Nottingham City Council has approved a new public transport discount scheme, offering a 20% reduction on annual season tickets for bus and tram services in the Greater Nottingham area.
This initiative, funded through a £304,000 grant from the Department for Transport’s (DfT) Bus Service Improvement Plan (BSIP), will be available to commuters from 1 October 2024 to 31 March 2025.
The scheme is designed to be offered through employer salary sacrifice arrangements, making public transport more affordable for workers across both the public and private sectors. The decision, approved under the council’s delegated authority, aims to support local businesses by improving recruitment and retention through better staff benefits, while also addressing broader environmental and economic goals.
The scheme will subsidise 20% of the cost of annual travel passes, helping to reduce the financial burden on commuters.
Public transport operators, including Nottingham City Transport, Robin Hood, Trentbarton, and Stagecoach, will receive subsidies from the City and County Councils to cover the cost of the discounts.
Nottingham City Council will fund 30% of the cost for Nottingham City Transport and Robin Hood services, while Nottinghamshire County Council will cover the remaining 70% – and 100% for all other operators, including trentbarton, CT4N, Vectare, Stagecoach and Nottingham Express Transit ( NET ), the two councils will fund 100% of the subsidy costs.
This initiative supports both the cost of living crisis and environmental goals. The council sees the scheme as a means to encourage commuters to shift from private car use to public transport, alleviating congestion, improving air quality, and contributing to local efforts to reduce carbon emissions.
One of the primary aims of this initiative is to strengthen the financial sustainability of Nottingham’s bus network, which has faced challenges since the COVID-19 pandemic. By increasing passenger numbers and retaining current users, the council hopes to avoid further public investment in essential bus services. According to a recent KPMG report, investment in bus services can deliver high value for money, with bus commuter wages contributing £1.8 billion in gross value added (GVA) to the East Midlands economy.
The scheme will be closely monitored, and provisions are in place to terminate it early if uptake exceeds available funding. To minimise financial risks, the council has included a 10% increase in demand in its financial modelling. In the event of oversubscription, operators will be notified with a one-month warning if the scheme needs to be discontinued to prevent overspending.
The discount scheme is expected to deliver a range of benefits for the local community. For commuters, it provides financial relief during the cost-of-living crisis. For businesses, the scheme offers a new incentive to attract employees, especially in areas with limited parking facilities. By encouraging employees to use public transport, companies can reduce the strain on parking and help support sustainable staff travel plans.
Additionally, the scheme aligns with national and local policy objectives to tackle congestion and improve air quality. It is also expected to support the recruitment of new passengers to the bus network, benefiting the 2,000 local workers employed in the public transport industry.
The funding for the scheme was not part of Nottingham’s original BSIP plan, but the DfT approved the amendment following a request from the city council. To ensure accountability, the scheme will be managed under the existing governance structures for the Greater Nottingham Bus Service Improvement Programme. Regular monitoring will ensure that the funds are used effectively, with a structured review process to assess the scheme’s impact.
Nottingham City Council’s approval of the scheme follows wide consultation with local stakeholders, including public transport operators and Nottinghamshire County Council, all of whom expressed strong support for the initiative. Legal, finance, procurement, and equality reviews have also been completed, with no significant concerns raised.
