Legalize / United Kingdom / Public General Act

Transport Act 1985

Type Public General Act

Publication 1985-10-30

Last updated 2026-02-24

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(d) references to a joint undertaking of which any council’s bus undertaking forms part shall be read in accordance with section 67(6) of this Act; and

(e) references to—

(i) a public transport company;

(ii) a public transport company’s controlling authority;

(iii) a composite authority;

(iv) component councils of a composite authority; and

(v) an associated company;

shall be read in accordance with the relevant provisions of section 72 of this Act. and

(f) references to a district council shall be read, in relation to Wales, as references to a county council or county borough council, and references to a district shall be so read as references to a county or, as the case may be, county borough.

Part V — Financial Provisions

Expenditure on public passenger transport services

88

(1) Any power conferred on any authority responsible for expenditure on public passenger transport services to enter into agreements providing for service subsidies (however framed, and whether arising under this Act or under any other enactment) shall be subject to sections 89 to 92 of this Act.

(2) It shall be the duty—

(a) of all such authorities, in exercising and performing their functions with respect to securing the provision of public passenger transport services; and

(b) of all—

(i) local authorities in England and Wales, or,

(ii) education authorities in Scotland or local authorities exercising social work functions in Scotland,

in relation to any expenditure on transport for the purposes of or in connection with the exercise and performance of any of the functions set out in subsection (2A);

to co-operate with one another so as to secure, in the interests of the ratepayers of their areas, the best value for money from their expenditure on public passenger transport, taken as a whole.

(2A) The functions referred to in subsection (2)(b) are—

(a) in relation to local authorities in England and Wales, their education functions (as defined in section 579(1) of the Education Act 1996) and their social services functions;

(b) in relation to Scotland, their functions as education authorities and their social work functions.

(3) In subsection (2)(b) “local authority” means—

(a) in relation to England and Wales, a county council, a metropolitan district council, a non-metropolitan district council for an area for which there is no county council, a county borough council, a London borough council, and the Common Council of the City of London (in their capacity as a local authority); and

(b) in relation to Scotland, an authority who are a local authority for the purposes of the Social Work (Scotland) Act 1968.

(4) It shall be the duty of all authorities mentioned in subsection (2) above to afford to one another such information as may be reasonably required for the purpose of the co-operation required of them under that subsection.

(5) Where, as a result of any such co-operation, any such authority—

(a) incur expenditure which they would not otherwise have incurred; or

(b) receive less revenue than they would otherwise have done;

that authority may, by notice to the other authority or authorities concerned, require that other authority or (as the case may be) those other authorities to reimburse the amount of that expenditure or of that reduction in revenue.

(6) If—

(a) any amount in respect of which, in accordance with a notice under subsection (5) above, any such authority or authorities are required to reimburse another such authority; or

(b) where two or more such authorities are required by any such notice to reimburse another such authority, the share of that amount payable by each authority concerned;

is not determined by agreement between both or all the authorities concerned within six months of the receipt of the notice or such longer period as may be agreed between them, that amount and (where paragraph (b) above applies) the share payable by each authority concerned shall be determined by an arbitrator or, in Scotland, by an arbiter.

(7) Any such arbitrator or (as the case may be) arbiter shall be appointed either by agreement between the authorities concerned or, in default of such agreement, by the President of the Chartered Institute of Public Finance and Accountancy.

(8) References in this Part of this Act to authorities responsible for expenditure on public passenger transport services are references to—

(a) Passenger Transport Executives;

(b) non-metropolitan county and district councils in England and Wales; and

and in sections 89 to 92 of this Act include references to Transport for London in relation to any exercise of its power under section 156(2) or (3) (general powers) of the Greater London Authority Act 1999 which by virtue of section 65(3) of this Act is subject to those sections.

Obligation to invite tenders for subsidised services

89

Provisions supplementary to section 89

90

Exceptions from section 89

91

General provisions with respect to the exercise of service subsidy functions

92

(1) An authority responsible for expenditure on public passenger transport services shall, in the exercise and performance of their functions in relation to agreements providing for service subsidies, have regard to the interests of the public and of persons providing public passenger transport services in their area.

(2) Regulations under this section—

(a) may make further provision for regulating the exercise and performance by authorities responsible for expenditure on public passenger transport services of their functions in relation to agreements providing for service subsidies; and

(b) may make provision for limiting to an amount specified in the regulations the aggregate amount of the service subsidies any such authority may agree to pay under any one such agreement; and

(3) The provisions of sections 89 to 91 of this Act shall be subject to this section and any provision made by regulations under this section.

Travel concession schemes

93

(1) Any local authority, or any two or more local authorities acting jointly, may establish a travel concession scheme for the provision of travel concessions on journeys on public passenger transport services—

(a) between places in the principal area covered by the scheme;

(b) between such places and places outside but in the vicinity of that area; or

by operators of such services participating in the scheme.

(2) For the purposes of this section, the principal area covered by a scheme under this section is—

(a) the area of the local authority concerned or, where two or more such authorities are concerned, the area comprising the areas of both or all those authorities; or

(b) if an area comprised within the area which would be the principal area under paragraph (a) above is specified in the scheme as being the principal area to which the scheme applies, the area so specified.

(3) Any travel concession scheme established under this section shall define—

(a) the travel concessions which are for the time being to be provided by operators participating in the scheme;

(b) the description of persons eligible in accordance with subsection (7) below to receive travel concessions under any such scheme who are for the time being to qualify for travel concessions provided under the scheme; and

(c) the dates in any year currently adopted as the dates on which operators may be admitted to participate in the scheme under section 96 of this Act (referred to below in this section as the standard admission dates);

and may include particulars of any other arrangements for the time being adopted by the authority or authorities concerned in establishing the scheme with respect to the operation, scope and application of the scheme.

(4) Any such scheme may define the standard admission dates by specifying particular dates, or by referring to dates of any specified description or separated by intervals of any specified length; but those dates, however determined, must not be separated by intervals of a length exceeding such period as may be prescribed.

(5) Arrangements adopted by the authority or authorities concerned in establishing any such scheme with respect to the operation, scope and application of the scheme (including the matters specifically mentioned in paragraphs (a) to (c) of subsection (3) above) may differ for different descriptions of concessions or services to which the scheme applies.

