Labour’s ‘Bus Revolution’ Is Doomed To Fail, Says Scottish Billionaire

Sandy Easdale has owned McGill’s, Scotland’s biggest independent bus operator, for 25 years. Credit: Tom Ross/Shutterstock

Labour’s plans to reform bus services are ill-conceived and doomed to fail, the billionaire behind Scotland’s biggest independent bus operator has warned.

Sandy Easdale, who has owned the McGill’s brand in Glasgow and the surrounding area for 25 years, said the Government’s proposal will inflate costs and pile pressure on councils.

His criticism comes as legislation was laid before Parliament on Monday allowing all local authorities in England to take control of bus routes.

Mr Easdale, who owns McGill’s with his brother James, told The Telegraph: “Local authorities struggle to fill in potholes and collect bins at the moment so I don’t see how they expect to be able to run bus services.

“I can promise you that if a route makes money or is marginal but adds to the wider network then we’ll operate it. We don’t cut routes unless they’re vastly loss-making.

“But with the council in charge, everyone will want a bus to their door. This will grow arms and legs and they’ll be loaded up with subsidies. Where’s the value for anyone in that?”

The plan to hand control of bus routes to local authorities comes as councils struggle to fund existing commitments, with eight councils forced to declare bankruptcy since 2018.

Authorities face a collective £4.3bn hole in their finances next year, the Unison union warned on Monday, citing information gleaned from spending plans.

Described by Labour as the biggest reform of buses since the sector was deregulated under Margaret Thatcher in 1985, the Buses Bill will give every authority in England powers over local services previously limited to mayoral combined authorities.

Scotland is following a similar path, with plans for franchising set to be finalised by the end of the year.

Strathclyde Partnership for Transport has said it intends to use the powers to take control of buses in its area of responsibility, which includes Glasgow.

Transport Secretary Louise Haigh said that de-regulation of buses had failed as timetables had been “hollowed out”. She said the new legislation would herald a “bus revolution”.

She said that putting local leaders in control would “deliver improved bus services faster and cheaper than ever before” while also saving vital local routes from closure.

Mr Easdale, who is worth a combined £1.45bn alongside his brother according to the 2024 Sunday Times Rich List, said Labour’s opposition to the status quo is misplaced and fails to acknowledge the popularity and efficiency of private bus operations.

Survey results published last week by independent watchdog Transport Focus showed that 86pc of bus users in Scotland were satisfied with their last journey, rising to almost 90pc in Glasgow and surrounding areas where McGill’s operates.

Subsidy levels are also far lower for buses than on the railway, Mr Easdale said, with taxpayers contributing £3.89 per rail journey, compared to 27p for bus services.

He said: “Buses are not at all like the trains. We get hardly any state support but we’re far more popular with the public. Our approval ratings are unheard of.”

Mr Easdale also raised doubts over the success of Greater Manchester’s “Bee Network”, which is controlled by Mayor Andy Burnham.

The network is the only one outside London to so far adopt bus franchising, and is regarded by Labour as a template for running public transport on a more integrated basis.

Mr Burnham last month offered to “come and help” with the introduction of bus franchising in Scotland while visiting the Alexander Dennis factory in Falkirk, where new buses for the Bee Network are being built.

Mr Easdale said: “Andy Burnham is keen for everyone to follow him. But they spent millions and millions and there is no better service. And he certainly knows nothing about Glasgow.

“Governments, whether national, Scottish or local, cannot run businesses. The drivers will want to be paid like civil servants and have the same pension schemes. And who will peg the hole? It has to be the government. So the taxpayer will suffer.”

Arriva UK Bus said franchising models can work provided they’re combined with measures to deliver investment and growth, while First Bus said it’s successfully running franchised buses in Rochdale as part of the Bee Network.

Still, the Confederation of Passenger Transport (CPT), which represents 800 bus and coach firms, said the Government should recognize that not all routes will benefit from franchising and that in some instances the partnership models that exist today should be retained.

A spokesman said: “For large operators this may be a case of you win some, you lose some. But for the independent firms, it may represent an existential threat.

“If they lose their route rights in the franchise bidding they’re not just going to up sticks and move to another part of the country. It’s likely they will go out of business.”

Mr Easdale said: “This is nationalisation via the backdoor. I’ve built a business over 25 years and they want to snatch it away like Putin and offer it to the highest bid.”

This article appeared in The Telegraph.