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

3

• (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

4

• (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

5

• (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

6

• (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

7

• (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

8

• (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

9

• (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

10

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

11

• (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.

Miscellaneous amendments

12

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

• (2) In section 123B (assessment)—

• (a) for subsection (3)(b) substitute—

(b) whether the proposed scheme would contribute to the implementation— (i) by neighbouring local transport authorities of those authorities’ policies under section 108(1)(a), and (ii) by neighbouring relevant local authorities of other policies affecting local services that those authorities have adopted and published,

, and

• (b) in subsection (7)—

• (i) omit the “or” at the end of paragraph (b), and

• (ii) after that paragraph insert—

(ba) a Transport Partnership created under the Transport (Scotland) Act 2005, or

.

• (3) In section 123E (consultation)—

• (a) in subsection (4), after paragraph (da) (inserted by section 10) insert—

(db) the Welsh Ministers if, in the opinion of the authority or authorities, any part of Wales would be affected by the proposed scheme,

, and

• (b) in subsection (5)—

• (i) omit the “or” at the end of paragraph (e), and

• (ii) after that paragraph insert—

(ea) a Transport Partnership created under the Transport (Scotland) Act 2005, or

.

• (4) In section 162(1) (interpretation of Part 2), at the appropriate place insert—

• “council in Scotland” means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994,

.

Franchising schemes: direct award of contracts

Direct award of contracts to incumbent operators

13

• (1) The Public Service Obligations in Transport Regulations 2023 (S.I. 2023/1369) are amended as follows.

• (2) After regulation 16 insert—

(16A) (1) A franchising authority, or two or more franchising authorities acting jointly, may make a direct award of a public service contract where— (a) the contract is a local service contract in relation to a franchising scheme, (b) no local services provided in the area to which the contract relates are provided under a local service contract, and (c) the award is made to a public service operator who, throughout the period of three months ending with the day on which the contract is entered into, is providing local services which are the same as, or substantially similar to, the local services to which the contract relates. (2) Where a franchising authority makes a direct award of a public service contract under this regulation, it must, within six months of granting the award, and while ensuring the protection of commercially sensitive information and commercial interests, publish a notice on its website which— (a) sets out the information specified in paragraph (3), or (b) where any of the information in paragraph (3) has already been published (whether under regulation 23 or otherwise), provides details of where that information can be accessed, and, where the award is made by two or more franchising authorities acting jointly, the notice must be published on each authority’s website. (3) The information referred to in paragraph (2) is— (a) the name of the public service operator, its ownership and, if relevant, the name of the party or parties exercising legal control, (b) the duration of the public service contract, (c) a description of the passenger transport services to be performed, (d) a description of the parameters of the financial compensation, (e) information about any quality targets, such as punctuality and reliability and any applicable rewards and penalties, and (f) information about any targets or requirements intended to protect the environment or to ensure local services are accessible and inclusive. (4) In this regulation, each of the following terms has the same meaning as in Part 2 of the Transport Act 2000— - “franchising authority”; - “franchising scheme”; - “local service”; - “local service contract”.

• (3) In regulation 9 (duration of public service contracts)—

• (a) in paragraph (1)(c), after “under” insert “regulation 16A (direct award of bus contracts to incumbent operators) or”;

• (b) in paragraph (4), after “measures)” insert “, regulation 16A (direct award of bus contracts to incumbent operators)”.

• (4) In regulation 22(3)(b) (pre-award publication), at the end insert “or regulation 16A (direct award of bus contracts to incumbent operators)”.

Enhanced partnership plans and schemes

Socially necessary local services

14

• (1) The Transport Act 2000 is amended in accordance with subsections (2) and (3).

• (2) In section 138A (enhanced partnership plans and schemes)—

• (a) in subsection (3), after paragraph (b) insert—

(ba) lists which of those local services the authority or authorities consider are socially necessary local services,

;

• (b) after subsection (4) insert—

(4A) A review under subsection (4) is not to include a review of the list of socially necessary local services required by subsection (3)(ba); but the authority or authorities must keep that list under review and amend it from time to time as appears to them to be necessary.

;

• (c) after subsection (14) insert—

(15) In this section and section 138C “socially necessary local service”, in relation to the area to which an enhanced partnership plan relates, means a local service which— (a) enables passengers to access— (i) essential goods and services, (ii) economic opportunities (including employment), or (iii) social activities, and (b) if cancelled, is likely to have a material adverse effect on the ability of passengers to access those goods, services, opportunities or activities.