(6) Subject to section 94 of this Act, where an operator participating in any such scheme in respect of any services operated by him provides travel concessions in accordance with the scheme for persons travelling on those services, the authority responsible for administration of the scheme or (as the case may be) the authorities so responsible in such proportions respectively as they may agree among themselves shall reimburse that operator for providing those concessions.

(7) The persons eligible to receive travel concessions under any such scheme are—

(a) persons who have attained the age of sixty years;

(b) persons whose age does not exceed sixteen years;

(c) persons whose age exceeds sixteen years but does not exceed eighteen years and who are undergoing full-time education;

(d) persons who are blind;

(e) persons who are partially sighted;

(ea) persons who are deaf;

(eb) persons who are without speech;

(ec) persons who have a disability, or have suffered an injury, which has a substantial and long-term adverse effect on their ability to walk;

(ed) persons who do not have arms or have long-term loss of the use of both arms;

(ee) persons who have a learning disability, that is, a state of arrested or incomplete development of mind which includes significant impairment of intelligence and social functioning;

(ef) persons who, if they applied for the grant of a licence to drive a motor vehicle under Part III of the Road Traffic Act 1988, would have their applications refused pursuant to section 92 of that Act (physical fitness) otherwise than on the ground of persistent misuse of drugs or alcohol;

(eg) any person travelling as the companion of a person who—

(i) is eligible to receive travel concessions by virtue of any other paragraph of this subsection; and

(ii) requires the assistance of a companion in order to travel on journeys on public passenger transport services;

(f) such other classes of persons as the Secretary of State may by order specify.

(8) In this section “local authority”—

(a) means

(i) a county council in England,

(ii) a council of a non-metropolitan district in England comprised in an area for which there is no county council,

(iii) the council of a county or district in ... Wales or

(iv) a regional or islands council in Scotland; and

(b) includes also, in relation to England and Wales, an Integrated Transport Authority for an integrated transport area , a combined authority and a combined county authority.

(9) Unless the context otherwise requires, references in this section and in the provisions of this Part of this Act relating to schemes under this section to the authority or authorities responsible for administration of a scheme under this section are references—

(a) except in a case to which paragraph (b) below applies, to the authority concerned in establishing the scheme or, where two or more authorities are so concerned, to both or all those authorities acting jointly; or

(b) in relation to England and Wales, a metropolitan county passenger transport authority where the authority or one of the authorities concerned in establishing the scheme are an Integrated Transport Authority for an integrated transport area in England and Wales, to the Passenger Transport Executive for that Authority’s area or (as the case may require) to that Executive and the other authority or authorities so concerned acting jointly; or

(10) Where an Integrated Transport Authority or a Passenger Transport Authority have established a scheme under this section, whether alone or jointly with any other authority or authorities, they shall notify the Passenger Transport Executive for their area of any proposal to vary the scheme, giving particulars of the proposed variation.

Administration of schemes: reimbursement, etc.

94

(1) Regulations under this section may make provision with respect to any of the following matters—

(a) the factors to be taken into account by the authority or authorities responsible for administration of a travel concession scheme under section 93 of this Act in determining the aggregate amount that may be made available for the purpose of reimbursing operators participating in the scheme for providing travel concessions during any period;

(b) the determination by the authority or authorities so responsible of the amounts to be paid to individual operators participating in the scheme, or to any class of such operators, by way of reimbursement for providing such concessions;

(d) the provisions or descriptions of provisions that are to be or (as the case may be) may or may not be included in arrangements agreed with operators or adopted by the authority or authorities so responsible with respect to participation of operators in the scheme; and

(e) the terms on which and the extent to which the authority or authorities so responsible may employ any person as their agent for the purposes of the administration of the scheme and the descriptions of persons who may be so employed.

(2) Subject to any provision of regulations made by virtue of subsection (1)(d) above and to the following provisions of this section, the arrangements with respect to participation of operators in any such scheme shall be such as may from time to time be agreed between the authority or authorities responsible for administration of the scheme and individual operators.

(3) Subject to—

(a) any provision of regulations under subsection (1) above;

(b) any modifications that may by virtue of any provision of regulations made by virtue of paragraph (d) of that subsection or in accordance with section 96 of this Act be agreed between the authority or authorities responsible for administration of any such scheme and any individual operator; and

the arrangements with respect to reimbursement and terms of withdrawal from participation in the scheme applicable to operators of eligible services participating in the scheme shall be such as the authority or authorities responsible for administration may from time to time adopt and must be the same in the case of all such operators.

(4) For the purposes of the provisions of this Part of this Act relating to schemes under section 93 of this Act, “eligible service” means—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) . . . a service using public service vehicles of a class specified in an order made by the Secretary of State (as respects England) or the National Assembly for Wales (as respects Wales).

(5) The arrangements currently adopted by the authority or authorities responsible for administration of any such scheme with respect to reimbursement of operators of eligible services participating in the scheme are referred to below in this Part of this Act, in relation to that scheme, as the current reimbursement arrangements for eligible service operators participating in the scheme.

(6) In relation to operators participating in any such scheme, references in this section to arrangements with respect to reimbursement are references to conditions of entitlement of such operators to, and the method of determination and manner of payment of, reimbursement in respect of travel concessions provided under the scheme.

Publicity requirements for schemes and reimbursement arrangements

95

(1) On or before the date on which a scheme under section 93 of this Act comes into operation or, where it comes into operation on different dates with respect to different concessions to be provided under the scheme, on or before the first of those dates—

(a) the authority or authorities concerned in establishing it shall publish particulars of the scheme; and

(b) the authority or authorities responsible for administration of the scheme shall publish particulars of the current reimbursement arrangements for eligible service operators participating in the scheme as they are to apply on initial establishment of the scheme;

in such manner, in either case, as the authority or authorities concerned think fit.

(2) Particulars of any subsequent variations shall be published—

(a) in the case of variations of the scheme, by the authority or authorities concerned in establishing the scheme; and

(b) in the case of variations of the arrangements, by the authority or authorities responsible for administration of the scheme.

