public buildings across GM, in relevant neighbouring authority areas and through public information stands;  audio and large print versions of the consultation document will be available upon request;  TfGM will be providing information stands, public drop-in events and a telephone helpline for those who wish to talk to us face-to-face, including those who may be unable to read our written material or to respond via our response channels, for example because of a disability;  public events organised by TfGM will take place in fully accessible venues.

A number of response channels will be provided:

 respondents will be able to use the online consultation web address, where questions can be answered online or downloaded;  it will be possible to scan and email hard copies of the response form or return it to a freepost address;  anyone who cannot respond via the channels above or wishes to obtain a different format of the consultation will be able to email or phone the consultation team to discuss their individual requirements; and  there will also be a shorter version of the questionnaire for people to complete.

A dedicated language line will also be set up to assist people who might require it.

In addition, a market research company has been engaged to carry out independent deliberative research (focus groups and workshops) to supplement responses submitted as a result of to the consultation material and associated publicity. A cross-section of the population will be recruited, and this will include people from groups with protected characteristics.

Question 8 Having due regard for equality duty involves:

Removing or minimising disadvantages suffered by people due to their protected characteristics;

Taking steps to meet the needs of people with certain protected characteristics where these are different from the needs of other people; Encourage people with certain protected characteristics to participate in public life or in other activities where their participation is disproportionately low. Please complete the table below and give reasons, evidence and comment, where appropriate, to support your judgement(s).

Use the table below to record where you think that the activity could have a positive impact on any of the target groups or contribute to promoting equality, equal opportunities or

Page 3 of 11 Page 83 improving relations within equality target groups. Use the table below to record where you think that the activity could have an adverse impact on any of the equality target groups i.e. it could disadvantage them and impact is high. Use the last column in the table below to give reason/comments/evidence where appropriate to support your judgement

Age Target Group Positive Adverse Comment/Evidence Children and Young Medium The consultation materials will be written People (aged 19 and in plain English. under) The consultation document will be augmented with additional explanatory and illustrative material, including appropriate visual material.

Older People (aged 60 Medium According to recent research from and over) Ofcom, a relatively high proportion of people aged over 65 do not use the internet: 33% of 64-74-year-olds and 48% of those aged 75 and over. (Ofcom, 2019, Adults: Media use and attitudes report 2019, p19.)

Printed consultation documents, summaries and response forms will be made available in accordance with TfGM’s and GMCA’s working practices on inclusive communication. This will include copies being made available in public buildings across GM, in relevant neighbouring authority areas and through public information stands.

Disability Target Group Positive Adverse Comment/Evidence People with physical Medium Public events organised by TfGM will impairments (Includes take place in accessible venues. mobility, co-ordination, lifting and carrying, The consultation materials will be manual dexterity, available in a variety of formats, including wheelchair user) in hard copy and electronic. Anyone who cannot respond via the standard channels provided or wishes to obtain a different format of the consultation will be able to email or phone the consultation team to discuss their individual requirements.

Groups representing disabled people will be engaged as appropriate.

Page 4 of 11 Page 84 Disability Target Group Positive Adverse Comment/Evidence People with Medium Public events organised by TfGM will communication or take place in accessible venues. sensory impairments (Includes blind/partially Modern PCs, laptops, tablets and other sighted, deaf/hard or electronic devices have software installed hearing, difficulty which enables the user to convert text speaking) into a more readable or otherwise intelligible format.

Anyone who cannot respond via the standard channels provided or wishes to obtain a different format of the consultation will be able to email or phone the consultation team to discuss their individual requirements.

Requests for versions of the consultation materials in additional formats (e.g. Braille, British Sign Language) will be considered in accordance with GMCA’s working practices on inclusive communication.

Groups representing disabled people will be engaged as may be appropriate. People with a learning Medium The consultation materials will be written disability or cognitive in plain English. impairment (Includes conditions which affect The consultation document will be ability to learn, augmented with additional explanatory understand, read, and illustrative material, including remember, and appropriate visual material. concentrate e.g. Downs Syndrome, autism, ADA) Requests for Easy Read versions of the consultation material will be handled on a case-by-case basis in accordance with GMCA policies.

TfGM will be providing information stands, public drop-in events and a telephone helpline for those who wish to talk to us face-to-face. This will allow explanations of the proposals to be tailored to the needs of the individual, including those who may not be able to read our written material. There will also be a shorter version of the response form available.

Groups representing disabled people will be engaged as may be appropriate.

Page 5 of 11 Page 85 Disability Target Group Positive Adverse Comment/Evidence People with mental Medium No obvious risks of exclusion arise for health problems members of this group. (Includes depression, schizophrenia)

People with long standing Medium No obvious risks of exclusion arise for illness/health condition members of this group. (Includes cancer, HIV, MS, diabetes, heart disease, epilepsy, continence)

Other disability / Medium As above. impairment not covered by any of the above

Gender Target Group Positive Adverse Comment/Evidence Men Medium No obvious risks of exclusion arise for members of this group.