• (3) In section 138C (requirements in respect of local services), after subsection (9) insert—

(9A) An enhanced partnership scheme must— (a) specify requirements that apply where the operator of a socially necessary local service listed as required by section 138A(3)(ba) proposes— (i) to cancel a registration under section 6 of the Transport Act 1985 in relation to the service, or (ii) to vary the registration in such a way as is likely to have a material adverse effect on the ability of passengers to access the goods, services, opportunities or activities mentioned in section 138A(15)(a) in relation to the service; (b) require a local transport authority or authorities, having been notified of a proposed cancellation or a proposed variation which is likely to have such an effect, to consider whether any alternative arrangements may be made so as to mitigate that effect.

• (4) The local transport authority or authorities to whose area or combined area, or part of it, an enhanced partnership relates on the day on which this section comes into force (“the commencement day”) must, before the end of the period of one year beginning with that day—

• (a) vary the plan in accordance with subsection (3) of section 138K of the Transport Act 2000 so that it identifies which of the services provided in the area are socially necessary local services, and

• (b) vary, in accordance with that subsection, each enhanced partnership scheme which, on the commencement day, relates to the whole or part of the area to which the plan relates so that section 138C(9A) of that Act is satisfied in relation to the scheme.

Measures specified in schemes

15

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

• (2) In section 138A(6)(b) (contents of schemes), for the words from “routes in” to “local services” substitute “local services in the whole or part of that area”.

• (3) In section 138D(2)(a) (measures specified in scheme), omit “serving the routes” (in both places).

Passenger benefit requirement

16

In section 138C of the Transport Act 2000 (requirements in respect of local services), for subsection (9) substitute—

(9) The requirements that may be specified in an enhanced partnership scheme also include requirements— (a) as to operators of local services establishing and operating arrangements that facilitate the operation of the scheme; (b) that persons using local services in the area to which the scheme relates benefit from any reduction in the cost of operating those services that results from facilities provided or measures taken by— (i) the Secretary of State, (ii) a local transport authority, or (iii) any other person exercising functions of a public nature.

Variation of schemes

17

After section 138K of the Transport Act 2000 insert—

(138KA) (1) A variation of an enhanced partnership scheme may not be made under section 138K in a case to which subsection (2) of this section applies unless— (a) the Secretary of State has directed the authority or authorities concerned to make the variation, or (b) the variation is one that the authority or authorities are required to make by section 14(4)(b) of the Bus Services Act 2025. (2) This subsection applies to any case specified in the scheme as one in which the scheme may be varied in accordance with the scheme (see section 138E). (3) The Secretary of State may give a direction under this section only if, on an application made by the authority or authorities, the Secretary of State is satisfied that— (a) the variation cannot be made in accordance with the scheme because of unreasonable or obstructive behaviour by one or more operators of local services, or (b) persons using local services in the area to which the scheme as varied will relate will benefit from the variation of the scheme. (4) A direction under this section does not affect the application of the other requirements that must be met before the scheme can be varied under section 138K.

Requirements enabling travel by persons with disabilities

18

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

• (2) After section 138C (requirements in respect of local services) insert—

(138CA) (1) An enhanced partnership scheme may specify under section 138A(5)(b) requirements about enabling persons with disabilities to travel on local services independently, and in safety and reasonable comfort. (2) The requirements may include requirements about securing alternative means for the carriage of a person with a disability where— (a) the person cannot travel on a public service vehicle being used to provide a local service because the vehicle’s wheelchair space is occupied and cannot be vacated readily, and (b) it is possible for the person, together with any wheelchair, mobility aid or assistance dog which the person has with them, to be carried in safety and reasonable comfort to the person’s intended destination by a taxi or private hire vehicle. (3) Before making an enhanced partnership scheme, a local transport authority must consider whether the requirements proposed to be specified in the scheme will enable persons with disabilities to travel independently, and in safety and reasonable comfort, on local services that have one or more stopping places in the area to which the scheme relates. (4) In this section— - “assistance dog” has the meaning given by section 173(1) of the Equality Act 2010; - “mobility aid” has the meaning given by section 164A(6) of that Act; - “persons with disabilities” means persons who have a disability within the meaning given by section 6 of that Act.

• (3) In section 138F(6) (consultation), after paragraph (b) insert—

(ba) 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,

.

• (4) In section 138K (variation), after subsection (8) insert—

(9) Before varying an enhanced partnership scheme, a local transport authority must consider whether the requirements proposed to be specified in the scheme as varied will enable persons with disabilities to travel independently, and in safety and reasonable comfort, on local services that have one or more stopping places in the area to which the scheme as proposed to be varied relates. (10) In this section “persons with disabilities” means persons who have a disability within the meaning given by section 6 of the Equality Act 2010.

