Contract tendering brings changes of operator to two local services

The results of the tendering process for local bus contracts to start on 26th October, recently published by Lancashire Council Council, reveal some changes to Lancaster area services. The council is required by law to seek fresh tenders for contracted bus services from time to time and as a result two local routes will see a change of operator later this year.

Service 18, the “East City Circular”, currently operated by Stagecoach, will be run by Lonsdale Buses on Monday to Saturday, although the Sunday service will remain with Stagecoach. The Bus Users’ Group has a particular interest in this service dating back to 2015, when Lonsdale, then trading as “Kirkby Lonsdale Coach Hire” reduced its commercial service over the route to just five journeys a day. The County Council at the time claimed that it had no money to pay for the full service to be continued, but the Bus Users’ Group, working with local city councillors, uncovered a fund of over £500,000 in “developer contributions” paid by the developers of new housing in the area that was intended to not only support the bus service, but actually to enhance it.

Members of the Group, together with Stagecoach managers and local councillors at the launch of the revived service 18 at Williamson Park in 2017

Mich of the funding had been diverted to other projects and it was only after a lengthy campaign, involving Lancaster City Councillor Tim Hamilton-Cox and County Councillors, Gina Dowding and Lizzi Collinge and with the help of Cat Smith MP that the County Council could be persuaded to put what money was left to the purpose for which it was intended. The contract for the revived service, which began in 2017, was awarded to Stagecoach, which has operated it successfully ever since.

Services 88 and 89 Lancaster to Knott End

Stagecoach buses will return to Glasson Dock when the new contract starts in October

These services change hands in the opposite direction, with operation passing from Lonsdale Buses to Stagecoach. Co-incidentally, Lonsdale Buses (then Kirkby Lonsdale Coach Hire) took over the route from Stagecoach at about the same time as service 18 changed hands, although the “Stagecoach” involved was actually Stagecoach Merseyside and South Lancs, which ran the service from its Fleetwood depot. This time round the service will be run by Stagecoach Cumbria & North Lancs from its Morecambe depot.

Service 89 is the long-standing route between Lancaster and Knott End, with service 88 being added in 2023 using Bus Service Improvement Plan funding to provide a link to Garstang from the villages served.

Other services

The tendering exercise included new contracts for service 8 and 9 in Lancaster, service 51 between Carnforth and Silverdale, the evening service on the 81, and the Sunday services on the 7, 10, 11, 18, 81, and 82 although none of these contracts has changed hands.

Two services will be split between operators. Service 18 will be run by Stagecoach on Sunday and Lonsdale Buses the rest of the week, and Stagecoach will continue to provide the evening service on the 81 to supplement the daytime journeys run by Lonsdale Buses.

What does it all cost?

The county council is required to publish the results of the tendering process from which it is possible to gain an idea of how much money is required to sustain non-commercial bus routes in the county.

The annual value of the six contracts comes to just over £1,000,000, ranging from £37,000 for the Sunday service on the 7,10,11 and 18 to £588,000 for the Lancaster to Knott End service. The actual cost to the county council is lower than this, as in most cases all income accruing to the services from passengers’ fares and concessionary pass reimbursement is deducted. The Council also receives Bus Operators’ Support Grant for contract services from central government, which in 2025/6 totalled £1.87m for the whole county.

The document “Tender Results for Local Bus Services 2025” is available on this link.

LONSDALE BUSES REMOVES THROUGH FARES

Buses will continue to run through to Skipton, but passengers must re-book

Some passengers using bus services between Lancaster, Settle and Skipton will see an increase in their fares from 1st September. Here’s why.

Complicated.

The cross-country bus service between Lancaster and Skipton, run by Lonsdale Buses, is operated in a curious way. Legally, it is three separate services: Lancaster-Kirkby Lonsdale / Kirkby Lonsdale – Settle / and Settle – Skipton, with each section having a different service number, either 81/82, 581 or 580. One reason for this is that by keeping the services separate in this way they can be operated under the less-restrictive rules on the hours that bus drivers can work that apply to bus routes less than 50km in length. It also means that the buses themselves do not need to be fitted with tachographs. This is a common practice throughout the country with longer bus routes, although in most cases the same service number is used on each section.

The financial arrangements are complicated too. Lancashire County Council provides support for the 81/82 north of Hornby, the Kirkby Lonsdale – Settle service is supported by North Yorkshire Council, whilst the remaining sections are run commercially by the bus company.

Through Fares

Despite these complications, the buses have continued to run a through service between Lancaster and Skipton and to all intents and purposes it has been regarded as a through route. Lancashire’s timetable and the Dales Bus website market the route as the “Craven Connection” and at one time this branding was carried by at least one bus used on the service.

The “Craven Connection” at Settle in 2016

Fares

From its inception as a through service there were through fares. In 2018, for example, a single ticket from Lancaster to Skipton cost £9.90, with a return just 10p more at £10. However, in recognition of the fact that it is legally three separate routes, holders of concessionary bus passes were required to re-present their cards to the driver at Kirkby Lonsdale and Settle on every journey.

When the government’s English National Fares Cap was introduced in January 2023 it reduced the fare to £2, which was increased to £3 in January this year. A journey from Lancaster to Skipton then cost just 30% of what it did in 2018.

Everyone to re-book

The £3 fare cap means that bus companies cannot increase most of their fares to meet rising costs and must rely on compensation payments from the government for participating in what is a voluntary scheme.

Lonsdale Buses has now decided that the economics of operating these services means it must now treat them as separate as far as the fares cap is concerned, just as it does with concessionary passes. From 1st September, passengers making through journeys will have to re-book at Kirkby Lonsdale and/or Settle and pay a maximum of £3 each time. A journey from Lancaster to Settle will cost a total of £6 and to Skipton £9.

In a statement on it’s website the company explained that it is developing a “Day Saver” ticket that will reduce the cost for passengers making longer journeys, although it is unclear whether this will be launched before the changes take effect.