How we support Britain’s economy and communities

.com We carry We employ almost 24,000 people around 2.5 Welcome million customers a day Our transport services play a vital role in keeping Britain moving We operate 8,300 buses, coaches and trams

For four decades, Stagecoach transport services have The new research carried out by Cebr has now also revealed transported billions of people, helped to build strong local the wider transport benefits associated with Stagecoach, which economies and provided a greener way to travel. As the demonstrate how we contribute towards making the nation more UK’s biggest bus and coach operator, our operations serve active, delivering cleaner air, reducing congestion on our roads communities in major cities including , , and making our communities safer. , Newcastle, Hull, , and * as well as inter-urban and rural locations, such as Stagecoach internal data and .

We connect people with jobs, skills and training, bring customers to our high streets and draw families, friends For over 25 years Cebr has supplied We create vital and communities together, supporting the country’s independent economic forecasting and Jobs economic growth and reducing social deprivation. analysis to hundreds of private firms Our economic impact employment and public organisations. Cebr was This new report published by Stagecoach and the commissioned by Centre for Economics and Business Research (Cebr) to assess the economic and social contribution of its We pay our way …that’s analyses the significant impact that Stagecoach makes, not transport services to the UK economy. Tax just directly in providing transport services but more widely For centuries the foundation Driven by extensive data provided by Stagecoach, in supporting the economy and our communities. of Britain’s economy has been Cebr quantified the significant direct economic the private sector, with major Stagecoach supports 33,000 contribution of Stagecoach’s activity to the UK We have been constant in our support of the country’s employers like Stagecoach making direct and indirect jobs economy, and the additional economic output across the UK economy and communities, where we provide lifeline bus significant contributions towards supported through its supply chain expenditure services, with £930 million a year in GVA directly contributed national financial growth. 1 in every to the UK economy. and wider employee spending.

In addition, the use of over private 1,000 UK jobs vehicles can have significant social and environmental And for every 10 jobs Gross Value Added (GVA) benefits and the research considers these additional directly generated by is the measure of our contribution towards benefits associated with Stagecoach. Stagecoach, a further

the growth of the economy. This research includes Stagecoach bus services,

Stagecoach Supertram and the company’s Shared 4 jobs

Stagecoach is one of the country’s biggest private sector Service Centre in . Analysis was carried out Stagecoach and our employees are supported in aggregate employers. We provide direct employment for around 24,000 from data for financial year 2013–14 to financial year directly pay around …which is enough to fund people in the UK, from bus and tram drivers, to engineers and 2017–18, with the majority of statistics quoted in this report taken from 2017–18. customer service staff. A further10,000 jobs are supported nationally, which sees us providing support to around £220m 5,000 7,000 small, medium and large businesses, investing in tax to the UK exchequer each year, qualified nurses!** over £580 million a year through our supply chain.* through payroll and corporation taxes

spent£580m supporting the UK supply chain Forty years after we were founded, in Supply chain We’ve grown from a family business Stagecoach was in Perth, , to become a founded in major listed public transport group 2020 Our success supports a year Stagecoach work with 1980 other businesses ,000 7 businesses For every £10 in turnover directly generated by Stagecoach bus services, a further £9.40 of turnover is supported as Britain’s original and most we are one of the largest private sector through the supply chain and wider employee spending. successful transport start- employers in the country

2 Stagecoach: How we support Britain’s economy and communities **, based on average nurse salary Stagecoach: How we support Britain’s economy and communities 3 How we benefit Britain Benefits to regional Every year we make a significant* direct economic impact on the UK economy: economies across £220 people Direct million the UK We provide transport links for 23,769 directly Income Tax employed contributions £930 Our services cover a network stretching from the Highlands and 2.5 million Islands of Scotland to South West . We operate in each of customers a day the UK’s major regions and the table below highlights the regional million economic footprint of our bus services. £710 million Employee in wages and £1.3 Turnover (£ million) GVA (£ million) Employment (jobs) compensation employee benefits billion (£ million) direct turnover Direct Aggregate Direct Aggregate Direct Aggregate Direct Aggregate ** ** ** ** Region* impact footprint impact footprint impact footprint impact footprint