• (5) In section 138A(5)(b) (requirements which may be specified in enhanced partnership schemes), for “section 138C” substitute “sections 138C and 138CA”.

Objections by operators

19

• (1) The Transport Act 2000 is amended in accordance with subsections (2) to (6).

• (2) In section 138F (preparation, notice and consultation)—

• (a) for subsection (2)(c) substitute—

(c) require any objections to be made before the end of the period of 28 days beginning with the day on which the notice is given (“the objection period”).

;

• (b) after subsection (4) insert—

(4A) A local transport authority or authorities may give notice of a proposal under subsection (1)(d) before the end of the objection period if every person to whom the notice under subsection (1)(c) is required to be given has confirmed in writing that they do not intend to object.

;

• (c) in subsection (5), for “period for objections stated in the notice under subsection (1)(c)” substitute “objection period”.

• (3) In section 138G (making of plans and schemes)—

• (a) for subsection (3)(c) substitute—

(c) require any objections to be made before the end of the period of 28 days beginning with the day on which the notice is given (“the objection period”).

;

• (b) after subsection (3) insert—

(3A) The authority or authorities may make the plan and scheme with modifications before the end of the objection period if every person to whom the notice under subsection (2) is required to be given has confirmed in writing that they do not intend to object.

;

• (c) in subsection (4), for “period for objections stated in the notice under subsection (2)” substitute “objection period”.

• (4) In section 138L (variation: preparation, notice and consultation)—

• (a) for subsection (2)(c) substitute—

(c) require any objections to be made before the end of the period of 28 days beginning with the day on which the notice is given (“the objection period”).

;

• (b) after subsection (4) insert—

(4A) A local transport authority or authorities may give notice of a proposal under subsection (1)(d) before the end of the objection period if every person to whom the notice under subsection (1)(c) is required to be given has confirmed in writing that they do not intend to object.

;

• (c) in subsection (5), for “period for objections given in the notice under subsection (1)(c)” substitute “objection period”.

• (5) In section 138M (making a variation)—

• (a) for subsection (4)(d) substitute—

(d) require any objections by persons who are operators of qualifying local services at the qualifying time to be made before the end of the period of 28 days beginning with the day on which the notice is given (“the objection period”).

;

• (b) after subsection (4) insert—

(4A) The authority or authorities may vary the plan or scheme (with or without modifications) before the end of the objection period if every person to whom the notice under subsection (3) is required to be given has confirmed in writing that they do not intend to object.

;

• (c) omit subsection (8)(c).

• (6) In section 138O (revocation)—

• (a) omit subsection (7)(a);

• (b) for subsection (7)(d) substitute—

(d) require any objections to the revocation by persons who are operators of qualifying local services at the qualifying time to be made before the end of the period of 28 days beginning with the day on which the notice is given (“the objection period”).

;

• (c) after subsection (7) insert—

(7A) The notice under subsection (6) may state the date on which the plan or scheme is to be revoked. (7B) The authority or authorities may revoke the plan or scheme before the end of the objection period if every person to whom the notice under subsection (6) is required to be given has confirmed in writing that they do not intend to object.

;

• (d) omit subsection (11)(c).

• (7) In the Enhanced Partnership Plans and Schemes (Objections) Regulations 2018 (S.I. 2018/404) omit regulations 7(2) and 8(2).

Advance notice of requirement to provide information

20

In section 143B of the Transport Act 2000 (power to obtain information about local services), after subsection (4) insert—

(4A) A local transport authority or authorities may not require an operator to supply information under this section unless, at least 14 days before imposing the requirement, they have given notice to the operator— (a) of their intention to impose the requirement, and (b) of the date on which they intend to do so and the period that they intend to allow for the provision of the information. (4B) When imposing the requirement the authority or authorities must have regard to any representations made by the operator in response to the notice under subsection (4A).

Local government functions

Bus network accessibility plans

21

In the Transport Act 2000, after section 113B insert—

(113BA) (1) A local transport authority whose area is in England must, before the end of the period of one year beginning with the day on which this section comes into force, publish a bus network accessibility plan in relation to the authority’s area. (2) A bus network accessibility plan must— (a) identify what (if any) provision is made to assist persons with disabilities to travel on local services that have one or more stopping places in the authority’s area; (b) set out the extent to which, in the authority’s opinion, the provision made in the authority’s area enables persons with disabilities to travel on such local services independently, and in safety and reasonable comfort; (c) describe what (if any) further action the authority intends to take to enable persons with disabilities to travel on such local services independently, and in safety and reasonable comfort. (3) The authority must review the plan— (a) if there is a substantial change to the provision of local services in the authority’s area, and (b) in any event, at least once every three years. (4) The authority must alter the plan— (a) following any review carried out as required by subsection (3)(a), or (b) if the authority considers it appropriate to do so for any other reason. (5) The authority may replace the plan as they think fit. (6) In preparing and reviewing a bus network accessibility plan, a local transport authority must consult— (a) persons operating local services in the authority’s area, (b) such persons with disabilities who are users or prospective users of local services, or such organisations appearing to the authority to represent such persons, as they think fit, and (c) any other persons whom the authority considers it appropriate to consult. (7) In this section “persons with disabilities” means persons who have a disability within the meaning given by section 6 of the Equality Act 2010.

