Coventry Conservatives are demanding full transparency from West Midlands Mayor Richard Parker over the acquisition of National Express West Midlands, involving assets valued at around £102 million, and the potential financial consequences for Coventry taxpayers and bus passengers.
The West Midlands Combined Authority (WMCA) is taking control of National Express West Midlands after its parent company, Mobico, decided to exit the business.
The assets being transferred are valued at around £102 million, with Mobico expecting approximately £24 million in upfront residual proceeds. The Government is also providing £11.5 million of new funding to support the transition. However, this also means that West Midland Ratepayers will take on £78 million of liabilities including a bus pension scheme deficit of £53 million. With inflation increasing and therefore pensions this presents a serious financial risk. Previously National Express (Mobico) have had to put in between £7.5 to £9.5 million in annual top ups just to keep the deficit stable.
The acquisition will transfer the business, operations, employees and other liabilities into the public sector as Mayor Richard Parker presses ahead with plans to introduce bus franchising across the West Midlands.
Coventry Conservatives say maintaining reliable bus services is essential, but residents deserve to know the full financial implications and what safeguards are in place to protect taxpayers.
Cllr Mattie Heaven, Deputy Leader and spoke person of the Coventry Conservative Group, said:
“Buses are an essential service for thousands of people across Coventry, and protecting those services must be a priority. But taxpayers should not be expected to take on potentially significant financial risks without complete transparency.
“We are talking about assets valued at around £102 million. Richard Parker needs to explain clearly what Coventry residents are being asked to underwrite, what liabilities are being transferred to the public sector and what the long-term cost of this decision could be.
“Coventry families are already facing considerable pressure on household finances. They need reassurance that this will not ultimately mean higher fares, reduced services or additional financial pressure being passed down to Coventry City Council and local taxpayers.
“There is also a fundamental question: if the costs of operating these services are higher than anticipated or the pension deficit increases, who picks up the bill?”
Coventry Conservatives are calling on the Mayor and WMCA to publish the full financial case for the acquisition, including the liabilities being transferred, projected operating costs and the potential exposure of the region’s constituent councils.
Cllr Heaven added:
“Keeping Coventry connected is vital, but every pound of public money must be spent responsibly.
“If this acquisition is necessary to deliver the Mayor’s franchising plans, he must demonstrate that it represents value for money and explain why this approach is in the best interests of passengers and taxpayers.
“Coventry residents should not be handed an open-ended financial commitment without knowing the true cost. They deserve transparency and clear answers from the Mayor.”
