Nearly eight years after the Bus Services Act enabled city regions to franchise their bus networks, the government has set out its plans to ‘put buses back at the heart of communities’. So, what is the new Bus Services Bill and what could it mean for Local Transport Authorities (LTAs) and passengers?

At the end of December last year, just in time to make a fitting Christmas gift, the Bus Services Bill (No.2) was introduced in the House of Lords and saw its second reading yesterday (8 January). The Bill, in its 31 clauses, aims to reform the bus system by making it easier for LTAs to franchise bus services in their areas through streamlining the franchising process or by choosing the most appropriate operating model that works for their local area.

We are delighted to see the Bill respond to all of the recommendations laid out in our 2023 report, ‘A Smoother Ride’, which we developed with the Local Government Association (LGA). In reviewing the Bus Services Act 2017, and its associated guidance on franchising, the new Bill seeks to take account of lessons learnt from Greater Manchester with a view to smooth and simplify the process. 

Breaking down the Bill

Smoothing the franchising set up: The Bill delivers new powers to all LTAs to take control of their bus services through franchising, including through learning from city region experience in order to streamline the current process. This includes removing the minimum period before services can be provided under a franchise and allowing the first contracts under a franchise to be direct awarded to the incumbent operator as a transitional step to reduce risk.

This could open franchising up to more areas outside of the big city regions, allowing rural authorities and smaller towns or cities the option to franchise parts of their network, or follow a different delivery model more in line with their ambitions. If nothing else, it is another tool in the box for authorities to try and work with operators to get the best networks for passengers.

Making it easier for franchised authorities to deliver for passengers: The Bill makes some important changes to enable franchised authorities to get on and deliver better networks for passengers. Making it easier to vary and develop networks is a major change that we have pushed for. This removes the need to consult on the whole franchising scheme when adding in a new service, making it a much quicker process to deliver on passenger needs.

Similarly, changes to service permits will enable authorities to allow more cross-boundary services where there are benefits to local communities or economies, providing this benefit outweighs any impact on the franchised network.

Supporting enhanced partnership (EP) plans and schemes: Given that most areas of the country currently operate under an EP, its vital that the Bill strengthens legislation to enable authorities and operators to deliver the best networks for their areas. The Bill requires local transport authorities in enhanced partnership areas to identify socially necessary local services and specify arrangements that must be followed if a bus operator wants to cancel or vary such a service.

Other clauses include changes to make amending of an existing EP and accessing data from operators both smoother and faster. Both of these are designed to allow EPs to deliver better outcomes for passengers in a more timely and data driven way. Access to data is key here so that LTAs can work with operators from a more informed position.

Boosting local authority powers: Removing the ban on creating and running new local authority (municipal) bus companies, and providing LTAs with the right set of practical options to reinvigorate local bus markets and ensure they support wider goals for the people and places they serve, is a key part of the Bill.

Further clauses also seek to allow local authorities to design and pay grants to bus operators, enabling them to be targeted at locally important outcomes rather than nationally specified targets. Whilst not attached to any particular funding at the moment, this is a key measure in allowing local authorities to target the things that are important to them, whether that be protecting networks, enhancing networks, or reducing fares.

Other crucial clauses include the granting of enforcement powers for LTA enforcement officers on payment of fares, and standardised powers to make byelaws addressing anti-social behaviour, nuisance and fare evasion. Bus needs to be a safe and secure place, and this is a welcome move to ensuring it remains to be seen in that way.

Rationalising and simplifying data sharing: This is about creating a centralised system to ensure that all bus registration data is inputted into a single source in a consistent format, which could strengthen information sharing between operators, the Traffic Commissioners and the Secretary of State. Although not the most exciting measure on the surface, this will help to ensure that all bus data is in the same format, meaning better information can be produced for the passenger.  

Strengthening accessibility and safety standards and training: There are various interventions to support safer and more accessible transport networks. These include enabling the Secretary of State to issue guidance on making bus stops and stations safer and more accessible for people with disabilities; requiring operators of public service vehicles to check an enhanced criminal records certificate at least every three years for drivers on school services; requiring employers to ensure that drivers and other specified staff complete training at least every five years on disability awareness and disability assistance; and tackling crime (including violence against women and girls) and anti-social behaviour.

These measures are again positive and ensure that the bus continues to provide a high quality, trusted service. It is vital that higher standards for infrastructure come with funding to ensure that LTAs aren’t left choosing between meeting new standards or being able to undertake other planned priority upgrades which could be strategically important or safety critical.

Zero Emission Vehicles: The final substantial clause of the Bill would enable the Secretary of State to set the end date for the sale of non-zero emission buses and to restrict operators from using new non-zero-emission buses to run local services in England outside Greater London. The date of this would be specified in regulation but could not be earlier than 1 January 2030, and it would not apply to local services run under a franchise, including in London. Whilst we support action to enable bus fleets to be decarbonised, particularly through providing clarity on demand, such a provision will need to be accompanied by further support to domestic manufacturers and through a sustainable long term funding source for LTAs and operators to support them to purchase new sustainable bus fleets.

The way forward

The Bill rightly seeks to address gaps and issues in the existing legislation, learning from the experience of Greater Manchester and other Mayoral Combined Authorities taking forward franchising. All of our Principal Members (outside of London, where franchising already exists) are currently at some point in their bus reform journey. This Bill could help broaden these benefits to all types of authorities, strengthening key legislation to help improve services, and offering more ways into franchising or stronger enhanced partnerships. This is not possible for rural and smaller urban areas under the current legislation.

Securing a sustainable future for our bus services is not, however, wholly dependent on having the right legislation in place. We will continue to make the case for a long-term sustainable settlement for bus. Bus is a unique and effective tool of social policy. Investment in bus services, including making those services more affordable, is an investment in social equity and the long-term prosperity of our communities.

Monta Drozdova is Policy and Research Advisor at the Urban Transport Group