Local government bus companies

22

• (1) In the Bus Services Act 2017 omit section 22 (restriction on formation of bus companies by local government in England).

• (2) A director of a local government bus company who is—

• (a) paid for acting in that capacity, or

• (b) an employee of the company or a subsidiary of the company,

is disqualified for being elected or being a member of a relevant authority if the company is under the control of the authority.

• (3) For the purposes of subsection (2), a company is under the control of a relevant authority if—

• (a) the company is a subsidiary of the authority, or

• (b) the authority is one of two or more relevant authorities that are members of the company and the company would be a subsidiary of those authorities if they were a single body corporate.

• (4) Subsections (1) to (3) apply in relation to a director of a subsidiary of a local government bus company as they apply in relation to a director of such a company.

• (5) In subsections (2) to (4)—

• “local government bus company” means a company formed by a relevant authority or authorities for the purpose of providing a local service;

• “local service” has the same meaning as in the Transport Act 1985 (see section 2 of that Act);

• “relevant authority” means— a county council in England, a district council in England, a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009, a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023, or an Integrated Transport Authority for an integrated transport area in England;

• “subsidiary” has the same meaning as in the Companies Act 2006 (see section 1159 of that Act).

• (6) In the Transport Act 1985—

• (a) in section 66 (exclusion of powers of district councils to run bus undertakings)—

• (i) in subsection (1), for “subsection” substitute “subsections (1A) and”;

• (ii) after that subsection insert—

(1A) Subsection (1) does not prevent a non-metropolitan district council in England from forming a company for the purpose of providing a local service.

;

• (b) in section 73 (control over constitution and activities of public transport companies)—

• (i) at the end of subsection (5) insert—

(c) in relation to the provision of local services by a public transport company to which subsection (5B) applies or any other activity of the company relating to such services.

;

• (ii) after that subsection insert—

(5A) Subsection (3)(b) does not apply in relation to borrowing money for the purposes of, or in connection with, the provision of local services by a public transport company to which subsection (5B) applies. (5B) This subsection applies to a public transport company the controlling authority of which is— (a) an authority the functions of which are exercisable in relation to an area in England, or (b) two or more authorities the functions of which are exercisable in relation to areas in England.

• (7) In section 123O(3) of the Transport Act 2000 omit the words from “apart” to the end.

• (8) In Schedule 4 to the Levelling-up and Regeneration Act 2023 omit paragraph 212.

Grants

23

In the Transport Act 2000, after section 154 insert—

(154A) (1) A local transport authority whose area is in England may make grants to operators of the services mentioned in subsection (2) towards their costs in operating those services in that area. (2) The services are— (a) local services which have one or more stopping places in the authority’s area, and (b) services which have one or more stopping places in the authority’s area and would be local services but for section 2(4)(b) of the Transport Act 1985. (3) Grants under this section are to be of such amount and subject to such conditions (including conditions requiring their repayment in specified circumstances) as may be determined by the authority. (4) If a local transport authority is a mayoral combined authority, the function under subsection (1) is a function of the combined authority exercisable only by the mayor acting on behalf of the combined authority. (5) If a local transport authority is a mayoral CCA, the function under subsection (1) is a function of the combined county authority exercisable only by the mayor acting on behalf of the combined county authority. (6) The Secretary of State may issue guidance as to the exercise of functions under this section by local transport authorities and mayors; and they must have regard to any such guidance. (7) The guidance may, in particular, include guidance— (a) about the protection of services mentioned in subsection (2) that are socially necessary, (b) about how the services mentioned in that subsection can contribute to economic growth and the protection of the environment, and (c) setting out practical considerations to be taken into account when exercising functions under this section. (8) The Secretary of State may at any time vary or revoke guidance issued under subsection (6). (9) The Secretary of State must publish— (a) guidance issued under subsection (6), and (b) any variation or revocation of the guidance. (10) Section 88(1) of the Transport Act 1985 (application to subsidy agreements of sections 89 to 92 of that Act) does not apply in relation to grants under this section.

Information about local services

Information provided on registration of local services

24

• (1) The Transport Act 1985 is amended in accordance with subsections (2) and (3).

