Taking control of the North East’s bus network away from private operators could lead to cheaper fares and more people using buses, a new assessment has found. The review found that Ms McGuinness’ proposed Angel Network franchise system would generate an estimated 15.7 million more journeys a year by 2059 compared with the current deregulated model.
The plans would see the North East Combined Authority take control of bus routes, fares and timetables for the first time since bus deregulation in the 1980s.
The assessment concludes that while the reforms would require more than £334 million of public investment over the next three decades, the scheme would deliver better value for money than the current system operated by private companies including Go North East, Stagecoach and Arriva.
The findings were published as the mayor’s office launched a region-wide consultation asking residents for their views on the future of local bus services.
Ms McGuinness said the current network had been repeatedly reduced over recent years, leaving many residents unable to rely on buses to reach work, education and healthcare appointments. She said: “We can’t do nothing. The state of our buses is just not viable, it is not acceptable, it is not what people in this region deserve. It has to change.”
Ms McGuinness argued that some operators were making profits of between 10 and 15 per cent while receiving significant levels of public subsidy. Meanwhile, private operators are delivering a service that many passengers feel is inadequate.
According to the assessment, passenger numbers across the North East bus network fell by 52 million journeys between 2009 and 2025, while the number of miles covered by services dropped by 24 million over the same period.
The assessment warned that failing to intervene could leave the North East with a “skeleton network” focused on profitable urban routes, while rural services become increasingly limited or disappear altogether.
Ms McGuinness’ model, which follows on from Andy Burnham’s Bee Network bus system in Greater Manchester, includes plans to cap fare increases at inflation levels and introduce simpler ticketing, improve public safety, and a pledge not to cut the size of the bus network for at least 10 years.
Bus operators received an estimated £123 million of public funding in 2024/25, representing around 51% of their total income. The report argues that without intervention, the region risks a continued decline in bus services, potentially leaving only profitable urban routes operating while rural services become increasingly limited or disappear altogether.
Under the proposed Angel Network, operators would bid for contracts to run services rather than operating routes on a commercial basis.
The plans also include a commitment to cap fare increases at inflation levels, simplify ticketing, improve passenger safety and prevent reductions in the overall size of the network for at least a decade.
A final decision on whether to introduce the franchise model is expected in early 2027. If approved, the first Angel Network services would begin operating in September 2029, with further phases rolled out over the following two years.
Although the assessment predicts that wider trends such as rising car ownership and congestion could continue to affect passenger numbers in the long term, it concludes that public control would significantly outperform the existing model. The review estimates bus fares would be around 22% lower after the first ten years of franchising than they would otherwise be under the current system.
The public consultation will run until September 28, with more than 30 engagement events planned across the region.