(3) Following publication under subsection (1)(a) or (as the case may be) under subsection (1)(b) above of particulars of any scheme or arrangements—

(a) copies of the scheme or (as the case may be) of the arrangements (with any subsequent variations) shall be made available at the principal office of the authority or (as the case may be) of each authority concerned; and

(b) a copy shall be supplied to any person on request (whether at that office or by post) either free of charge or at a charge representing the cost of providing the copy.

(4) Where the authority or any of the authorities concerned in establishing a scheme under section 93 of this Act are an Integrated Transport Authority or a Passenger Transport Authority, they shall notify the Passenger Transport Executive for their area of any proposal to publish particulars of the scheme in advance of its coming into operation, giving the proposed date of publication.

Right of eligible service operators to participate in travel concession schemes

96

(1) Subject to the following provisions of this section, where any operator or prospective operator of an eligible service which runs or will run between places within the limits covered by any scheme under section 93 of this Act applies to the authority or authorities responsible for administration of that scheme to be admitted to participate in it in respect of that service, the authority or authorities in question shall be obliged to admit that operator to participation in the scheme in respect of that service as from any standard admission date under the scheme not later than the one next following—

(a) the end of such period as may be prescribed beginning with the date of his application; or

(b) the date on which the service begins;

whichever last occurs.

(2) The Secretary of State may, on the application of the authority or authorities responsible for administration of any such scheme, exempt the authority or authorities in question from the obligation under subsection (1) above in relation to any service or description of services; and the Secretary of State may at any time withdraw or vary any exemption granted under this subsection.

(3) An exemption may not be granted under subsection (2) above on the application of a Passenger Transport Executive, or on the joint application of authorities who include such an Executive, unless the application is made with the consent of the Integrated Transport Authority or, as the case may be, the Passenger Transport Authority for that Executive’s area.

(4) Subject to any regulations under section 94(1)(d) of this Act, where it appears to the authority or authorities responsible for administration of any such scheme, in the case of any operator or prospective operator of an eligible service who applies to be admitted to participate in the scheme in respect of that service, that fares currently charged or proposed to be charged by that operator for relevant journeys on that service include a special amenity element, the authority or authorities in question shall not be required by subsection (1) above to admit that operator to participation in the scheme in respect of that service unless that operator agrees to appropriate modifications of the current reimbursement arrangements for eligible service operators participating in the scheme.

(5) Subject to any such regulations, where it appears to the authority or authorities responsible for administration of any such scheme, in the case of any operator of an eligible service participating in the scheme, that fares currently charged by that operator for relevant journeys on that service include a special amenity element, the authority or authorities in question may by notice of not less than such period as may be prescribed exclude that operator from participation in the scheme in respect of that service unless before the end of that period that operator agrees to appropriate modifications of the current reimbursement arrangements for eligible service operators participating in the scheme.

(6) For the purposes of subsections (4) and (5) above fares for relevant journeys are to be regarded as including a special amenity element if they are significantly high in relation to the general level of fares for comparable journeys in the principal area covered by the scheme (within the meaning of section 93 of this Act).

(7) References in those subsections to appropriate modifications of the reimbursement arrangements there mentioned are references to such modifications of those arrangements as the authority or authorities concerned consider appropriate for providing reimbursement in respect of travel concessions provided for relevant journeys on the service in question by reference to the general level of fares mentioned in subsection (6) above instead of by reference to the actual fares charged (or proposed to be charged) for those journeys.

(8) For the purposes of this section “relevant journeys” are journeys on which travel concessions are to be provided under the scheme in question.

(9) For the purposes of this section and section 97 of this Act, references to a prospective operator of an eligible service are references to a person who has registered a local service under section 6 of this Act but is not yet operating that service.

Compulsory participation in travel concession schemes

97

(1) Subject to subsection (8) below, where the arrangements currently adopted by the authority or authorities responsible for administration of a scheme under section 93 of this Act with respect to the terms on which operators of eligible services may withdraw from participation in the scheme require such an operator to give notice before withdrawing from the scheme in respect of any such service, any such operator shall be obliged to provide any travel concessions required by the scheme on journeys on any such service in respect of which he is participating in the scheme until he gives the required notice of withdrawal and the period of notice has expired.

(2) Subject to the following provisions of this section, the authority or authorities responsible for administration of any such scheme may at any time by notice in writing served on any operator or prospective operator of an eligible service (including an operator already participating in the scheme) impose on him an obligation to provide travel concessions in accordance with the scheme on journeys on any such service operated by that operator to which the notice applies.

A notice under this subsection is referred to below in this Part of this Act as a participation notice.

(3) The power under subsection (2) above to serve a participation notice shall not be exercisable in relation to any such scheme until after the date (or whichever last occurs of the respective dates) of first publication under secdtion 95 of this Act of particulars of the scheme and of the current reimbursement arrangements for eligible service operators participating in the scheme as they are to apply on initial establishment of the scheme.

(4) An obligation imposed by a participation notice shall, subject to subsection (8) below and sections 98 and 99 of this Act, be effective in relation to any service to which the obligation applies as from the appropriate commencement date for that service until the end of such period beginning with that date as may be specified in the participation notice.

(5) Subject to subsection (9) below, for the purposes of subsection (4) above the appropriate commencement date for any service to which an obligation imposed by a participation notice applies is—

(a) the date immediately following the end of such period of notice as may be specified in the participation notice; or

(b) the date when the service begins;

whichever last occurs.

(6) Where it is proposed—

(a) to vary a scheme under section 93 of this Act; or

(b) to vary the current reimbursement arrangements for eligible service operators participating in any such scheme;

the authority or authorities responsible for administration of the scheme may, not less than such period before the variation is to take effect as may be prescribed, by notice served on any operator of any such service who is under an obligation under this section to provide travel concessions in accordance with the scheme, require him to indicate, within such period and in such manner as may be prescribed, whether or not he is willing to continue to participate in the scheme after the variation takes effect.

(7) Any notice under subsection (6) above shall give particulars of the proposed variation.

