The Combined Authority takes ownership of five depots as First Bus secures the Bramley contract covering Leeds services from May 2027.
FirstGroup has sold five bus depots to the West Yorkshire Combined Authority and agreed to sell it a fleet of 330 buses, in a £109m deal announced on Monday 2 November. The Aberdeen-based operator also confirmed it has been awarded the franchise contract for its Bramley depot, which covers the Leeds area, along with a second in Huddersfield. The two contracts, part of the first tranche of West Yorkshire bus franchising, are expected to bring the company about £40m a year in combined sales from May 2027.
Why This Matters For Leeds
Public ownership of depots and buses gives the Combined Authority lasting control of the assets that keep Leeds moving, whoever runs the services. For employers across Leeds, the Bramley contract keeps a familiar operator in place through the switch to franchising.
How the £109m deal works
The depot sales have already completed. The buses will change hands in stages as each of the three franchise tranches goes live, currently planned for May 2027, January 2028 and October 2028. The fleet is made up of 251 diesel and 79 electric vehicles. Until each switchover, First Bus will keep running its existing commercial routes from the depots, leasing them back at a peppercorn rent.
FirstGroup expects a post-tax gain of about £30m on the depots and around £55m of cash in its 2027 financial year. About 130 buses will move to other parts of the group once the depots transfer.
Both contracts run for a core five years with an option of two more. The Combined Authority keeps the revenue risk and sets service levels while FirstGroup runs the buses.
The Bramley depot has already been partly electrified and its contract will use diesel and electric buses. FirstGroup will keep the diesel fleet there, valued at about £9m, for the contract’s term. It will also electrify its Bradford and Huddersfield depots before franchising starts, at the Combined Authority’s cost.
Graham Sutherland, chief executive of FirstGroup, said: “We are delighted to have reached an agreement with regards to the sale of our assets and secured these important franchise contracts. We look forward to drawing on our scale, expertise and strong operational track record to deliver high-quality, sustainable bus services in partnership with the West Yorkshire Combined Authority.”
Next steps for West Yorkshire bus franchising
Monday’s agreement puts figures on contracts signed at the start of September, when First West Yorkshire was chosen to run services registered to the Bramley and Huddersfield depots and Transdev Blazefield took Dewsbury.
The Weaver Network, the region’s franchised bus service, is due to launch in spring 2027 and spread across West Yorkshire in phases to the end of 2028. More than 80% of the network is currently run by private operators that decide routes, frequencies and timetables. How many more buses FirstGroup sells will depend on the contracts it wins in the second and third tranches of West Yorkshire bus franchising.
- Learn more about FirstGroup: firstgroupplc.com
Sources: FirstGroup plc regulatory announcement, Sale of assets and bus franchise contract awards in West Yorkshire, 2 November 2026; FirstGroup news, First Bus chosen to operate services on West Yorkshire’s Weaver Network, September 2026
