Warwickshire County Council is to privatise the maintenance and replacement of its 300 bus shelters later this year.

The transport authority is looking to save the approximately £10,000 per year difference between the cost of their upkeep and advertising revenue brought in by handing over all aspects to an external company.

A report put together by officers – the council's employed professionals – details how all cleaning, repairs and replacements are carried out by the council.

It is also responsible for the bills that come from district and borough councils for rates in relation to the advertising that currently appears on 83 of the shelters, revenue that is used to offset the costs. 

The council's bills for bus shelters in 2024-25 totalled £94,000, £25,000 over budget, but the advertising revenue came in at £86,000, £27,000 more than had been anticipated, leaving a shortfall of £8,000.

The council has budgeted to lose £10,000 on this in the financial year 2025-26, the same position it took ahead of 2024-25.

The current contract runs out in October and while there is expected to be a short extension while a new deal is sorted out, permission has been sought from and granted by portfolio holder for finance and property Cllr Stephen Shaw for the new deal to outsource the lot with the council hopeful of getting some financial kickback from the winning bidder in the long run with "revenue expected to grow further through strategic expansion of both digital and paper advertising on shelters".

Cllr Shaw this week signed off the start of the procurement process for a 10-year contract with the potential for a five-year extension based on performance. It is expected to be worth £2.1 million. 

The report adds: "Early market engagement with suppliers has confirmed that the marketplace has evolved and is now able to offer councils a more holistic service.

"Contractors are willing to take full responsibility for the planning process and payments of non-domestic rates, and have the capability to clean, maintain and service all shelters, not just those with advertising panels.

"In addition, contractors offer 24/7 responses to call-outs and replacement and refurbishment of shelters reaching the end of their serviceable life can be included in the contract specifications.

"The marketplace has moved away from paper advertising, being more focused on digital adverts which can generate significantly more revenue, although paper advertising still has a place in the market.

"The aim is to maximise income generation by increasing the number of advertising panels, both digital and paper across the county.

"Within the first five years of the contract the expansion of digital to a minimum of 50 panels and paper to around 100 panels should generate sufficient revenue to provide the contractor with income over and above the service costs and to provide the council with an income to support services."