Value for Money of Tendered Bus Services (DfT)
This note presents an assessment of the value for money (VfM) of tendered services in England, excluding London. The analysis is broken down by metropolitan and non-metropolitan areas.
The monetised benefits of tendered bus services include:
• benefit to passengers who are able to travel on the services and access work, leisure, education etc.,
• net profit to bus operators, which is made up of fare revenue and tendering subsidy, net of operating costs,
• net effect on road congestion from reduced car journeys and increased bus trips, and
• net effect of greenhouse gas emissions from reduced car journeys and increased bus trips.
The monetised costs are the local authority costs of tendered services.