Women Medium As above.

Transgender People Medium As above.

Race Target Group Positive Adverse Comment/Evidence Asian or Asian British Medium For some members of this group, Backgrounds (This language may present a barrier to full includes Pakistani, participation. Indians and Bangladeshi, Chinese or any other The consultation materials will be written Asian background) in plain English. A dedicated language line will also be set up to assist people who might require it.

Requests for versions of the consultation document in alternative languages will be considered in accordance with TfGM’s and GMCA’s working practices on inclusive communication. There will also be a shorter version of the response form available.

Page 6 of 11 Page 86 Race Target Group Positive Adverse Comment/Evidence Black or Black British Medium As above. Backgrounds (This includes Caribbean, African or any other black background)

Mixed /Multiple Ethnic Medium As above. Groups (This includes White and Black Caribbean, White and Black African, White and Asian or any other mixed background)

White British Background Medium No obvious risks of exclusion arise for (This includes English, members of this group. Scottish & Welsh, Irish and Gypsy or Irish Travellers)

Non-British White Medium For some members of this group, Backgrounds (This language may present a barrier to full includes Irish, Polish, participation. Spanish, Romanians and other White The consultation materials will be written backgrounds) in plain English. A dedicated language line will also be set up to assist people who might require it.

Requests for versions of the consultation materials in alternative languages will be considered in accordance with TfGM’s and GMCA’s working practices on inclusive communication. There will also be a shorter version of the response form available.

Arabs Medium As above.

Any other background No other groups identified. not covered by any of the above

Religion/Belief Target Group Positive Adverse Comment/Evidence Buddhists Medium --- No obvious risks of exclusion arise for members of this group.

Christians Medium --- As above.

Page 7 of 11 Page 87 Hindus Medium --- As above.

Jews Medium --- As above.

Muslims Medium --- As above.

Sikhs Medium --- As above.

Others Medium --- As above.

Sexual orientation Target Group Positive Adverse Comment/Evidence Gay men Medium No obvious risks of exclusion arise for members of this group.

Lesbians Medium As above.

Bisexual Medium As above.

Other Target Group Positive Adverse Comment/Evidence Other No other groups identified. t

Question 9 If this activity involves new build or alteration to existing building, has any consideration been given to provision of a multi-faith room?

Not applicable.

Question 10 Have you identified two or more high adverse impacts in the table above?

No.

Question 11 If you have identified one high adverse impact or any medium/low adverse impacts, what improvements to the activity would/could you make to mitigate high/medium/ low adverse impact? Please give details of the improvements you plan to make.

Not applicable. ___

Preamble to response to Question 12

The purpose of monitoring is to identify the emergence, as responses to the consultation are received, of any under-representation of protected characteristic groups in order that

Page 8 of 11 Page 88 corrective action can be taken. However, there are several practical difficulties with monitoring:

 The personal characteristics of people who respond by letter or email are unlikely to be known, other than possibly gender.  Where people fill in a form, it is only possible to capture the broadest characteristics of respondents (age, disability, gender and race) since to do otherwise would risk deterring or alienating respondents with a long-list of detailed questions.  There is no reliable yardstick against which to measure the aggregate profile of respondents. Even assuming equal awareness, understanding and ability to respond, it is unlikely that the profile of respondents would match that of the general population (and in some cases, the characteristics of the latter are unknown – e.g. sexual orientation).  The volume of responses to consultations tends to be low in its early stages, making any assessment of the emerging profile even more unreliable.

For these reasons, only high-level monitoring will be undertaken (on a weekly basis) to identify issues of clear concern.

Question 12 Have you set up equality monitoring systems to carry out regular checks on the effects your activity has on:

Equality Group Details

Age Broad age category will be monitored.

Disability Broad categories will be monitored.

Gender The ratio of males to females will be monitored.

Race Broad categories will be monitored.

Religion/Belief Will not be monitored. There is no reason to expect that members of these groups are at a higher risk of being unaware of the consultation, of not being able to understand it or of being unable to effectively communicate their views.

Sexual orientation Will not be monitored.

Other None identified.

Question 13 How will you measure the success of this activity? (Including any corporate performance measures)

See Question 12.

Question 14

Page 9 of 11 Page 89 In question 10 above you may have outlined improvements to the activity which will mitigate a high, medium and/or low adverse impact/s. How will you ensure that everyone involved in the activity knows and understands what improvements you intend make and is able to put the activity into practice with those improvements?

Not applicable.

Question 15 Are there any elements within this activity that require a separate Equality Impact Analysis?

No. Note that, a separate Equality Impact Analysis has been prepared for the proposed franchising scheme and will be published at the point of undertaking any consultation.

Question 16 Please confirm that during the implementation of this activity, where appropriate, TfGM's corporate strategies and procedures will be followed. If your answer to any of these questions is "no", explain why you will not be following the strategy or procedure.