(8) Where in pursuance of subsection (6) above an operator indicates that he is not willing to continue to participate in the scheme after the variation takes effect, any obligation of that operator under this section to provide travel concessions in accordance with the scheme which was current at the date of the notice under that subsection and would still apart from this subsection be in force on the date when the variation takes effect shall cease on the latter date (without prejudice, however, to the service of a new participation notice).

(9) Where a notice is served on an operator under subsection (6) above the preceding provisions of this section shall apply, on and after the date when the variation in question takes effect, in relation to any obligation of that operator under subsection (2) above to provide travel concessions in accordance with the scheme in question which—

(a) was current at the date of the notice; and

(b) does not cease (by virtue of subsection (8) above or otherwise) before the date when that variation takes effect;

as if the latter date were the appropriate commencement date for the purposes of subsection (4) above for each service to which the obligation applies.

(10) The exercise of the power to serve a participation notice under this section on any person—

(a) by a Passenger Transport Executive; or

(b) by authorities responsible for administration of a scheme under section 93 of this Act who include such an Executive;

shall require the consent of the Integrated Transport Authority or, as the case may be, the Passenger Transport Authority for the Executive’s area.

Further provisions with respect to participation notices

98

(1) The authority or authorities by whom a participation notice is served on any person shall send to that person, together with the notice, a copy of—

(a) such particulars of the scheme to which the notice relates and of any variations of that scheme; and

(b) such particulars of the current reimbursement arrangements for eligible service operators participating in the scheme and of any variations of those arrangements;

as have been published under section 95 of this Act before the date of the notice.

(2) Subject to the following provisions of this section, a person on whom a participation notice has been served may apply to the Secretary of State for cancellation or variation of that notice on either or both of the following grounds, that is to say—

(a) that there are special reasons why his participation in the scheme in question in respect of the service or any of the services to which the notice applies would be inappropriate; and

(b) that any provision of the scheme or of any such arrangements as are mentioned in subsection (1)(b) above are inappropriate for application in relation to operators other than operators voluntarily participating in the scheme.

(3) Subject to subsection (4) below, an application under subsection (2) above may be made by notice in writing given to the Secretary of State before the end of the period of twenty-eight days beginning with the date of the participation notice.

(4) A person may not make such an application unless he has given notice in writing of his intention to do so to the authority or authorities by whom the participation notice was served—

(a) if a period allowed for that purpose is specified in the participation notice, before the end of that period; or

(b) in any other case, at any time before the date of the notice given to the Secretary of State under subsection (3) above.

(4A) But if the participation notice was served on the person by one or more authorities in England only—

(a) subsection (3) above shall have effect as if for “twenty-eight days beginning with the date of the participation notice” there were substituted “ fifty-six days beginning with the date provided for in relation to the participation notice by virtue of section 97(5)(a) above ”; and

(b) subsection (4) above shall have effect as if for paragraph (a) there were substituted—

(a) if the person is required by the participation notice to give a prescribed number of days' notice (or, if no number of days is prescribed, seven days' notice), at least that number of days before the date of the notice given to the Secretary of State under subsection (3) above; or

(5) Where on any such application the Secretary of State finds the ground mentioned in subsection (2)(a) above established, he may cancel the participation notice or (as the case may require) vary it by excluding from it any service operated by the applicant in respect of which he considers the applicant’s participation in the scheme would be inappropriate.

(6) Where on any such application the Secretary of State finds the ground mentioned in subsection (2)(b) above established, he shall cancel the participation notice unless he considers that a direction under subsection (7) below would meet the case.

(7) Where on any such application the Secretary of State does not cancel the participation notice, he may direct that the current arrangements for reimbursement of eligible service operators participating in the scheme shall apply in the case of the applicant or (as the case may require) in the case of any service operated by the applicant to which the participation notice applies with such modifications as may be specified in the direction.

(8) If the Secretary of State cancels a participation notice under subsection (6) above he shall give to the authority or authorities by whom the notice was served a notice in writing indicating in what respects the scheme or (as the case may be) the current reimbursement arrangements for eligible service operators participating in the scheme are inappropriate for application in relation to operators other than operators voluntarily participating in the scheme.

(9) Any obligation under section 97(2) of this Act which has come into effect before the determination of any application under this section with respect to the participation notice by which that obligation was imposed shall—

(a) cease to have effect, if the notice is cancelled; or

(b) have effect, if the notice is varied, subject to a corresponding variation;

on such date as may be specified by the Secretary of State in determining the application.

Release from compulsory participation

99

(1) The authority or authorities responsible for administration of a scheme under section 93 of this Act may at any time by notice in writing served on any operator who is under an obligation under section 97(2) of this Act to provide travel concessions in accordance with the scheme on journeys on any eligible service operated by him release him from that obligation in respect of that service.

(2) Subject to the following provisions of this section, any such operator may at any time by notice in writing apply to the Secretary of State to be released from that obligation in respect of any such service on the ground that the authority or authorities responsible for administration of the scheme have failed to comply with their obligation under section 93(6) of this Act.

(3) An operator may not make such an application unless he has given notice in writing of his intention to do so to the authority or authorities responsible for administration of the scheme not less than twenty-eight days before the date of the application.

(4) A notice under subsection (2) or (3) above shall give particulars of any alleged failures of the authority or authorities in question to comply with their obligation under section 93(6) of which the operator complains.

(5) On any such application the Secretary of State may, if he finds the applicant’s ground of complaint established, determine that the applicant’s obligation under section 97(2) shall cease on such date as may be specified in the determination.

Provisions supplementary to sections 96 to 99

100

(1) Regulations under this section may make provision as to—

(a) the maximum or (as the case may be) minimum period that may for the purposes of any provision of section 97 or 98 of this Act be specified in a participation notice;

(b) the form and contents of participation notices and other notices required for any purposes of sections 96 to 99 of this Act; and

(2) Where the Secretary of State cancels or varies a participation notice under section 98 of this Act after the obligation imposed by that notice has come into effect he may award compensation to the applicant under subsection (4) below if it appears to him that the applicant has suffered—

(a) in a case where the notice is cancelled, any loss attributable to his participation in the scheme in question; or

(b) in a case where the notice is varied by excluding from it any service operated by the applicant, any loss attributable to his participation in that scheme in respect of that service.

