TfL to begin talks on publicly owned bus company, could reshape London bus services and bring profits back to transport for Londoners across the capital
The proposals, enabled by the Bus Services Act, will be discussed with the 16 private operators later this month as TfL moves towards public ownership.
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Transport for London announced it will begin talks later this month with the city’s 16 private bus operators about proposals for a publicly owned bus company. The discussions mark the first concrete step towards a model that could change how the capital’s 675 routes are managed.
Legal framework and political backdrop
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The plan is possible because the Bus Services Act, passed by the Labour government last year, lifted the long‑standing prohibition on local authorities establishing their own bus firms. Mayor Sadiq Khan included a public‑ownership pledge in his 2024 election manifesto, saying it would allow any surplus to be reinvested in transport infrastructure.
TfL’s business plan, released earlier this year, described the proposal as a way to “reimagine London’s bus network” and improve innovation, efficiency and accountability. A TfL spokesperson told MyLondon that the agency is assessing how the new structure could support customers and the workforce.
Industry response
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Unite welcomed the development. Regional officer Nadine Edwards said the move would stop money flowing from Londoners and TfL to private firms and would address what she described as a “race to the bottom” culture.
This will stop money flowing from Londoners and Transport for London to private companies who preside over a race to the bottom culture that impacts drivers and services.
Nadine Edwards, Unite regional officer
Labour’s transport spokesperson on the London Assembly, Elly Baker, also praised the step, arguing that public ownership could give TfL greater control over reliability, safety and the reinvestment of any operating surplus.
By contrast, Festus Akinbusoye, the Conservative candidate for Mayor of London, warned that the proposal would add “higher costs and more bureaucracy” without improving service quality. He urged TfL to focus on fare evasion and service reliability rather than restructuring ownership.
Next steps and resident impact
TfL said it will develop detailed proposals over the coming weeks and hold a public consultation after the operator discussions. When existing franchise contracts end, the authority could transfer those routes to the new public operator, meaning any profit would stay within the transport system.
Residents can expect to see information on the consultation website and may be invited to comment on specific route changes. The timeline for any transfer depends on when current contracts expire, which varies across the network.
Questions this report answers
+What does the Bus Services Act allow TfL to do?
The Bus Services Act, passed in 2023, removed the ban on local authorities setting up their own bus companies. This legal change enables TfL to develop proposals for a publicly owned bus operator, a step that was not possible under previous legislation.
+When will TfL start talks with the bus operators?
TfL will begin discussions with the 16 private bus operators later this month, according to a MyLondon report. The talks are intended to assess the feasibility of bringing franchised services into a publicly owned company.
+Which groups support and which oppose the publicly owned bus company?
Trade Union Unite and Labour’s transport spokesperson Elly Baker have welcomed the plan, citing benefits for workers and reinvestment of profits. Conservative mayoral candidate Festus Akinbusoye opposes it, arguing it would increase costs and bureaucracy without improving service.
+How could the change affect London bus users?
If TfL creates a public bus operator, contracts with private firms could be transferred when they expire, meaning any operating surplus would stay within the public system. Residents may see changes to routes or service arrangements after a public consultation and the rollout of the new model.
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