Referral of proposed subsidy to Warrington’s Own Buses by Warrington Borough Council

The Subsidy Advice Unit (SAU) has accepted a request for a report from Warrington Borough Council concerning the proposed subsidy to Warrington Borough Transport Limited, trading as Warrington’s Own Buses.

From:
Competition and Markets Authority
Published
25 July 2023
Case type:
SAU referral
Case state:
Closed
Market sector:
Transport
Opened:
28 April 2023
Closed:
13 June 2023

The Subsidy Advice Unit (SAU) has accepted a request for a report from Warrington Borough Council concerning the proposed subsidy to Warrington Borough Transport Limited, trading as Warrington’s Own Buses.

SAU referral type Mandatory referral
SAU referral state Open
Sector Transport and storage
SAU referral opened 28 April 2023

Administrative timetable

Date Action
13 June 2023 SAU’s report published
16 May 2023 Deadline for receipt of any third party submissions (submissions after 5pm on this date cannot be taken into account)
28 April 2023 Beginning of reporting period

Final report

13 June 2023: The SAU has published its report providing advice to Warrington Borough Council concerning the proposed subsidy to Warrington Borough Transport Limited, trading as Warrington’s Own Buses. The report sets out our evaluation of Warrington Borough Council’s Assessment of Compliance of its proposed subsidy with the requirements set out in the Subsidy Control Act 2022.

Request from Warrington Borough Council

28 April 2023: The SAU has accepted a request for a report from Warrington Borough Council concerning the proposed subsidy to Warrington Borough Transport Limited, trading as Warrington’s Own Buses. This request relates to a Subsidy of Particular Interest (SSoPI).

The SAU will prepare a report, which will provide an evaluation of Warrington Borough Council’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the subsidy provided by Warrington Borough Council

On 30 March 2021, the Department for Transport (DfT) invited Local Transport Authorities in England (outside London), to submit expressions of interest in receiving funding to become a Zero Emission Bus Regional Area (ZEBRA), with £120m of funding available nationally in the 2021/22 financial year to support this scheme. The intention is to fund in the region of 500 new zero emission buses.

This forms part of a wider commitment made by the Government in 2020 to provide 4000 new zero emission buses, which was reaffirmed in the National Bus Strategy – Bus Back Better, which was published in March 2021.

The ZEBRA scheme allowed authorities to apply for up to 75% of the difference in cost between an electric and diesel bus and also up to 75% of the cost of the necessary infrastructure i.e. chargers. Warrington Borough Council (the Council) submitted, and was successful in its bid for funding to deliver up to 120 electric buses and associated infrastructure.

The Council’s Cabinet approved the acceptance of the ZEBRA funds and on the 13 February 2023 further approved the granting of a subsidy to Warrington Borough Transport Limited trading as Warrington’s Own Buses (WOB) in order to provide WOB with 105 electric buses and required chargers and charging infrastructure.

The proposal is that:

  • The Council will use its own funds and the ZEBRA funding to acquire 105 new electric buses, as well as all required chargers and energy infrastructure

  • The Council will transfer the buses and chargers to WOB for a nominal cost

  • WOB will own and become responsible for all assets

The proposed subsidy will contribute to the following policy objectives:

  • Increasing bus usage and the share of journeys made by bus in Warrington

  • Improving air quality across Warrington through reduced emissions from buses but also by shifting trips from the private car to bus services as they become more attractive to use, reducing carbon emissions from our transport network

  • Supporting delivery of the Council’s Local Transport Plan 4 and the work of the Borough’s Climate Emergency Commission

  • Further enhancing Warrington’s reputation as a place to live, work, and do business

  • Enabling WOB to offer a better service and in turn a genuine alternative to conventional travel by car

  • Supporting the Council’s two climate motions, one of which was to work towards all the Council’s activities being carbon neutral by 2030 (“the Declaration”)

The subsidy is therefore the full market value of the buses and the chargers and related infrastructure. The Council did engage in discussions with all operators in the borough of Warrington with a view to all taking part in the delivery and implementation of the ZEBRA scheme, however only WOB took up the offer of partnering to deliver the ZEBRA scheme.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning Warrington Borough Council’s proposed subsidy to Warrington’s Own Buses, please send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Please send your submissions to us at SAU-Warringtonbuses2023@cma.gov.uk, copying the public authority: asimpson@warrington.gov.uk.

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

  1. The SAU will only take your submission into account if it can be shared with WBC. The SAU will send a copy of your submission to WBC together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with WBC using the email address provided above.

  2. The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

  3. For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.

Contacts

Updates to this page

Published 25 July 2023
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