When we add these figures to ourwider economic footprint, our bus operations and employees support: Scotland 190 344 121 198 3,217 4,313 90 137 jobs £1.63 70 121 49 76 1,365 1,782 35 51 billion 33,386 218 390 182 286 4,481 5,988 124 188

£1.15 & Humber 89 156 63 98 1,813 2,376 47 70 £2.52 billion £380 billion in wages and turnover employee benefits million East 76 132 54 84 1,493 1,958 41 60 Income-related tax contributions 35 55 19 26 493 604 16 21

Wider society benefits London 255 425 182 276 3,962 5,130 159 228 Our public transport services also deliver significant wider social and environmental benefits for our country with millions of pounds saved every year in costs associated with healthcare, emissions and congestion as a result of people using buses rather than private vehicles. 63 114 45 74 1,041 1,403 33 50

South East England 164 297 120 197 3,110 4,198 89 137 £343 £44.2 99 184 65 109 1,936 2,643 51 81 £12.4 million million £13.3 saved in emissions costs, million in potential congestion which would power saved in costs associated related savings from million with road traffic accidents, reducing road mileage by 43 75 27 43 858 1,119 21 30 9,800 which would fund more than saved in healthcare costs, homes for a year† which is equivalent to 1.22 billion the costs of over 750 extra salaried Ps† † miles UK 1,301 2,521 927 1,621 23,769 33,386 705 1,153

83,000 people** being seen in * Data based on 2018 full year figures ** & departments _-_Reference_costs_201718.pdf * This is the same classification used by the UK government for its data † ** The wider economic footprint of Stagecoach goes beyond the direct impacts, due to activity along the supply chains and the wider spending that occurs when employees (and the is-the-average-gas-and-electricity-bill-per-month employees supported along the supply chains) spend their earnings in the wider economy. These combine to give the aggregate economic footprint † † Based on average GP salary from NHS Digital (08/2019) 4 Stagecoach: How we support Britain’s economy and communities Stagecoach: How we support Britain’s economy and communities 5 Did you know? UK regions in the spotlight How our impact is The UK saved an estimated

The majority of our GVA contributions are in the North West, followed by London, benefiting Britain Scotland and the South East. £12.4 million in emission costs in 2018 due Case study to our bus services helping to reduce the country’s carbon Scotland footprint In Scotland our aggregate Investing in cleaner technology GVA is

The North West £198 million For four decades we’ve pioneered greener and This significant investment will deliver cleaner air closely followed by the smarter mobility, with a key focus on providing and reduced road congestion through a greener bus Here we make one of our highest South East at cleaner buses for the country’s travelling public fleet, aiming to help generate further modal shift from contributions to the economy, and for and boosting air quality for towns and cities right the car to public transport. By the end of 2020, we’ll every £1 in direct GVA contributions £197 million across the UK. We’ve invested £1 billion in 7,000 be running one of the biggest fleets in an additional 61p is supported. new greener vehicles in the past decade; more Europe with 100 e-buses on the road. than any other operator in the UK.

Delivering greener journeys remains a key priority and during 2020, with support from the Department invested in for Transport’s Ultra-Low Emission Bus Scheme, we greener buses over the past will roll out one of the biggest electric bus orders £1bn decade in Europe. £13 million is being invested in around 50 new zero emission e-buses for Manchester £ and South Wales.