(3) Where on determining an application under section 99 of this Act the Secretary of State finds that the authority or authorities responsible for administration of the scheme in question have failed to comply with their obligation under section 93(6) of this Act, he may award compensation to the applicant under subsection (4) below if it appears to him that the applicant has suffered any loss attributable to that failure.

(4) In any case to which subsection (2) or (3) above applies the Secretary of State may by notice in writing require the authority responsible for administration of the scheme in question or (as the case may be) the authorities so responsible in such proportions as may be specified in the notice to pay to the applicant such an amount by way of compensation in respect of the loss there mentioned as may be so specified.

(5) The Secretary of State may if he thinks fit appoint a person to determine an application under section 98 or 99 of this Act on his behalf; and references in those sections and in subsections (2) to (4) above to the Secretary of State shall be read as including references to a person so appointed.

(6) Regulations under this section may prescribe the procedure to be followed in connection with applications under sections 98 and 99 of this Act and may in particular (but without prejudice to the generality of that) include provision—

(a) as to the conduct of any proceedings held in connection with any such application; and

(b) enabling the Secretary of State to require either the applicant or the authority or authorities responsible for administration of the scheme in question, or both or all of them, to pay such sum as the Secretary of State may determine towards any expenses incurred by him in connection with the determination of the application.

(7) Where a requirement under subsection (4) above is imposed on more than one authority, the liability of the authorities concerned to the applicant—

(a) shall extend to the whole of the amount specified in the notice imposing the requirement; and

(b) shall be both joint and several;

but if any such authority make any payment, in or towards the discharge of that liability, of an amount exceeding the amount representing any proportion specified in the notice as that authority’s share, that authority shall be entitled to recover an appropriate contribution (determined by reference to the proportions specified in that notice) from the other authority or authorities concerned.

(8) Any sums paid to the Secretary of State by virtue of subsection (6)(b) above shall be paid into the Consolidated Fund.

Enforcement of participation in travel concession schemes

101

(1) If during any period an operator of any service who is under an obligation under section 97 of this Act to provide travel concessions in accordance with a scheme under section 93 of this Act for persons travelling on that service systematically fails to comply with that obligation he shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(2) Where an offence under this section committed by a body corporate is proved to have been committed with the consent or connivance of, or to have been attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or a person who was purporting to act in any such capacity, he as well as the body corporate shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

(3) Where the affairs of a body corporate are managed by its members, subsection (2) above shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

(4) Proceedings for an offence under this section shall not, in England and Wales, be instituted except by the authority, or any one of the authorities, responsible for administration of the scheme in question or by or with the consent of the Director of Public Prosecutions (and any such authority who would not apart from this subsection have power to bring such proceedings shall accordingly have that power).

Application of Passenger Transport Executive's financial plan to expenditure on travel concessions under schemes

102

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Travel concessions apart from schemes

Subsidies for travel concessions

103

(1) The payments provided for under an agreement providing for service subsidies entered into by an authority responsible for expenditure on public passenger transport services may not include payments in respect of the provision of travel concessions except as provided below in this section.

(2) Subject to subsection (3) below, provision may be included in any such agreement for the making of payments by the authority in question to the person providing the service to which the agreement relates in respect of the provision of travel concessions on journeys on that service or any part of it for any description of persons eligible in accordance with section 93(7) of this Act to receive travel concessions under a travel concession scheme under that section.

(3) Subsection (2) above only applies where the concessions in question are not available, or not available to that description of persons, under any such scheme administered by the authority concerned or by that authority acting jointly with any other authority or authorities or under section 145A(1) or 145B(1) of the Transport Act 2000.

Travel concessions on services provided by Passenger Transport Executives

104

(1) A Passenger Transport Executive may not in exercise of their powers under section 10(1)(xiii) of the 1968 Act (power of Passenger Transport Executive to charge for services and waive their charges, etc.) provide travel concessions for persons travelling on any public passenger transport service provided by the Executive otherwise than in accordance with a scheme established under section 93 of this Act or in accordance with section 145A(1) of the Transport Act 2000, except where those concessions are provided under any agreement or arrangements under which the whole of the cost of providing those concessions is to be met by a person other than that Executive or the Authority for that Executive’s area.

(2) The approval of the Authority for an integrated transport area or a passenger transport area under section 15(2) of the 1968 Act (approval of Authority required for alterations by Executive in general level of charges and for reduction or waiver of charges by Executive) shall not be required for travel concessions granted by the Passenger Transport Executive for that area for persons travelling on any public passenger transport service provided by the Executive if those concessions are granted—

(a) in accordance with any scheme established under section 93 of this Act by any authority other than the Authority for that Executive’s area or (as the case may be) by authorities who do not include that Authority; ...

(aa) in accordance with section 145A(1) of the Transport Act 2000; or

(b) where that Executive’s area is in England and Wales, in pursuance of arrangements made with that Executive —

(i) by any local authority within the meaning of the Care Act 2014 in the discharge of their functions under Part 1 of that Act (meeting needs for care and support), or

(ii) by any local authority within the meaning of the Social Services and Well-being (Wales) Act 2014 in the discharge of their functions under Part 4 of that Act (meeting needs).

or correspond to travel concessions under any scheme established under section 93 of this Act by the Authority for that Executive’s area or (as the case may be) by authorities who include that Passenger Transport Authority.

(3) For the purposes of subsection (2) above, travel concessions granted by the Executive for an integrated transport area or a passenger transport area on any such service correspond to travel concessions under any such scheme if they are—

(a) of the same value;

(b) available subject to the same terms, limitations or conditions; and

as the travel concessions provided under that scheme.

(4) In this section “Authority”, in relation to an area, means the Integrated Transport Authority or, as the case may be, the Passenger Transport Authority for that area.

Travel concessions on services provided by local authorities

105

(1) Where the council of any county or district in England and Wales or of any local government area in Scotland are operating any public passenger transport service, they shall have power to provide travel concessions for persons travelling on that service in accordance with a scheme established under section 93 of this Act or in accordance with section 145A(1) or 145B(1) of the Transport Act 2000.

