Bus Services Act 2025

Franchising schemes: general

Availability of franchising schemes

1

• (1) The Transport Act 2000 is amended as follows.

• (2) In section 123A (franchising schemes), for subsection (4) substitute—

(4) In this Part “franchising authority” means a local transport authority whose area is in England.

• (3) In section 123C (Secretary of State consent to franchising and notice requirements)—

• (a) omit subsections (1) to (3);

• (b) in subsection (4), for “the authority” substitute “a franchising authority”;

• (c) for the heading substitute “Notice of assessment”.

• (4) In section 143A (power of franchising authorities to obtain information) omit subsection (5).

• (5) In section 160(2) and (2A) (regulations and orders) omit “123A(4),”.

Specification of areas

2

In section 123H of the Transport Act 2000 (making and publication of scheme), after subsection (2) insert—

(2A) Where a scheme specifies more than one area under subsection (2)(a), the areas specified need not be contiguous.

Specification of services

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• (1) In section 123H of the Transport Act 2000 (making and publication of scheme), after subsection (2A) (inserted by section 2 of this Act) insert—

(2B) Local services may be specified for the purposes of subsection (2)(b)— (a) by reference to the routes or places intended to be served, (b) by describing the intended services in general terms, (c) by any combination of the ways specified in paragraphs (a) and (b) of this subsection, or (d) in such other way as the authority or authorities think fit so as to enable the intended services to be identified.

• (2) Subsection (3) applies where, before this section comes into force—

• (a) a franchising authority or authorities has published a consultation document under section 123E(2) of the Transport Act 2000 relating to a proposed franchising scheme, but

• (b) the scheme has not been made in pursuance of the consultation document.

• (3) Where this subsection applies the franchising authority or authorities may, when making the scheme in pursuance of the consultation document, specify local services in any way mentioned in section 123H(2B) of the Transport Act 2000 (inserted by subsection (1) of this section), whether or not the services so specified were included in the description contained in the consultation document as required by section 123F(1)(c) of that Act.

• (4) Part 3 of Schedule 9A to the Transport Act 2000 (inserted by the Schedule to this Act) does not apply in relation to a variation of an existing franchising scheme if—

• (a) the only variation is of the local services specified under section 123H(2)(b) of that Act in the scheme, and

• (b) the variation is to have effect before the end of the period of 2 years beginning with the day on which this section comes into force.

• (5) An “existing franchising scheme” is a franchising scheme made before this section comes into force.

Minimum period before provision of services

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• (1) In section 123H of the Transport Act 2000 (making and publication of scheme) omit subsection (4).

• (2) Subsection (3) applies where, before this section comes into force—

• (a) a franchising authority or authorities has published a consultation document under section 123E(2) of the Transport Act 2000 relating to a proposed franchising scheme or a variation of such a scheme, but

• (b) the scheme has not been made or varied in pursuance of the consultation document.

• (3) Where this subsection applies the franchising authority or authorities may, when making or varying the scheme in pursuance of the consultation document, specify a minimum period under section 123H(2)(d) or (3)(c) which is less than six months.

References to local services

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• (1) The Transport Act 2000 is amended as follows.

• (2) In section 123E(4)(a)(consultation), after “local services” insert “which have one or more stopping places”.

• (3) In section 123N(2)(a) (revocation), after “local services” insert “which have one or more stopping places”.

• (4) In section 123Q(5)(a) (application for service permit), after “local services” insert “which have one or more stopping places”.

• (5) In section 123R(5)(a) (conditions), after “local services” insert “which have one or more stopping places”.

Franchising schemes: non-franchised services

Criteria for granting service permits

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• (1) Section 123Q of the Transport Act 2000 (application for service permit) is amended in accordance with subsections (2) to (4).

• (2) After subsection (5) insert—

(5A) If the application is for a service permit for a cross-boundary service, the authority or authorities may grant the permit applied for if they are satisfied that— (a) the benefits to persons making journeys on the proposed service will outweigh any adverse effect on any local service that is provided under a local service contract in the area to which the scheme relates, or (b) the benefits of the proposed service to the economy of the relevant area, or to persons living in that area, will outweigh any such adverse effect. (5B) If the application is for a service permit for a service that is not a cross-boundary service, the authority or authorities may grant the permit applied for if they are satisfied that the benefits of the proposed service to the economy of the area to which the scheme relates, or to persons living in that area, will outweigh any adverse effect on any local service that is provided under a local service contract in that area.

• (3) In subsection (6), for “if they are not satisfied as to the matters in subsection (5)(a) and (b)” substitute “except under subsection (5), (5A) or (5B)”.

• (4) After subsection (7) insert—

(8) In this section— - “cross-boundary service”, in relation to a franchising scheme, means a service that— has one or more stopping places in the area to which the scheme relates, and has one or more stopping places outside that area; - “relevant area”, in relation to a cross-boundary service, means the combined area of each— local transport authority, council in Scotland, and Transport Partnership created under the Transport (Scotland) Act 2005, in which the service has a stopping place.

• (5) In section 123S(2) of that Act (revocation and suspension)—

• (a) in paragraph (a), for “that a matter in section 123Q(5)(a) or (b)” substitute “if the permit was granted under subsection (5) of section 123Q, that a matter in paragraph (a) or (b) of that subsection”;

• (b) after that paragraph insert—

(aa) if the permit was granted under subsection (5A) or (5B) of that section, that the authority or authorities are no longer satisfied as mentioned in the subsection in question,

.

• (6) The amendments made by this section apply only in relation to applications for a service permit made on or after the date on which this section comes into force.

