Exclusive:Staggering bill revealed for public cash 'propping up' private bus companies in Scotland
Scotland’s top trade unionists has warned workers are being “short-changed” by bus companies and has called for greater public ownership of the transport network.
Trade union bosses have warned almost £500 million of public money has been spent “propping up” a broken system of bus ownership - amid calls for services to be brought under public ownership.
A new report launched by the STUC union at its congress in Dundee has revealed the extent to which Scotland’s private bus operators rely on public funding while at the same time cutting services, raising fares and maintaining profits.
The document shows that in 2023-24, private bus companies received £439m in public subsidies, accounting for 58 per cent of their total revenue. Private operators retained full control over routes, timetables and pricing, cutting back on services while still confirming large profits.
The STUC report also highlights the private bus industry, over the past 20 years, has produced an average gross profit margin of just over 10 per cent whilst public subsidy has increased by 19 per cent in real terms over the past five years.
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Union leaders have claimed that despite government support, Scotland’s major bus operators are failing to deliver a public service. They have pointed to Lothian Buses, Scotland’s only major publicly owned operator, which union chiefs say has reinvested profits into improving services, decarbonising its fleet and supporting workers.
STUC general secretary Roz Foyer has warned workers are being “short-changed” by bus companies and has called for greater public ownership of the transport network.
Ms Foyer said: “This research lays bare the truth - Scotland’s private bus companies are being propped up by hundreds of millions in public money, while communities are left stranded and services slashed. It’s a broken model that works for shareholders, but short changes workers.
“If we can afford to hand over nearly half a billion a year to private bus companies, we can afford to take them into public ownership control. It’s time to bring buses back into public hands and build a transport network that prioritises passengers over profit.”
She added: “If we’re spending such vast sums on subsidies, we should be giving local people a far greater return on their investment.
“That means prioritising public ownership of the bus network and the STUC is calling on the Scottish Government, local authorities and regional transport partnerships to do exactly that within their ongoing consultations regarding the future of the system.”
The Scottish Government has stressed that through a latest round of zero emissions bus fund, every £1 spent by ministers leveraged in £3.20 of private sector investment. The Government has also said more than two million children, young people, disabled and older people in Scotland are benefiting from free bus travel, making more than three million journeys every week.
A Transport Scotland spokesperson said: “We want all local transport authorities to be able to improve all of the bus services within their areas. Through legislation, we have given local authorities powers on partnership working, franchising and to run their own bus services.
“Our approach enables local transport authorities to determine what is best to address any transport challenges in their local areas.”
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