Bus franchising: From Expression of Interest to go-live with SYSTRA’s Bus team 

Franchising a bus network is a complex, multi-year transformation that touches governance, markets, data, operations, and public trust. The Department for Transport (DfT) recognises this, and various options have been put forward to support Local Transport Authorities (LTAs) on their journey to bus reform.

By acknowledging that the process is demanding and that many authorities do not yet have the capacity or specialist skills in place, government is reframing the debate: success hinges not just on political will, but on building the capability to make good choices and deliver them credibly.

Support is now being provided to those authorities wanting to start a franchising journey. At the core is the Franchising Support Fund, which will allocate support across financial years 2026/27 to 2028/29 for authorities actively seeking to transition to a franchised bus network. 

The funding available includes:

• Up to £500,000 per year for pre-feasibility to test proportionality and alternatives. 

• Up to £1,000,000 per year for the full franchising assessment. 

• One-off £64,000 to fund a Franchising & Bus Reform Officer for one year. 

Eligibility for the funding is specific – authorities must not have franchised any part of their network, nor issued an intent to franchise, and they must confirm council and Chief Finance Officer approval. Each authority may apply only once, for either pre‑feasibility or the franchising assessment. 

The pathway into funding is clear – the current Expressions of Interest (EOIs) window closes on Wednesday 8th April 2026, with outcomes announced in May 2026. EOIs should cover key requirements, a 1,000‑word franchising programme description, a 500‑word statement on meeting the Public Sector Equality Duty, and a 500‑word monitoring and evaluation commitment. For new entrants this structure is invaluable as it frames what “credible” looks like without demanding a fully-formed solution on day one.

Why SYSTRA is well placed to support LTAs

At SYSTRA we understand that first-time franchisors face a steep learning curve. We can bring end-to-end support across the franchising lifecycle. From sharpening the EOI to early pre-feasibility through the statutory assessment, option development, procurement strategy, and contract design, to mobilisation and performance management.  

Over recent years, our specialists have assisted authorities on their route to franchising including expertly supporting Franchising Scheme Assessment development and auditing, operational readiness, network reviews and ticketing integration. Examples of our client support include: 

• Reconciling data: Including ticketing, patronage, revenue, cost, punctuality, and asset data, allowing an audit ready evidence base to be built. 

• Interpreting statutory guidance: Defining scope, agreeing proportionate methods, aligning to DfT requirements, and sequencing the statutory assessment, consultation, decision points, and procurement. 

• Defining workforce, depot, and fleet dependencies: We advise on the considerations around depot access, ownership, electrification, fleet age and compliance, and lead times for procurement helping shape the feasibility of available solutions for infrastructure as well as workforce transfer. 

System reform must accompany localised fixes 

Without meaningful bus reform, transport pressures will continue to escalate. Transport teams have ongoing pressures to manage existing placement decisions. Unless those decisions reflect realistic travel patterns and local capacity, costs will keep spiralling.

It’s important to recognise that local authorities cannot resolve this alone, and operators cannot simply scale up on demand. What is needed is a coordinated, system-wide approach that aligns public transport realities – underpinned by robust, consistent monitoring to ensure quality and value for money.  

SYSTRA projects 

Our bus specialists at SYSTRA have worked alongside authorities in England as part of regional bus reform projects. 

• Transport for Greater Manchester  – developed the economic case and strengthened the quantitative evidence base. Our team built and calibrated a demand–revenue model to forecast patronage and revenue across multiple scenarios, testing network changes and fare or policy interventions. In parallel, SYSTRA supported the franchising audit and consultation, and prepared for implementation through the transition and procurement phases. We designed and refined franchised network specifications, evaluated bidder proposals, supported negotiations, and helped manage both the transition to, and early operation of, the franchised network. 

• West Yorkshire Combined Authority – led network activities for the franchising programme, designed a Service Continuity Plan, reviewed depot and lotting strategy, created performance baselines, developed network specifications, evaluated electrified bus franchises and developed a new Control Centre concept to manage day‑to‑day operations. 

• West Midlands Combined Authority – audited the Franchising Scheme Assessment focusing on the economic case and network considerations. 

• North East Combined Authority – developed the economic case and contributed to the quantitative evidence base. 

• South Yorkshire Combined Authority – defined focused workstreams, milestones, and resource plans at the outset to establish a clear programme vision. We supported franchised network development via lotting strategy, service specifications, service permits, performance‑led prioritisation, and coordinated delivery planning. 

• Liverpool City Region Combined Authority – supported the review and evaluation of the network specification, developed the Economic Case for bus fleet renewal and depot acquisition. 

SYSTRA projects 

We’ll start with a short conversation with key stakeholders to understand where you are, what you want to achieve, and any limits on time, budget, or data. We can then set out a step‑by‑step plan that meets the DfT requirements. From there, we’ll work with you to draft the Expression of Interest and make sure everything is clear, complete, and ready to submit. 

This collaborative approach means you will benefit from our team’s recent and relevant experience of working on franchising. 

What we’ll prepare with you 

It’s important that everybody involved in the process understands that conversations and plans are not enough to get the work over the line. It’s why we at SYSTRA focus on whole lifecycle support – offering clear points of contact and defined deliverables to support submissions. It means our teams will help you produce:

• A simple programme plan with clear milestones for each financial year. 

• A costed scope that fits within the funding caps. 

• A short Public Sector Equality Duty  statement and a practical monitoring and evaluation plan. 

• An outline for the subsidy control annex to guide your legal advisers. 

These items match the requirements set out in the form and guidance, including the need to describe your programme, funding profile by year, equality duty, and monitoring and evaluation approach. They also reflect the guidance on attaching legal advice on subsidy control. 

Get in touch with SYSTRA’s bus team 

If you would like help shaping your EOI or exploring the right franchising pathway for your area, we would be delighted to set up an exploratory meeting. Reach out to any of our specialists: 

• Neill Birch: [email protected] 

• Brian Drury: [email protected] 

• James Tomkinson: [email protected] 

• Renos Livadiotes: [email protected]