• (2) In section 6 (registration of local services)—

• (a) in subsection (9)—

• (i) for paragraph (e) substitute—

(da) in the case of regulations made by the Secretary of State, for the prescribed particulars in respect of a service to be given to such persons as may be prescribed; (e) in the case of regulations made by the Secretary of State, for an application for registration, or for the variation or cancellation of a registration, not to be accepted by a traffic commissioner unless— (i) the applicant gives, to such persons as may be prescribed, such information as a traffic commissioner may reasonably require in connection with the application, or (ii) the applicant is subject to requirements imposed by regulations made by virtue of section 141A(1)(a) of the Transport Act 2000 and complies with those requirements; (ea) in the case of regulations made by the Welsh Ministers, for an application for registration, or for the variation or cancellation of a registration, not to be accepted by a traffic commissioner unless the applicant gives to a traffic commissioner such information as a traffic commissioner may reasonably require in connection with the application;

;

• (ii) in paragraph (j), for “to a traffic commissioner” substitute

— (i) in the case of regulations made by the Secretary of State, to such persons as may be prescribed; (ii) in the case of regulations made by the Welsh Ministers, to a traffic commissioner

;

• (iii) after paragraph (ka) insert—

(kb) in the case of regulations made by the Secretary of State, as to the use and disclosure of information given or records made available under this section;

;

• (b) after subsection (11) insert—

(12) Regulations made by the Secretary of State under this section may make provision about the manner and form in which information is to be provided (including, in particular, provision requiring it to be provided electronically).

• (3) In section 6I (records of registration etc)—

• (a) in subsection (4), for “a traffic commissioner” substitute “such persons as may be prescribed”;

• (b) in subsection (7), for paragraph (b) substitute—

(b) as to the particulars to be supplied under subsection (4); (c) about the manner and form in which the particulars are to be supplied under that subsection (including, in particular, provision requiring them to be supplied electronically); (d) as to the use and disclosure of records kept and particulars supplied under this section.

• (4) Information received by a traffic commissioner under section 6 or 6I of the Transport Act 1985, in connection with a local service which has one or more stopping places in England, before this section comes into force may be provided by the traffic commissioner to the Secretary of State (in which case the information is provided without restrictions on its disclosure or use).

• (5) Where a local service is provided both inside and outside England, subsection (4) does not authorise the provision of information which relates to any part of the service which is provided outside England.

Information about local services

25

• (1) Section 141A of the Transport Act 2000 (power to require information about English bus services) is amended as follows.

• (2) In subsection (2)—

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

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

, or (c) in order to monitor the provision of relevant local services and to facilitate the exercise of functions by the Secretary of State.

• (3) In subsection (3)—

• (a) in paragraph (a), for “and tickets” substitute “, tickets and passenger numbers”;

• (b) at the end of paragraph (b) omit “and”;

• (c) after paragraph (c) insert—

(d) information about operators of the services, (e) information about the vehicles used to provide the services, including information about their features and equipment, the way in which they are to be used in relation to particular routes, the distance travelled by them and the number of journeys made by them, (f) a statement, in relation to a relevant local service, as to whether the service consists of excursions or tours, and (g) any other information which may be prescribed under section 6(2)(a) of the Transport Act 1985 in relation to the registration of a local service under that section.

• (4) In subsection (4)—

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

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

, and (c) information about the costs of operating the services and the number of staff engaged in operating the services.

• (5) In subsection (8), for paragraph (b) substitute—

(b) provision for the information to be provided to a traffic commissioner.

Information obtained under Statistics of Trade Act 1947

26

In the Statistics of Trade Act 1947, after section 9A insert—

(9B) (1) Nothing in section 9 prevents or penalises the publication by the Secretary of State of information about relevant local services obtained under section 1 of this Act during the qualifying period from— (a) a person who, when the information was obtained, held a PSV operator’s licence, or (b) another person acting on behalf of such a person. (2) For the purposes of this section, information about relevant local services includes (but is not limited to) information about— (a) the vehicles used to provide the services, including information about their features and equipment, the distance travelled by them and the number of journeys made by them; (b) the number of tickets sold for travel on the services and the number of passengers who travelled on them; (c) the revenue earned from and the costs of operating the services; (d) the number of staff engaged in the operation of the services. (3) In this section— (a) “PSV operator’s licence” has the same meaning as in the Public Passenger Vehicles Act 1981 (see section 82(1) of that Act); (b) “relevant local service” means a local service which has one or more stopping places in England; (c) “the qualifying period” means the period— (i) beginning with 1 May 2015, and (ii) ending with the day on which section 26 of the came into force; (d) “local service” and “stopping place” have the same meanings as in the Transport Act 1985 (see sections 2 and 137(1) of that Act). (9C) (1) At least 30 days before publishing any information in reliance on section 9B, the Secretary of State must publish a notice— (a) describing in general terms the information to be published, and (b) stating that the information is to be published in reliance on that section. (2) The notice must be published on a website maintained by or on behalf of the Secretary of State (and may also be published in any other manner that the Secretary of State thinks appropriate). (3) On the publication of any information in reliance on section 9B, the following cease to apply in relation to the information— (a) section 9, and (b) any subordinate legislation (within the meaning of the Interpretation Act 1978) made under that section.

