Funding, sharing, recovery & legacy – a weekly blog post on urban transport and the COVID-19 crisis

Here are some Sunday morning reflections on where things stand for urban transport on the COVID-19 crisis as we prepare to begin another busy week.

1. We have done everything the Government has asked of us during the crisis – now we need the Government to stand behind us

The Government’s overall strategy has been helicopter drops of cash for households, business and local government, accompanied by relaxing of the legal and regulatory framework so that cash can be deployed by the recipients as soon as possible in order to keep the overall show on the road. This has been followed by sub-sectoral support. For transport, rail was first to go, with quasi re-nationalisation, leaving railway people free to get on with the job of running a core service. For bus (where bus deregulation makes life more complicated), we have already had phase one which is local and national government maintaining the funding flows they control for concessionary fares, supported services and fuel subsidies (BSOG), whether or not those services are being provided or not. Phase two should be ready to roll early this week (which broadly speaking will be additional payments for operators on the basis of the service they are actually providing). The idea is that in return for maintaining a level of public support that seeks to compensate for lost income from passengers, operators will do the right thing (provide an essential network based on where essential workers are and where they need to get to) in a collaborative way with transport authorities. And at the same time, that they won’t do the wrong things (like go ahead with planned fares rises). It’s early days yet on how well this plan will work in practice over the coming weeks – but it’s definitely a good thing that the Government has made additional funding support to maintain bus networks an early priority. And on the ground, private sector bus operators and public sector authorities and their staff are working hard to make it work and to provide the essential network that essential users need.

However, so far public sector transport authorities are not seeing any of the additional funding (other than at the margins). Additional funding for local government goes direct to councils not transport authorities and the extra funding for rail and bus goes to the private sector providers not the public sector transport authorities. And it’s not just those private sector providers that are haemorrhaging patronage (and therefore income) – the same is happening on our tram and light rail systems (like Manchester Metrolink and the Tyne and Wear Metro). Merseytravel is also financially exposed on its Merseyrail Electrics rail franchise and as the provider of a World City integrated public transport network, TfL is losing income on an altogether different magnitude.

At the same time as losing income on their own systems, transport authorities are also making good the lost income of private bus operators (through continuing to pay for concessionary travel and supported services, etc). And all authorities are losing revenue from rent, advertising and broken contract clauses (as projects are put on pause because of the virus). This can’t go on. Especially as this isn’t just about maintaining an essential service for essential workers in the here and now, it’s also about being in a fit state to crank services up when we come out of lockdown. Plus, being able to resume the kind of investment programmes and service improvements that will be needed to tackle problems that haven’t gone away in the meantime – like climate change and the levelling up agenda.

So a big part of our work in the week ahead will be making the case to Government for the funding deal transport authorities need. On this, we have had very good engagement with the Department for Transport Local Transport (who we know are working incredibly hard to move at pace). But to unlock the funding, the work we are doing with them needs to land at Treasury and be seen by Government as a whole as priority.

We have done everything the Government has asked of us in responding to this crisis – now we need the Government to get behind us.

2. Shared approaches to the crisis

The other big job we have (as we have been doing throughout the crisis) is networking between our transport authority members so they can share approaches. We do this through a series of rolling telecons with groups leading on light rail, bus, communications, staffing, active travel, legal and finance, as well as our overarching Board level co-ordinating group (which meets at least three times a week). As a complex coordination job this is working well.

3. Recovery and legacy

The task of winding down networks rapidly but matching them to the needs of essential workers (all whilst protecting staff and seeking to ensure social distancing and securing the funding and legal framework to do this) has been, and remains, an enormous operational and practical challenge. At some stage this process will go into partial and then full reverse (and then be partially or fully reversed again depending on how the COVID-19 pandemic unfolds) which will bring with it new operational challenges, which we are turning our attention to. There are also the wider and enormous long run ramifications of this transformation on all our lives for transport planning (from the future of the daily commute to whether this experiment in mass behaviour change will normalise or inhibit the kind of behavioural change that climate targets imply). Shaping the best legacy we can from the crisis is something that our Assistant Director, Becky Fuller, is leading on and that our transport planning group will be addressing in their first telecon next week.

Another week of tough challenges and long hours begins, but put into perspective by the news that five London bus drivers have died from the virus and the dedication of front line staff at our member organisations in keeping core public transport networks running.

Jonathan Bray is Director at the Urban Transport Group