Registration of services provided under service permits

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• (1) The Transport Act 2000 is amended as follows.

• (2) In section 123J (effect of local service contracts: registration requirements and provision of services), after subsection (4) insert—

(4A) Subsection (2) does not apply in relation to a local service which is provided under a service permit.

• (3) In section 123P (service permits), after subsection (2) insert—

(3) The authority or authorities must inform a traffic commissioner of the grant of a service permit under this section.

• (4) After section 123P insert—

(123PA) (1) The franchising authority operating a franchising scheme, or the franchising authorities operating such a scheme acting jointly, may grant an exemption from registration in respect of any local service which is, or class of local services which are, provided under a service permit in the area to which the scheme relates. (2) Where such an exemption has effect, sections 6 to 9 of the Transport Act 1985 (registration of local services) do not have effect in relation to the service, or class of services, so far as operated in that area. (3) The franchising authority or authorities may vary or revoke an exemption granted by them under this section. (4) Where an exemption is granted, varied or revoked under this section, the franchising authority or authorities must— (a) publish, in such manner as they think fit, details of the grant, variation or revocation of the exemption, and (b) before the end of the period of 14 days beginning with the day on which the exemption is granted, varied or revoked, inform a traffic commissioner of the grant, variation or revocation of the exemption.

• (5) In section 123S (revocation and suspension), after subsection (2) insert—

(2A) The franchising authority or authorities must inform a traffic commissioner of the revocation or suspension of a service permit under this section.

• (6) In section 123V(1) (transitional provision about schemes), after paragraph (b) insert—

(ba) the application of section 123PA in relation to services or classes of services (registration exemption for services provided under service permits),

.

Substitute road services

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• (1) Section 123J of the Transport Act 2000 (effect of local service contracts: registration requirements and provision of services) is amended as follows.

• (2) In subsection (5)—

• (a) omit the “or” at the end of paragraph (a);

• (b) at the end of paragraph (b) insert

, or (c) a service falling within subsection (8).

• (3) After subsection (7) insert—

(8) A service falls within this subsection if it is a local service provided under an agreement entered into, where a service for the carriage of passengers by railway or tramway has been temporarily interrupted— (a) under section 40 of the Railways Act 2005 (substitute road services), or (b) with the person who usually provides the railway or tramway service.

Franchising schemes: procedure

Report on assessment of proposed scheme

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• (1) Section 123D of the Transport Act 2000 (audit) is amended in accordance with subsections (2) to (8).

• (2) For subsection (1) substitute—

(1) A franchising authority, or two or more franchising authorities acting jointly, may not proceed with a proposed franchising scheme unless they have obtained a report from an independent approved person on the assessment of the proposed scheme (see section 123B).

• (3) In subsection (2)—

• (a) omit “auditor’s”;

• (b) for “auditor” substitute “approved person”;

• (c) in paragraph (a), for “123B(3)(d) or (e)” substitute “123B(3)(d) and (e)”.

• (4) For subsection (3) substitute—

(3) The Secretary of State must issue guidance as to— (a) the time at which it is appropriate to appoint an approved person to produce a report for the purposes of subsection (1), and (b) the matters to be taken into account by a franchising authority when selecting such a person, including for the purposes of determining whether a person is independent.

• (5) In subsection (5), for “auditor” substitute “approved person”.

• (6) In subsection (6), for “Auditors” substitute “Approved persons”.

• (7) For subsections (7) and (8) substitute—

(8) In this section “approved person” means a person specified, or of a description specified, in regulations made by the Secretary of State.

• (8) For the heading substitute “Report on assessment of proposed scheme”.

• (9) In section 123E of that Act (consultation)—

• (a) in subsection (1), for “an auditor’s” substitute “a”;

• (b) in subsection (2)(c) omit “auditor’s”.

• (10) The amendments made by this section do not apply in relation to an appointment of a person as an auditor, in relation to a proposed franchising scheme, before this section comes into force.

Duty to consult persons with disabilities

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In section 123E(4) of the Transport Act 2000 (consultation), after paragraph (d) insert—

(da) such persons with disabilities (within the meaning given by section 6 of the Equality Act 2010) who are users or prospective users of local services, or such organisations appearing to the authority or authorities to be representative of such persons, as they think fit,

.

Variation of schemes

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• (1) The Transport Act 2000 is amended as follows.

• (2) In section 123M (variation of scheme)—

• (a) in subsection (3), after “date” insert “or dates”;

• (b) omit subsection (4);

• (c) in subsection (7), for “to (6)” substitute “to (6A) and Schedule 9A”;

• (d) omit subsections (8) and (9).

• (3) After section 123M insert—

(123MA) (1) Subsections (2) to (10) of section 123H apply in relation to a franchising scheme varied in accordance with section 123M as they apply in relation to a franchising scheme made in accordance with subsection (1) of section 123H, but subject to subsection (2) of this section. (2) Where the variation of the scheme adds to the scheme area the scheme must specify, in addition to the information previously specified under section 123H(2)(c) and (d), the date and minimum period to be specified in relation to local service contracts relating to local services to be provided in the additional area. (3) In Schedule 9A— (a) Parts 1 and 2 contain provision about the procedure to be followed when varying the area specified under section 123H(2)(a) in the scheme, and (b) Part 3 contains provision about the procedure to be followed when making certain other variations of the scheme. (4) For the purposes of this section and Schedule 9A— (a) a variation of a franchising scheme “adds to the scheme area” if it involves adding an area to the area specified under section 123H(2)(a) in the scheme, and (b) “the additional area” is the area added.

• (4) The Schedule inserts new Schedule 9A into the Transport Act 2000.