Enforcement

Powers of inspectors

27

• (1) Section 24 of the Public Passenger Vehicles Act 1981 (regulation of conduct of inspectors) is amended in accordance with subsections (2) and (3).

• (2) After subsection (1) insert—

(1A) Regulations under subsection (1)(b) may, in particular, make provision about whether or not a person authorised to act as an inspector by a relevant authority may act in that capacity in relation to a relevant local service— (a) at times when the public service vehicle used to provide the service is outside the area of the authority (including when the vehicle is in Wales or Scotland); (b) which does not have a stopping place in the area of the authority.

• (3) For subsection (4) substitute—

(4) In this section and section 25 “inspector”, in relation to a public service vehicle, means— (a) a person authorised to act as an inspector by the holder of the PSV operator’s licence under which the vehicle is being used, and (b) in the case of a vehicle being used to provide a relevant local service, a person authorised to act as an inspector by a relevant authority. (4A) In this section— - “relevant authority” means— a local transport authority (within the meaning given by Part 2 of the Transport Act 2000) whose area is in England, or Transport for London; - “relevant local service” means a local service which has one or more stopping places in England; - “stopping place” has the same meaning as in the Transport Act 1985.

• (4) In the Public Service Vehicles (Conduct of Drivers, Inspectors, Conductors and Passengers) Regulations 1990 (S.I. 1990/1020), “inspector” includes an inspector authorised as mentioned in section 24(4)(b) of the Public Passenger Vehicles Act 1981.

Local transport authority byelaws

28

• (1) In the Transport Act 2000, before the italic heading preceding section 145A insert—