We are one of the biggest employers in North West England and support around 4,481 jobs Did you Case study directly. A further 1,507 jobs are know? supported through our supply chain or as a result of the money our Road mileage across the UK is employees spend in the region. estimated to be reduced by Cutting carbon 1.2 billion emissions and miles as a result of cars being taken off the roads by people using our bus services The South West This is more than boosting air quality

In the South West, where we serve 48,000 Climate change and declining air quality are two of the biggest towns and cities such as Devon, trips around the earth challenges our planet face, and we all need to work together to Torbay and Plymouth, we indirectly play our part in addressing these issues. generate the highest number of additional jobs as a result of Our efforts to tackle these major challenges have delivered a our operations. 14% reduction in carbon emissions across our services between 2014 and 2019, and we’ve reduced our annual carbon impact by 14% reduction in more than 168,000 tonnes of CO2e a year. In our bus and coach For every job supported by London operations alone, we’ve reduced our passenger fleet emissions by Stagecoach, a further 0.37 jobs carbon emissions more than 78,100 tonnes of CO2e a year, with annual buildings emissions cut by over 7,250 tonnes of CO2e. are supported in aggregate Our London bus business contributes across our services between 2014 and 2019 We have made a big impact £55.1 million to on reducing congestion in A range of multi-million-pound investments and company-wide London. It is estimated that in sustainability projects have helped drive the environmental the exchequer the absence of Stagecoach improvements. These include the introduction of new greener via income-related taxes (on average, buses, total road mileage in buses and coaches, investment in eco-driver technology, £9,182 is paid in income-related tax London would increase by training for bus drivers and engineering teams, measures to by every one of our bus employees between 2.23% and 2.73%. tackle bus idling, and use of state-of-the-art environmental across the UK). management systems.

6 Stagecoach: How we support Britain’s economy and communities Stagecoach: How we support Britain’s economy and communities 7 A specially developed Case study app, supported by a Case study telephone booking service for those We are also driving forward several initiatives customers who prefer to build a more inclusive workforce, which has Improving mobility to speak to somebody, Investing in our people seen us rated as Britain’s top public transport offerson demand company for diversity and inclusion, according pick-ups covering to Britain’s Most Admired Companies (BMAC). a selection of the Our business is built on our people, and we have a diverse, high-quality We have already taken some significant steps in in rural areas rural communities in team. By investing in their skills and talent we can better serve our building a more gender-diverse workforce with , customers and our communities. Our industry-leading initiatives are more women in senior positions and more female and Redcar & Cleveland, designed to help nurture the next generation of talent and help our representation in our graduate scheme. We’re Along with our industry partners, we are looking at new transport solutions to where people achieve their potential. We are proud to be leading the way in now looking at how we can recruit employees help keep people connected in less populated areas. A new demand-responsive there isn’t delivering the first bus driver apprenticeship programmes in England, from a range of diverse backgrounds as well service is designed to help link communities in the . Working with the the need with a 12-month programme providing a combination of practical investing heavily in apprenticeships and training Tees Valley , this high-quality, quick, affordable, reliable and for a full safe transport network is designed to help people move within, to and from the training and off-the-job learning. This runs alongside ouraward-winning to attract young people into careers in the public timetabled transport sector. Tees Valley. This boosts connections to employment, education and healthcare, as bus service. engineering apprentice scheme. well as helping people to visit friends and family.

Community benefits

Case study Public transport makes a significant economic contribution in helping people to access employment opportunities, providing a vital link for those people who are unable to drive or do not have access to a car, connecting children with schools, and improving accessibility to health facilities. Sector-leading Other major benefits associated with our transport services include: innovation Health and well-being Safer roads We have a long history of being at the forefront of innovation and improvements Based on government data, the numbers harnessing new technology. In 2020 we are playing a key role in of accidents for cars, taxis, cyclists and pioneering live trials of Europe’s first full-sized autonomous bus. Passengers using the bus can pedestrians significantly outweigh In partnership with Transport Scotland, and incorporate exercise into their the number of accidents on our Fusion Processing Ltd, autonomous buses will operate over the routine, making a vital contribution bus services. Without our Forth Road Bridge, providing services between Ferrytoll Park & to their everyday exercise, as the services, more people would Ride in Fife and the Edinburgh Park train and tram interchange. journey includes walking to and be using different modes from the bus stop. Every year, an of transport, causing up We know that our communities can benefit hugely from estimated £13.3 million is saved to an additional 786 autonomous technology as it can make services safer, more by the NHS in not having to treat accidents per year. efficient and help to deliver better journeys. Alongside our people with significant health The estimated cost of investment in people, these technology developments are key issues such as Type II diabetes this to the public is up to to supporting the UK’s position as a leader in innovation. and Coronary heart disease as a £44.2 million a year. result of physical inactivity.