(2) In respect of travel concessions provided under this section, any such council may, if they think fit, from time to time transfer to the credit of the account of their transport undertaking sums from the general . . . fund or, where that council is the council of any local governmentarea in Scotland, from the general fund (within the meaning of section 93 of the Local Government (Scotland) Act 1973).

(2A) In subsection (2) above, the reference to the general fund shall be read, in relation to Wales, as a reference to the council fund.

(3) Sums so transferred must not exceed the cost to the council concerned of providing the concessions or so much of that cost as would not apart from subsection (2) above fall to be met out of the fund there mentioned.

Grants for transport facilities and services

106

(1) Any authority to whom this section applies, or any two or more such authorities acting jointly, may make, in such cases and subject to such terms and conditions as they think fit, grants to any other person towards expenditure incurred or to be incurred by that person in providing, maintaining or improving—

(a) any vehicle, equipment or other facilities provided wholly or mainly for the purpose of facilitating travel by members of the public who are disabled; or

(b) any equipment or other facilities specially designed or adapted for that purpose which are incorporated in any vehicle, equipment or other facilities not provided wholly or mainly for that purpose.

(2) Subject to subsection (3) below, any such authority, or any two or more such authorities acting jointly, may make, in such cases and subject to such terms and conditions as they think fit, grants to any person providing public passenger transport services towards expenditure incurred or to be incurred by that person for the purpose of—

(a) maintaining or improving facilities for public passenger transport, other than facilities provided wholly or mainly for use for the purpose of or in connection with excepted services; or

(b) facilitating or improving the operation of public passenger transport services, other than excepted services;

in the area of that authority or (as the case may be) in the area comprising the areas of both or all those authorities.

In this subsection “excepted services” means services for the carriage of passengers by road which require a PSV operator’s licence (within the meaning of Part IV of this Act).

(3) Subsection (2) above shall not apply in relation to expenditure appearing to the authority or authorities in question to be of a capital nature.

(4) This section applies to the following authorities—

(a) any Integrated Transport Authority, Passenger Transport Authority or Passenger Transport Executive;

(aa) any combined authority;

(ab) any combined county authority;

(b) the council of any county or district in England and Wales;

(d) any regional or islands council in Scotland.

Grants for services for disabled people in London

Grants by London Regional Transport

107

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Grants for services in rural areas

Grants for establishment, etc., of rural passenger services in Wales and Scotland

108

(1) Subject to the following provisions of this section, the Secretary of State may, with the approval of the Treasury, make in such cases as he thinks fit a grant to any person for the purpose of securing the establishment, continuance or improvement of any public passenger transport service which in the opinion of the Secretary of State is or will be for the benefit of persons residing in any rural area in Wales or Scotland.

(2) In the case of any grant under this section for the purpose of securing the continuance of an existing service—

(a) the service must be one which was established with the assistance of a grant under this section; and

(b) the grant must be for securing its continuance during such period from the time when it was first operated as appears to the Secretary of State to be appropriate in the case of that service.

(3) In the case of any grant under this section for the purpose of securing the improvement of an existing service the improvement in view must be one which appears to the Secretary of State to involve an innovative approach to the use of vehicles, equipment or other facilities in providing the service.

(4) Grants under this section shall be of such amount and subject to such conditions (including conditions requiring their repayment in specified circumstances) as the Secretary of State may, with the approval of the Treasury, determine, either generally or in relation to any particular cases or classes of case.

Transitional rural bus grants

109

(1) Subject to the following provisions of this section, the Secretary of State may, with the approval of the Treasury, make in such cases as he thinks fit a grant to any person in respect of qualifying mileage run at any time during the period of four years beginning with the date on which this section comes into force by vehicles used by that person in operating a service which at the time in question is a service eligible for grant under this section.

(2) A service is eligible for grant under this section at any time when—

(a) it is a service qualifying for fuel duty grant;

(b) it is being operated wholly or partly within a rural area in Great Britain (outside London); and

and in subsection (1) above “qualifying mileage” means, in relation to any vehicle, mileage run by that vehicle within any such rural area.

(3) Grants under this section shall be of such amount and subject to such conditions (including conditions requiring their repayment in specified circumstances) as the Secretary of State may, with the approval of the Treasury, determine, either generally or in relation to any particular cases or classes of case.

Miscellaneous and supplementary

Grants towards duty charged on bus fuel

110

(1) In section 92(1) of the Finance Act 1965 (grants to operators of bus services towards duty charged on bus fuel)—

(a) the words “any bus service” shall be omitted; and

(b) there shall be inserted at the end the words—

a bus service which is of a description specified for the purposes of this section and which meets any conditions which may be specified in relation to that description of service.

(2) For subsection (8) of that section there shall be substituted the following subsections—

(8) In this section— - “bus service” means a local service within the meaning of the Transport Act 1985 other than an excursion or tour within the meaning of that Act, being a service which is either— (a) registered under Part I of that Act; or (b) provided under a London local service licence granted under Part II of that Act or exempt by virtue of section 36 of that Act (London bus services under control of London Regional Transport) from the requirement of a London local service licence; - “operator” has the same meaning, in relation to a bus service, as in that Act; and - “specified” means specified in regulations made by the Secretary of State by statutory instrument. (8A) Any statutory instrument containing regulations made under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Unregistered and unreliable local services: reduction of fuel duty grant

111

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation of Part V

112

(1) In this Part of this Act—

(a) references to authorities responsible for expenditure on public passenger transport services shall be read in accordance with section 88(8) of this Act;

(b) references to service subsidies are references to the payments that fall to be made by any such authority under any agreement providing for service subsidies;

(c) references to the current reimbursement arrangements for eligible service operators participating in any scheme under section 93 of this Act shall be read in accordance with section 94(5) of this Act;

(d) references to a participation notice shall be read in accordance with section 97(2) of this Act;

(e) references to securing the provision of a service include references to securing the provision of a service by way of continuance of an existing service, and references in any other context to the provision of a service are to be read consistently with that; and

(f) “travel concession” means the reduction or waiver of a fare either absolutely or subject to terms, limitations or conditions.