(144A) (1) A local transport authority whose area is in England, or two or more such authorities acting jointly, may make byelaws regulating one or more of the following— (a) travel on their local services; (b) the maintenance of order— (i) on their local services; (ii) at bus facilities in their area or combined area; (c) the conduct of persons— (i) while travelling on their local services; (ii) using bus facilities in their area or combined area. (2) The byelaws may, in particular, make provision— (a) with respect to tickets and other things (whether in physical or electronic form) which authorise a person to enter and travel on local services; (b) with respect to the evasion of payment of fares or other charges; (c) with respect to interference with, or obstruction of, local services and bus facilities; (d) prohibiting vaping by persons on local services; (e) prohibiting smoking and vaping by persons at bus facilities; (f) with respect to the prevention of nuisance. (3) The byelaws may provide that a person contravening them is guilty of an offence and liable, on summary conviction, to a fine not exceeding— (a) level 3 on the standard scale, or (b) such lower level or lower amount as is specified in the byelaws. (4) In this section— (a) references to the local services of a local transport authority or authorities are to local services— (i) provided under local service contracts entered into by the authority or authorities under a franchising scheme, or (ii) to which an enhanced partnership scheme made by the authority or authorities relates; (b) “bus facility” means— (i) premises used as a bus station by local services, or for the provision of associated facilities in relation to such a bus station; (ii) a bus shelter and the land on which it stands; (c) “bus station” and “associated facilities” in relation to a bus station have the same meanings as in the Transport Act 1985 (see section 83(5) of that Act); (d) “bus shelter” means a shelter or other accommodation provided at a stopping place for the use of persons intending to travel on local services. (144B) (1) Where a local transport authority or authorities propose to make byelaws under section 144A, they must— (a) publish a copy of the proposed byelaws on their website or websites, and (b) publish on their website or websites and in one or more local newspapers circulating in the authority’s or authorities’ area or combined area a notice of the proposal to make byelaws. (2) The notice must— (a) state the manner in which a printed copy of the proposed byelaws will be open to public inspection, (b) in the case of a notice published in a newspaper, give details of the website or websites where a copy of the proposed byelaws can be found, and (c) state that any person affected by the proposed byelaws may make representations about them to the authority or authorities within the period specified in the notice. (3) The period specified for the purposes of subsection (2)(c) must be a period of at least 28 days beginning with the day after that on which the notice is published. (4) The local transport authority or authorities must not submit the byelaws for confirmation unless they have considered the representations that have been made to them. (5) The Secretary of State may— (a) confirm (with or without modifications) the byelaws submitted for confirmation, or (b) refuse to confirm them. (6) The Secretary of State may fix a date for the coming into force of any byelaws confirmed under subsection (5)(a); but if no such date is fixed the byelaws come into force at the end of the period of 28 days beginning with the day after that on which they are confirmed. (7) The power to make byelaws under section 144A includes the power to make byelaws amending or revoking byelaws made under that section. (8) The Secretary of State may by regulations revoke byelaws made under section 144A. (144C) (1) If the Secretary of State has confirmed byelaws made under section 144A, the local transport authority or authorities which made them must print copies of the byelaws, of which— (a) at least one must be kept at the authority’s principal office or at each of the authorities’ principal offices, (b) one must be sent to the Secretary of State, and (c) one must be supplied to any person who requests it, on payment by the person of such reasonable charge as the authority or authorities may determine. (2) The authority or authorities must publish on their website or websites— (a) a copy of the byelaws, and (b) a notice stating— (i) that the byelaws have been confirmed and when they come into force, (ii) where printed copies of the byelaws can be inspected, and (iii) how printed copies of the byelaws can be obtained. (3) The production of a printed copy of byelaws which is indorsed with a certificate— (a) stating one or more matters specified in subsection (4), and (b) purporting to be signed by an officer of a local transport authority by whom the byelaws purport to have been made, is evidence of what is stated in the certificate. (4) Those matters are— (a) that the byelaws were made by the local transport authority or authorities, (b) that the copy is a true copy of the byelaws, (c) that the byelaws were confirmed by the Secretary of State on the date specified in the certificate, and (d) the date of the coming into force of the byelaws. (144D) (1) An authorised person may— (a) issue a fixed penalty notice (see section 144E) to anyone who that person has reason to believe has committed an offence under— (i) byelaws under section 144A, or (ii) this section; (b) require a person whom the authorised person reasonably suspects of committing or attempting to commit an offence under byelaws under section 144A to do one or both of the following— (i) to give their name and address; (ii) to leave any vehicle or premises in relation to which the byelaws apply. (2) An authorised person may use reasonable force to remove a person who has failed to comply with a requirement under subsection (1)(b)(ii). (3) A person who fails to comply with a requirement under subsection (1)(b) commits an offence and is liable, on summary conviction, to a fine not exceeding level 3 on the standard scale. (4) The Secretary of State may issue guidance about the exercise of functions under this section and section 144E, and local transport authorities whose areas are in England and authorised persons must have regard to the guidance when exercising those functions. (5) The Secretary of State may at any time vary or revoke guidance issued under subsection (4). (6) The Secretary of State must publish— (a) guidance issued under subsection (4), and (b) any variation or revocation of the guidance. (7) In this section “authorised person” means a person authorised for the purposes of this section by the local transport authority or authorities which made the byelaws. (144E) (1) A fixed penalty notice issued under section 144D is a notice offering the person to whom it is issued the opportunity of discharging any liability to conviction for the offence by payment of a fixed penalty to the person specified in the notice. (2) Where a person is issued with a fixed penalty notice in respect of an offence— (a) no proceedings may be taken for the offence before the end of the period of 14 days following the date of the notice; (b) the person may not be convicted of the offence if the person pays the fixed penalty before the end of that period. (3) A fixed penalty notice must— (a) give reasonably detailed particulars of the circumstances alleged to constitute the offence; (b) state the period during which (because of subsection (2)(a)) proceedings will not be taken for the offence; (c) specify the amount of the fixed penalty; (d) state the name and address of the person to whom the fixed penalty may be paid; (e) specify permissible methods of payment. (4) An amount specified under subsection (3)(c) must not be more than £100. (5) A fixed penalty notice may specify two amounts under subsection (3)(c) and specify that, if the lower of those amounts is paid within a specified period (of less than 14 days), that is the amount of the fixed penalty. (6) Whatever other method may be specified under subsection (3)(e), payment of a fixed penalty may be made by pre-paying and posting to the person whose name and address is stated under subsection (3)(d), at the stated address, a letter containing the amount of the penalty (in cash or otherwise). (7) Where a letter is sent as mentioned in subsection (6), payment is regarded as having been made at the time at which that letter would be delivered in the ordinary course of post. (8) In any proceedings, a certificate that— (a) purports to be signed by or on behalf of the chief finance officer of the local transport authority concerned, and (b) states that payment of a fixed penalty was, or was not, received by the date specified in the certificate, is evidence of the facts stated. (9) In this section “chief finance officer”, in relation to a local transport authority, means the person with responsibility for the authority’s financial affairs.

