The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to West Midlands Combined Authority (WMCA) concerning its proposed Bus Network Support Grant subsidy scheme.
Administrative timetable
| Date | Action |
|---|---|
| 11 May 2026 | SAU’s report to be published |
| 13 April 2026 | Deadline for receipt of any third-party submissions |
| 26 March 2026 | Beginning of reporting period |
Request from WMCA
26 March 2026: The SAU has accepted a request for a report from WMCA concerning the proposed Bus Network Support Grant subsidy scheme. This request relates to a Subsidy Scheme of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of WMCA’s assessment of whether the subsidy scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the scheme provided by WMCA
WMCA is proposing a subsidy scheme of up to £145.3 million available to bus operators providing commercially registered local bus services in the geographical area of the West Midlands Combined Authority.
The scheme will operate from 1 June 2026 to no later than 31 March 2029.
The main objective of the scheme is to ensure bus operators can maintain a stable bus network whilst the region transitions to providing the network through competitively tendered franchises. This follows a decision by the Mayor of the West Midlands in May 2025 to re-regulate and franchise the region’s bus services. WMCA expects that maintaining a stable bus network through the transition process will ensure the network remains comprehensive for existing passengers, that the market remains attractive for bidding operators and that WMCA can best achieve the delivery of its wider policy objectives as outlined in the region’s Local Transport Plan.
The proposed subsidy is only applicable to live miles operated on registered local bus services in the Authority area. To be eligible, operators must:
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limit any bus service reductions to the levels proposed within the scheme’s terms and conditions and must not exceed 2% without the prior approval of the Authority
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adhere to open book accounting and enhanced data provision relating to passenger numbers and service performance
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support the delivery of the region’s Bus Service Improvement Plan and the associated Enhanced Partnership
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provide regular data including scheduled and operated miles to support any claim in a timely manner
Grants will be allocated to operators based upon the proportion of the total network miles scheduled to be operated in each four-week period. Operators will be paid the grant based upon the percentage of those miles operated. The nature of this payment method is intended to drive improvements in service reliability.
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed Bus Network Support Grant subsidy scheme, please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, read the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to us at sau-wmcabusnetworksupportgrant2026@cma.gov.uk, copying the public authority: busalliance@tfwm.org.uk
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
The SAU will only take your submission into account if it can be shared with WMCA. The SAU will send a copy of your submission to WMCA together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy scheme or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with WMCA using the email address provided above.
The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
- SAU project team: sau-wmcabusnetworksupportgrant2026@cma.gov.uk
- CMA press team: 020 3738 6460 or press@cma.gov.uk
Facts Only
SAU: Subsidy Advice Unit
WMCA: West Midlands Combined Authority
£145.3 million: proposed subsidy amount
June 2026 - March 2029: operating period of the scheme
May 2025: decision by the Mayor of the West Midlands to re-regulate and franchise the region’s bus services
April 13, 2026: deadline for third-party submissions
Executive Summary
Full Take
The proposed Bus Network Support Grant subsidy scheme by WMCA is intended to ensure a stable bus network while transitioning from commercial to franchised operations. This move follows the decision made in May 2025 by the Mayor of the West Midlands. The scheme requires operators to comply with certain conditions, such as limiting service reductions and providing regular data.
This proposal is part of a broader policy objective outlined in the region's Local Transport Plan. It aims to maintain a comprehensive network for existing passengers, ensure market attractiveness for bidding operators, and facilitate the delivery of wider policy objectives. However, it remains to be seen how this subsidy will impact the overall efficiency and competitiveness of the bus industry in the West Midlands region.
It is important to consider potential implications of this scheme on both the operators and passengers. Operators must adhere to strict terms and conditions, including open book accounting and data provision. On the other hand, passengers may experience changes in service quality or frequency due to the subsidy's stipulations.
Questions for further reflection: How will this subsidy impact the competitive landscape of the bus industry? What are the potential implications for service quality and passenger experience during the transition period?
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