Greater Manchester’s bus network, widely regarded as a flagship achievement of former Mayor Andy Burnham, faces significant financial challenges that could lead to higher fares and reduced service levels later this year. The Bee Network, which brought the city’s fragmented public transport system under local control in 2023, introduced a fleet of electric buses with fares capped at £2. However, this cap is set to expire at the end of 2026, raising concerns about the network’s long-term sustainability.

The integrated system has seen improvements since franchising began, including a 14% rise in bus journeys on the Bee Network’s vehicles and average punctuality exceeding 80%, compared with around 66% prior to the reforms. Passenger satisfaction has also risen above the national average. Nonetheless, revenue from fares remains below pre-pandemic levels and accounts for roughly 40% of Transport for Greater Manchester’s (TfGM) total funding.

TfGM’s budget for the 2026-27 fiscal year stands at £414.8 million, marking a £56.6 million increase from the previous year. Of this, approximately £135 million requires public subsidy to operate the Bee Network. Around £45 million of the funding currently depends on a time-limited grant from central government, with little assurance of continuation. A February audit report underscored “a significant level of uncertainty” surrounding funding streams for Metrolink and bus services, while a separate budget review indicated a need to draw on financial reserves until 2030.

Councillor John Leech, a member of Manchester’s transport committee, outlined three potential solutions for maintaining the network’s viability: raising tax revenue, increasing fares, or boosting patronage, or a combination thereof. He noted that Burnham appears to acknowledge the system is not sustainable in its current form. Since taking office, Burnham significantly raised the mayoral precept to support the service, and further increases have not been ruled out.

Under the current public control arrangement, Greater Manchester is able to set fares below the national £3 cap for bus services. However, Richard Kilpatrick, the Liberal Democrat candidate to succeed Burnham as mayor, suggested the fare cap may need to be raised to the national level once the current £2 limit expires. “I would be amazed if there was a way to avoid this,” he said.

TfGM defended the cost of subsidising the network, arguing it remains lower than the subsidies paid before franchising. The authority emphasized that operating expenses should be viewed within the broader context of supporting Greater Manchester’s economic growth.

Burnham’s tenure as mayor, which concludes this year, also saw a major pay rise for nearly 600 Greater Manchester bus drivers, with increases of up to 56% spread over three years, reflecting broader investments in the sector amid ongoing financial pressures.