• (2) Subsection (3) of section 235 of the Local Government Act 1972 does not prevent byelaws being made under that section which could also be made under section 144A of the Transport Act 2000 where the local authority making the byelaws made an application to the Secretary of State under regulation 6 of the Byelaws (Alternative Procedure) (England) Regulations 2016 (S.I. 2016/165) before this section came into force.

Transport for London byelaws

29

In the Greater London Authority Act 1999, after Chapter 8 of Part 4 insert—

(244A) (1) Transport for London may make byelaws regulating one or more of the following— (a) travel on London local services; (b) the maintenance of order on London local services; (c) the conduct of persons while travelling on London local services. (2) The byelaws may, in particular, make provision— (a) with respect to tickets and other things (whether in physical or electronic form) which authorise a person to enter and travel on London local services; (b) with respect to the evasion of payment of fares or other charges; (c) with respect to interference with, or obstruction of, London local services; (d) prohibiting vaping by persons on London local services; (e) with respect to the prevention of nuisance. (3) The byelaws may provide that a person contravening them is guilty of an offence and liable, on summary conviction, to a fine not exceeding— (a) level 3 on the standard scale, or (b) such lower level or lower amount as is specified in the byelaws. (244B) (1) An authorised person may— (a) issue a fixed penalty notice (see section 244C) to anyone who that person has reason to believe has committed— (i) a bus byelaws offence, (ii) a premises byelaws offence, or (iii) an offence under this section; (b) require a person whom the authorised person reasonably suspects of committing or attempting to commit a bus byelaws offence to do one or both of the following— (i) to give their name and address; (ii) to leave any vehicle in relation to which the byelaws under section 244A apply. (2) An authorised person may use reasonable force to remove a person who has failed to comply with a requirement under subsection (1)(b)(ii). (3) A person who fails to comply with a requirement under subsection (1)(b) commits an offence and is liable, on summary conviction, to a fine not exceeding level 3 on the standard scale. (4) The Secretary of State may issue guidance about the exercise of functions under this section and section 244C, and Transport for London and authorised persons must have regard to the guidance when exercising those functions. (5) The Secretary of State may at any time vary or revoke guidance issued under subsection (4). (6) The Secretary of State must publish— (a) guidance issued under subsection (4), and (b) any variation or revocation of the guidance. (7) In this section— - “authorised person” means a person authorised for the purposes of this section by Transport for London; - “bus byelaws offence” means an offence under byelaws made under section 244A; - “premises byelaws offence” means an offence under byelaws made under section 25 of the London Transport Act 1969 committed on premises used by a London local service. (244C) (1) A fixed penalty notice issued under section 244B is a notice offering the person to whom it is issued the opportunity of discharging any liability to conviction for the offence by payment of a fixed penalty to Transport for London. (2) Where a person is issued with a fixed penalty notice in respect of an offence— (a) no proceedings may be taken for the offence before the end of the period of 14 days following the date of the notice; (b) the person may not be convicted of the offence if the person pays the fixed penalty before the end of that period. (3) A fixed penalty notice must— (a) give reasonably detailed particulars of the circumstances alleged to constitute the offence; (b) state the period during which (because of subsection (2)(a)) proceedings will not be taken for the offence; (c) specify the amount of the fixed penalty; (d) state the name and address of the person to whom the fixed penalty may be paid; (e) specify permissible methods of payment. (4) An amount specified under subsection (3)(c) must not be more than £100. (5) A fixed penalty notice may specify two amounts under subsection (3)(c) and specify that, if the lower of those amounts is paid within a specified period (of less than 14 days), that is the amount of the fixed penalty. (6) Whatever other method may be specified under subsection (3)(e), payment of the fixed penalty may be made by pre-paying and posting to the person whose name and address is stated under subsection (3)(d), at the stated address, a letter containing the amount of the penalty (in cash or otherwise). (7) Where a letter is sent as mentioned in subsection (6), payment is regarded as having been made at the time at which that letter would be delivered in the ordinary course of post. (8) In any proceedings, a certificate that— (a) purports to be signed by or on behalf of the person with responsibility for the financial affairs of Transport for London, and (b) states that payment of the fixed penalty was, or was not, received by the date specified in the certificate, is evidence of the facts stated.

Safety and accessibility of stopping places

Safety and accessibility of stopping places

30

• (1) The Secretary of State may give guidance about stopping places for local services, and facilities in the vicinity of such stopping places, for the purposes of—

• (a) promoting the safety of persons using such facilities,

• (b) facilitating travel by persons with disabilities (within the meaning given by section 6 of the Equality Act 2010) on local services, or