Operating a bus franchising and contracting system across Hertfordshire could run at a loss – and would cost up to £174m to set up – councillors have been told.

Currently, the vast majority of bus services across the county are run commercially, with operators setting routes and the frequency of services.

But a franchising model – like London and Manchester – would allow Hertfordshire County Council to plan a holistic network with integrated ticketing.

Officers at the county council have been looking at how a franchise approach could operate in Hertfordshire.

At a meeting of the highways and transport cabinet panel on Wednesday, March 12, it was agreed that a franchise approach “would bring benefits and improvements across the bus network in the county”.

However, set-up costs could range between £14m and £174m, with the larger sum including a fleet of electric buses.

It was estimated that annual operating costs would be around £62m. Income estimates would range between an annual operating deficit of £18m and a profit of £2m.

Presenting the report, director of transport, waste and environment Simon Aries said the reality was that it was not affordable for Hertfordshire at the moment.

He said that from an officer perspective they would be “absolutely in favour of franchising” – pointing to the control of the network it offered.

He recommended that further reports were presented in future that could include cheaper alternatives or franchising in specific geographical areas.

The cheaper option presented in the report would use the rolling stock of existing operators rather than the purchase of a new EV fleet.

At the meeting executive member for highways ad transport Cllr Phil Bibby acknowledged that franchising would not be as “cheap and easy” as they had thought.

“I would love to do it,” he said. “But unfortunately practically speaking – financially speaking – it’s not something we can commit to at the moment.

“But it’s something we definitely want to keep in view, because it would be the answer to all our ills and bus transport I am sure and [would] get people back on to buses."

Liberal Democrat Cllr Stephen Giles-Medhurst suggested there could be a cheaper route to franchising without an EV fleet, adding that getting people back on to the bus network would require a reliable system, with information about services on bus shelters and reasonable fares.