Bedfordshire bus boss warns of company closures

Two Luton buses - the number 35 and the number 3 - are to be withdrawn by operator Grant Palmer Buses

A bus company boss has warned operators could go out of business in the next 12 months because of lower passenger numbers and rising costs.

David Shelley, of Grant Palmer Buses Ltd of Flitwick in Bedfordshire, said it was running at 73% of the number of passengers it was carrying in 2019.

It will axe two Luton services that have not recovered to pre-Covid levels.

A Department for Transport spokesman said it was "committed to investing £3bn into bus services by 2025".

David Shelley said while some services had seen a rise in passenger numbers this was not enough to make up for lower numbers overall

The family-owned company plans to withdraw two Luton services, the 3 and 35, from 6 June.

It said its diesel costs had gone up by 150%

Mr Shelley, director, said: "Cost pressures are hitting us from every angle.

"Labour costs have gone up significantly and we're recruiting heavily, but in order to get the staff in place we're having to push our wage cost up and they've gone up in Luton, by 25% year on year."

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He said putting up fares was not an option, because "the cost of living crisis is hitting everyone and the last thing they want from me is a bus fare increase".

Shahana Begum is worried about the impact of the service closure on elderly Luton residents

The BBC spoke to passengers using the 35 service.

Shahana Begun said: "It's a very important, especially for the elderly who they rely on this service and people use it to go to town and do their regular shopping.

Axing it would effect "vulnerable" elderly people - "it will be probably be an anxiety for them".

Marc Scheimann has a free bus pass due to a disability and relies on buses to get around

Marc Scheimann said: "It is absolutely vital and critical to the people who live in this neighbourhood and on a day when inflation hits 9%, they're having to choose between heat and food and now taxi fares to pick up their provisions.

The 35 serves a hilly area and trying to walk up the inclines "is a struggle" for many of the elderly people who travel on the service, he said.

Anne McAvoy said those without a car or family depend on the service to get to the shops

Anne McAvoy said: "It's important they keep this little bus going.

"The taxi to town and back, you're talking about £10 and that's before you start your shopping."

Mr Shelley said the "typical business are running on a profit margin of five to 10% - if you lose 10% of your passengers, you've lost your profit"

Mr Shelley said: "The majority of bus companies are well-run, but we can only run services that can meet the cost of revenues... inevitably there will be less buses running in 12 months time and some of the bus companies are probably going to cease trading altogether."

A spokesman for the Department for Transport said: "We have committed to investing £3bn into bus services by 2025, including on improving fares, services and infrastructure."

He said Bedfordshire had received £0.8m since March 2020, including £549,932 from the Local Transport Authority Covid Bus Services Support Grant.