Case study Less congested roads Reduced emissions Buses can play a huge role in reducing One double-decker bus can take Commitment to safety road congestion. If people weren’t the equivalent of 75 cars off the using our buses, this could lead to an road. Without Stagecoach bus additional 1.22 billion miles in UK services, there would be an Stagecoach bus drivers across the country use a hi-tech eco-driving system to road mileage, with an estimated annual increase of 190,000 help reduce fuel consumption and carbon emissions, improve passenger comfort financial cost of up to£343 tonnes of CO2 through and cut the risk of accidents. The GreenRoad 360 system uses a dashboard traffic million to the country. passengers using alternative lights-style system to provide drivers with real-time feedback on their driving style, transport, mainly cars. This including speed, braking, acceleration, lane-handling and turning. With driving could cost an estimated £12.4 million. decisions responsible for 90% of all accidents, Stagecoach’s investment in this system, along with a comprehensive driver training programme, has helped to deliver a 3% improvement in fuel efficiency leading to smoother, safer driving.

8 Stagecoach: How we support Britain’s economy and communities Stagecoach: How we support Britain’s economy and communities 9 Transforming the future of mobility In return, bus operators commit to: 2. Stagecoach has helped to build strong local communities, supportive measures by and local government to tackle Re-invest savings made from pioneering greener and smarter mobility with one aim: providing congestion and improve journey times. This is vital if we are to improvements delivered through local safe, high quality, value travel where every customer matters. deliver on our shared responsibility – to attract more people to planning and infrastructure measures. sustainable bus travel. We provide significant benefits to Britain’s economies, delivering consistent good value to taxpayers and supporting the regional Our industry strategy, Moving Forward Together, is very clear – Play a central role in the economies in the areas we serve. government needs to work with operators to improve services, 1. development and deployment help tackle climate change and drive more passenger journeys. of a National Bus Strategy by working with government We are determined to continue leading the public transport and manufacturers to deliver the sector in driving further improvements, but we now need investment and innovation required for a world-class future transport Case study network in England. We are calling on the government to:

Support travel for apprentices 3. and job seekers by expanding discounted 1. 3. ticketing to them by 2021. Work with industry Incentivise Local Transport to develop a National Authorities (LTAs) to Bus Strategy – collaborate in setting targets placing bus travel Commit to future rounds to speed up bus journey times at the heart of and reduce their variability, and government planning. of infrastructure funding 2. for urban transport, to use existing enforcement ensuring that bus travel is core powers so we can better to the schemes it funds. use road space. Work with public sector partners to develop and trial rural bus plans so that customers in rural locations are 4. better connected locally and to urban areas.

Establish a working group of key stakeholders to identify and trial alternative bus solutions for rural 5. communities, drawing on the diverse capabilities of the commercial, voluntary and public sectors.

