Transport for London (TfL) has confirmed it is proceeding with a feasibility study into establishing a publicly owned bus operator. This comes despite the existing London bus franchising model, where City Hall already controls the network by setting routes, fares, frequencies, and standards.
Under the current system, private operators compete for contracts to deliver services and can be replaced if they underperform. The distinction between public control and public operation is highlighted, as City Hall already exercises control over the network.
The bus operating subsidy for TfL increased from £870m in 2024/25 to £1.2bn this year. It is budgeted to reach £1.28bn in 2026/27 and is forecast to hit £1.7bn by 2029/30, a growth TfL has described as unsustainable.