Transport for London explores creating publicly-owned bus company

Transport for London (TfL) is preparing to engage with bus operators later this month to evaluate the feasibility of establishing a publicly-owned bus company for the capital. This move follows proposals in TfL’s business plan to reimagine the London bus network by bringing franchised services in-house to improve innovation, efficiency, and accountability.

Currently, 16 private firms, including Arriva, Go-Ahead London, First Bus London, and Stagecoach London, operate the city’s 675 bus routes through seven-year franchise contracts. Under the proposed model, TfL could transition these routes to the new public operator as existing contracts expire.

The initiative aligns with a 2024 election manifesto promise by Mayor Sadiq Khan, who noted that a public company could allow profits to be reinvested into public transport infrastructure. This shift is supported by the Bus Services Act passed by the Labour government, which removed previous restrictions on such arrangements.