Avoid making sudden, radical changes to the Bus Service 4. Operator Grant (BSOG) and ensure Embrace the opportunity that any future reform is phased; recognising created by Open Data to make the devastating impact that a sudden loss of 6. travel easier, by providing funding could have on the bus market. simple, comprehensive information for our customers, encouraging the use of online 5. ticketing, Mobility as a Service (MaaS) and Endorse bus Introduce contactless, other emerging digital platforms. multi-operator, operators as the price-capped, daily 7. preferred delivery and weekly tickets by partners of government 2022 in urban areas. for the rollout of smart ticketing – based on CO2 our proven record Work with industry to agree a joint roadmap to of successful project zero emissions transport under the Road to Zero implementation. 6. Strategy and continue support for the extra purchase Ensure that bus operators have access to the same cost of ultra-low and zero emissions vehicles until prices Only purchase next generation ultra-low or zero progressively align with diesel comparators. Assist with the data as other providers emissions buses from 2025 – starting this process delivery of supporting fuel infrastructure, and support the UK’s 7. by 2023 in some urban areas. manufacturing and supply chain in improving and developing of integrated important technologies on the road to zero emissions. transport solutions, to enable them to build better digital solutions for customers.

Research presented in this document includes Stagecoach bus services, 10 Stagecoach: How we support Britain’s economy and communities Stagecoach Supertram and the Shared Service Centre in Stockport Stagecoach: How we support Britain’s economy and communities 11 We connect communities across Britain

Stagecoach Bluebird Stagecoach Highlands Scotland Scotland

Aberdeen, Aberdeenshire, Moray Highlands and Islands Fife: including Fife to Edinburgh , , , and Glasgow services. Perth, , Arran, Irvine, , 182 buses 173 buses , Angus ,

542 employees 356 employees 468 buses and coaches 375 buses and coaches

10 million passenger journeys 5.3 million passenger journeys 1,309 employees 1,003 employees

32.5 million passenger journeys 27 million passenger journeys

Stagecoach Wales Stagecoach Cumbria Stagecoach & North & South Lancashire South Wales : , , , Barrow, Merseyside, , Preston, Fylde Newcastle, . : 340 buses , Lancaster Coast areas Stockton, Hartlepool

880 employees 284 buses 405 buses 437 buses

23 million passenger journeys 732 employees 1,223 employees 1,337 employees

22.5 million passenger journeys 46.7 million passenger journeys 61 million passenger journeys

Stagecoach Manchester Stagecoach

Greater Manchester , , Doncaster, , Lincolnshire, , , , Chesterfield, Sheffield , Grimsby to Rugby, , Leamington, 750 buses Cleethorpes, Hull, Skegness, , Stratford-upon-Avon 392 buses Mansfield, 2,323 employees 331 buses 1,185 employees 488 buses 106 million passenger journeys 1,008 employees 41.3 million passenger journeys 1,300 employees 30.6 million passenger journeys 44 million passenger journeys

Stagecoach East Stagecoach Stagecoach West

Main urban areas of Cambridge, Oxford, Banbury, Witney, Bicester , , Ross, Aldershot, Andover, , , . Inter-urban and Oxford Tube (coach services Swindon, Stroud, Bristol , Guildford, , services connecting key centres, from Oxford to London) Winchester, market towns and villages 375 buses 180 buses and coaches 486 buses 350 buses 1,000 employees 570 employees 1,226 employees 1,001 employees 25.7 million passenger journeys 19.1 million passenger journeys 40.4 million passenger journeys 34 million passenger journeys

Stagecoach South East

East Kent and East Sussex: Ashford, Devon, Torbay, Plymouth Contracted services on behalf of The market-leading , Dover, , in East and coach operator in the UK, linking Folkestone, Hastings, Herne Bay, 401 buses South East London 90 locations with high quality, Thanet (Margate, Broadstairs, low-cost travel in some of the Ramsgate) 1,200 employees 1,100 buses country’s newest coaches

439 buses and coaches 30 million passenger journeys 3,800 employees 4 million passenger journeys 1,350 employees 240 million passenger journeys 40 million passenger journeys

Stagecoach Supertram

Sheffield and Rotherham Scotland’s leading provider of express coach services, connecting 32 trams around 200 towns and cities

350 employees 5 million passenger journeys 12 million passenger journeys T 01738 442111 E [email protected]

© 2020 Stagecoach Group. Registered in Scotland: SC100764. Registered office: 10 Dunkeld Road, Perth, PH1 5TW, Scotland Publication date February 2020