(2) For the purposes of this Part of this Act, a service is a service qualifying for fuel duty grant at any time when fuel used in operating the service falls to be taken into account for the purpose of calculating grant payable to the operator of the service under section 92 of the Finance Act 1965 (grants to operators of bus services towards duty charged on bus fuel).

Part VI — Miscellaneous and General

Exclusion of requirement to co-ordinate services of public sector transport undertakings

Repeal of section 24(3) of the 1968 Act

113

(1) Section 24(3) of the 1968 Act (which imposes on the National Bus Company, the Railways Board and the Scottish Transport Group a duty to co-operate with one another for the purpose of co-ordinating the passenger transport services provided respectively by them or by their subsidiaries) shall cease to have effect.

(2) In subsection (4) of that section, for the words “Subsections (2) and (3)” there shall be substituted the words “Subsection (2)”.

Competition law: bus services and bus stations

Monopoly references with respect to bus services

114

(1) In section 11 of the Competition Act 1980 (references of public bodies and certain other persons subject to statutory controls to the Monopolies and Mergers Commission), in subsection (3) (which lists the persons who may be the subject of such a reference)—

(a) for paragraph (b) (any person not within paragraph (a) providing a bus service within the meaning of certain enactments) there shall be substituted the following paragraph—

(b) any person (not falling within paragraph (a) above) who provides in Northern Ireland a bus service within the meaning of section 14 of the Finance Act (Northern Ireland) 1966; or

; and

(b) in paragraph (bb), for the words “last-mentioned Act” there shall be substituted the words “ London Regional Transport Act 1984”.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application of Restrictive Trade Practices Act 1976 to agreements between road passenger transport operators

115

Use of bus stations: monopolies, anti-competitive practices and restrictive trade practices

116

Reconstitution of the Transport Tribunal

117

(1) The number of members of the Transport Tribunal shall no longer be subject to any limit; and the tribunal shall no longer be required to sit in two divisions.

(2) Schedule 4 to this Act shall have effect (in place of the existing law) with respect to the constitution, powers and proceedings of the tribunal ; and that Schedule also makes provision in relation to appeals to the First-tier Tribunal or the Upper Tribunal under enactments relating to transport (see paragraphs 17 and 18) .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Road passenger transport services in place of railway services

Railways Board's road passenger transport services

118

(1) After section 4 of the 1962 Act (Railways Board’s road services) there shall be inserted the following section—

(4A) (1) Subject to this section, the Railways Board shall have power to secure the provision by other persons of services for the carriage of passengers by road where a railway service has been temporarily interrupted, or has been discontinued. (2) The route (and stopping places) of any such service provided where a railway service has been discontinued need not correspond precisely with the route of the discontinued service (even where it is practicable to do so), so long as the service so provided broadly corresponds with the discontinued service, in terms of the localities it serves. (3) Subsection (2) above is not to be taken as prejudicing the power of the Board under subsection (1) above to secure the provision of a service which deviates in any respect from the route of a railway service which has been interrupted or discontinued where it is not practicable for a service by road to correspond precisely to the railway service in question. (4) Before entering into any agreement in pursuance of subsection (1) above for the provision by any other person of a service for the carriage of passengers by road in a case where a railway service has been discontinued, the Board shall invite other persons to submit tenders to provide that service for such period and on such basis as may be specified in the invitation to tender. (5) Subsection (4) above shall not apply in relation to an agreement for the provision of such a service on a temporary basis in a case where a service for the carriage of passengers by road provided under an agreement entered into by the Board in pursuance of subsection (1) above has been temporarily interrupted. (6) Nothing in subsection (4) above shall be read as requiring the Board to accept any tender submitted in response to an invitation to tender issued under that subsection. (7) The Railways Board may not under this section secure the provision by any person of a service for the carriage of passengers by road provided otherwise than by means of public service vehicles or licensed taxis. (8) The Railways Board may not themselves directly provide services for the carriage of passengers by road. (9) In this section— (a) “licensed taxi” means— (i) in England and Wales, a vehicle licensed under section 37 of the Town Police Clauses Act 1847 or section 6 of the Metropolitan Public Carriage Act 1869 or under any similar enactment; and (ii) in Scotland, a taxi licensed under section 10 of the Civic Government (Scotland) Act 1982; and (b) “stopping place” means a point at which passengers are taken up or set down in the course of the service in question.

(2) Section 4 of the 1962 Act shall cease to apply in relation to services for the carriage of passengers by road; and, accordingly, in that section—

(a) in subsection (1)—

(i) in paragraph (a), sub-paragraph (iii) and the words “and passengers” shall be omitted; and

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) subsection (5) (nothing in that section to authorise Board to use hackney carriages plying or standing for hire) shall be omitted; and

(c) in subsection (6) (exclusion of Board’s power to provide road transport services apart from that section) the words “or passengers” shall be omitted.

Bus substitution services and bus service conditions

119

(1) This section applies where the Secretary of State imposes a condition requiring the Railways Board to secure the provision of an alternative service for the carriage of passengers by road—

(a) under section 54(5) of the 1968 Act, in giving his consent to the discontinuance by the Board of all railway passenger services from any station or on any line (referred to below in this section as a closure); or

(b) under section 122 of this Act, in revoking any previous condition to that effect (whether imposed as mentioned in paragraph (a) above or imposed under section 122);

and any such service required by a condition so imposed is referred to below in this Act as a bus substitution service.

(2) In any such case the Board shall secure the provision of the bus substitution service in exercise of their powers under section 4A of the 1962 Act (provision of road passenger transport services where a railway service has been interrupted or discontinued); and subsection (2) of that section (which makes provision with respect to the route and stopping places of any service provided on discontinuance of a railway service) shall be subject to the condition requiring the bus substitution service and to any other condition imposed by the Secretary of State in connection with the closure or (as the case may be) under section 122 of this Act with respect to the operation of that service.

(3) The Passenger Transport Executive for any passenger transport area may enter into agreements with the Railways Board under which the Executive make payments to the Board in respect of the cost incurred by the Board in securing the provision of any bus substitution service between places in the Executive’s area or between such places and places outside that area but within the permitted distance for the purposes of section 10(1)(ii) of the 1968 Act as it applies to that Executive (that is to say, twenty-five miles from the nearest point on the boundary of that area).