Strategy/Policy Details

Communication with Yes members of the public – TfGM’s Corporate Communications Strategy will be followed

Procurement – Yes TfGM’s Procurement Strategy will be followed

Consultation and Yes Engagement – TfGM’s Consultation and Engagement Strategy will be followed

Projects – Project Yes Management Procedures will be followed

Question 17 Is a Full Impact Analysis needed? If in question 8 you identified two or more adverse impacts then you should either abort the activity, or carry out a full analysis

No (not required)

Question 18

Page 10 of 11 Page 90 List all of the information that you have taken into account in carrying out this Equality Analysis

Ofcom (2019), Adults: Media use and attitudes report 2019

Question 19 Additional comments

This documented is intended for internal purposes only in so far as it considers the impacts of the consultation exercise.

Supporting documents Ofcom (2019), Adults: Media use and attitudes report 2019

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Greater Manchester Combined Authority Notice

At its meeting on the 7 October 2019 the Greater Manchester Combined Authority (“the Authority”) authorised the publication of this Notice of a proposed bus franchising scheme (“the Proposed Scheme”), and decided to undertake a consultation about it, in accordance with section 123E of the Transport Act 2000 (as amended) (“the Act”).

The Proposed Scheme would cover the whole of the Greater Manchester Combined Authority Area, which includes the districts of Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford and Wigan (“the Area”). The Proposed Scheme identifies the local bus services the Authority proposes to provide under local service contracts which will give the person awarded the contract the exclusive right to operate the services to which the contract relates. The intention is that all bus services that are being run within, and into, Greater Manchester when the scheme is made will, with certain exceptions, be provided under such contracts. Those bus services now proposed to be provided under such contracts are listed in Annexes 1 and 2 of the Proposed Scheme.

For the purposes of transition, the Area would be split into three-sub areas, A, B and C (shown on the attached map). The Authority proposes to enter into local service contracts in respect of these sub-areas at different times. The dates on which the first such contract in each sub-area may be entered into are: sub-area A: 19/04/2021; sub-area B: 11/04/2022 and sub-area C 03/04/2023. A service would be provided under such a contract in each sub-area no sooner than 9 months after such contract is entered into. Once the first service is provided under such a local service contract in a sub-area, no listed local service may be provided in that sub-area unless it is: provided under such a local service contract, it is an interim service, it is provided under a service permit or it is excepted from regulation under the Proposed Scheme.

To facilitate the orderly introduction of franchising, where the route of a service runs in more than one sub-area, the Proposed Scheme contains provisions for phasing franchising in. The Proposed Scheme therefore provides that where a listed service that is to provided in sub-area A and also in sub-area B and/or C, it may not be required to be provided under a local service contract in sub-area B and/or C until the listed local services are required to provided in those sub-areas under local service contracts. Similarly, a listed local service to be provided in sub-area B is also in sub-area C may not be required to be provided under a local service contract in sub-area C until the listed local services are required to provided under local service contracts in sub-area C. Listed services subject to such transitional provisions are identified in article 5.2 of, and Annex 1 to, the Proposed Scheme. In such cases,

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where only part of the service is required to be provided under a local service contract, the remainder may be procured by the Authority under other powers until that part of the listed local service is required to be provided under a local service contract.

In addition to the above, some listed local services, the routes of which are also in more than one sub-area, will be temporarily excepted from regulation under the Proposed Scheme until the whole route is within sub-areas in which listed local services are required to be provided under local service contracts. Similar exceptions apply in respect of services serving schools or colleges in sub-areas B and C until the local services to be franchised in the sub-area in which that school or college are located have to be provided under a local services contract. These exceptions from regulation are identified in Annex 3 and 4 to the Proposed Scheme.

The Proposed Scheme also excepts from regulation services for pupils to and/or from school which do not provide transport to the general public. Local bus services (other than an interim service) in an area that becomes subject to section 123(2) and (3) of the Act, that are not provided under local service contracts or which are not excepted from regulation, will require a service permit to operate within that Area.

A copy of the Proposed Scheme, an assessment of it prepared for the GMCA and an independent auditor’s report on that assessment, together with a consultation document (which includes more detail on the Proposed Scheme and how to respond to the consultation), are available for inspection hard copy form in each district’s town hall and can be found online at www.gmconsult.org.

The consultation will close at midnight on 8/1/2020. To respond to the consultation, please:

To respond to the consultation please:

 Complete and submit a questionnaire at www.gmconsult.org.  Email a completed questionnaire or your comments to [email protected]  Post a completed questionnaire or your comments to Freepost GM Bus Consultation

Questionnaires and other consultation documents are available in public buildings throughout Greater Manchester or can be downloaded at www.gmconsult.org.

If you’d like to respond in a different way, please contact [email protected] or call 0161 244 1100 to discuss your requirements.

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For further information about this Notice, please contact [email protected] or by telephone at 0161 244 1000.

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