(4) The Secretary of State may not vary or revoke any condition imposed by him as mentioned in subsection (1)(a) or (b) above with respect to the provision or operation of a bus substitution service (referred to below in this Act as a bus service condition) except as provided below in this section.

(5) A bus service condition requiring the Board to secure the provision of a bus substitution service may not be—

(a) revoked; or

(b) varied so as to permit the Board to withdraw the service from any locality or point for the time being specified in the condition as a locality or point the service is required to serve;

except in accordance with the procedure provided by sections 120 to 122 of this Act (which corresponds, with certain modifications, to the procedure applicable under section 56 of the 1962 Act in relation to a closure); but, subject to that, a bus service condition may at any time be varied or revoked by the Secretary of State.

Notice of withdrawal of bus substitution service

120

(1) Where the Railways Board propose—

(a) to seek revocation of a bus service condition requiring them to secure the provision of a bus substitution service; or

(b) to seek variation of such a condition so as to permit them to withdraw any such service from any locality or point for the time being specified in the condition as a locality or point the service is required to serve;

they shall, not less than six weeks before the date they propose for the withdrawal of the service or (as the case may be) for the withdrawal of the service from that locality or point (referred to below in this Act as the withdrawal of service) publish in two successive weeks in two local newspapers circulating in the area affected, and in such other manner as appears to them appropriate, a notice complying with subsection (2) below.

(2) The notice shall—

(a) give the date proposed by the Board for the withdrawal of service and particulars of the proposed withdrawal, of any alternative services which it appears to the Board will be available and of any proposals of the Board for securing the provision of alternative services or augmenting any available alternative services; and

(b) state that objections to the revocation or (as the case may be) to the variation of the bus service condition may be lodged in accordance with this section within six weeks of a date specified in the notice.

(3) The date so specified shall be the date on which the notice is last published in a local newspaper as required by subsection (1) above.

(4) Copies of the notice published under subsection (1) above shall be sent to the appropriate Area Committee.

(5) Where the proposed withdrawal of service relates to a service or part of a service which is subsidised by the Passenger Transport Executive for any passenger transport area under any agreement made with the Railways Board by virtue of section 119(3) of this Act, the Board shall not publish a notice with respect to the proposed withdrawal under subsection (1) above without the consent of the Executive to its publication.

(6) If in any such case the Board publish such a notice before obtaining that consent, the notice shall be of no effect unless before the end of the period fixed by the notice for objecting to the revocation or variation of the relevant bus service condition either—

(a) the Executive have informed the Board in writing that they consent to the publication; or

(b) the Secretary of State, on an application made for the purpose by the Board (whether before or after the publication of the notice) and after offering the Executive what the Secretary of State considers a reasonable opportunity to make any representations, has directed that the notice shall have effect notwithstanding that the Executive have not consented to its publication.

(7) Where in the case of any proposed withdrawal of service subsection (5) above does not apply but any locality or point affected by the proposed withdrawal is situated in a passenger transport area, the Railways Board shall send to the Passenger Transport Executive for that area a copy of the notice published by them under subsection (1) above.

Objections to withdrawal of bus substitution service

121

(1) Where a notice has been published by the Railways Board under section 120(1) of this Act, any user of any service affected and any body representing such users may within the period specified in the notice lodge with the appropriate Area Committee an objection in writing.

(2) Where such an objection is lodged the committee shall immediately inform the Secretary of State and the Board.

(3) A committee with whom an objection has been lodged under subsection (1) above shall consider the objection and any representations made by the Board and report to the Secretary of State as soon as possible on the hardship, if any, which they consider will be caused by the proposed withdrawal of service, and the report may contain proposals for alleviating that hardship.

(4) The Secretary of State may require a further report from any committee making a report to him under subsection (3) above.

(5) Copies of every report under subsection (3) or (4) above shall be sent to the Central Committee and to the Board.

(6) Where, in the case of any withdrawal of service to which section 120(5) or (7) of this Act applies, notice of the withdrawal has been published under subsection (1) of that section, the Executive concerned may, within the period specified in the notice for objecting to the withdrawal, lodge with the Secretary of State a statement in writing that they oppose the withdrawal and of their reasons for opposing it.

The fact that the Executive concerned gave their consent to the publication of the notice shall not affect their right under this subsection to oppose the withdrawal of service.

(7) Where the Executive for any passenger transport area lodge such a statement with the Secretary of State they shall send a copy of that statement to the Board.

(8) References above in this section to a notice published under section 120(1) of this Act do not include a notice which under subsection (6) of that section is of no effect.

Revocation or variation of bus service conditions

122

(1) Subject to subsection (2) below, where an objection to a proposed withdrawal of service is lodged under section 121 of this Act, the Secretary of State shall not revoke or (as the case may be) vary the bus service condition in question until he has received from the appropriate Area Committee the report required by subsection (3) of that section and any further report required by him under subsection (4) of that section.

(2) If in any case the Secretary of State considers that any such report has been unreasonably delayed he may, after consulting the committee concerned and making such enquiries as he thinks fit, revoke or vary the condition without waiting for the report.

(3) Where a statement opposing the proposed withdrawal is lodged by the Executive for a passenger transport area under section 121 of this Act, the Secretary of State shall have regard to that statement in determining whether to revoke or vary the bus service condition in question.

(4) In any case within subsection (1) or (3) above the Secretary of State shall have regard, in determining whether to revoke or vary the bus service condition in question, to any matters which for the time being appear to him to be relevant, including any social or economic considerations, and shall not revoke or vary the condition in accordance with the Board’s proposals—

(a) unless he is satisfied that a reasonable opportunity has been afforded for the making to him of representations with respect to the proposed withdrawal of service by or on behalf of employees of the Board affected by that withdrawal; or

(b) before he has considered any representations made while that opportunity remains available which he is satisfied are either made by such employees or made on behalf of such employees by an organisation appearing to him to represent such employees.

(5) The reference in subsection (4)(a) above to employees of the Board affected by the withdrawal of service is a reference to persons who are employed by the Board for the purposes of, or in connection with, the service in question and who appear to the Secretary of State to be likely to be directly affected by the withdrawal of service.

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