Today, the Bus Services (No. 2) Bill was passed into law, marking the start of a new chapter for bus services in England - one that gives local transport authorities across the country the powers they need to shape bus networks around the needs of their communities. Given bus is the most used mode of transport, upon which millions of people rely each day to access work, school, hospital appointments and more, the significance of the Act should not be underestimated.  

We’ve long called for a refresh of the existing legislative framework for buses (see our A smoother ride report from 2023). The Bus Services Act 2017 was an important step forward, but it had unintended consequences for transport authorities, and left gaps and limitations that made it difficult for many areas to enact change across their networks. The new Act addresses those issues head on. It expands and streamlines the powers available, making them accessible to all areas, not just Mayoral Combined Authorities, and provides a more flexible, responsive framework for delivering better bus services. 

Here are our key takeaways on how the Act will help to reshape England’s bus landscape: 

1. Franchising for all 

The Act gives all local transport authorities the power to franchise bus services, without needing the Secretary of State’s approval. This is a major step forward in enabling local control. It also simplifies the franchising process, removing delays and allowing authorities to be more agile in responding to passenger needs. 

It is a change which opens the door for more areas to follow the lead of Greater Manchester, where franchising has already led to improved punctuality, increased patronage, and better value for money. It’s about giving communities the ability to design networks that work for them. 

2. Streamlined processes for franchised areas 

The Act builds on and amends the 2017 legislation to enable franchising authorities to be more responsive. This intervention will allow franchised areas to adapt their networks more quickly, delivering positive benefits to passengers and communities.  

The new powers within the act address a number of unintended consequences in the previous legislation, delivering benefits more efficiently for passengers. 

These include the ability to change networks without having to consult on the whole scheme, just the relevant bits, and the ability to approve more cross border services that are not part of the franchise but are good for local communities and the economy. Whilst these may be seen as small changes, they are a big step in helping us to deliver the bus networks that our regions need.  

3. Strengthening Enhanced Partnerships 

Not every area, of course, will choose to go down the franchising route. The Act strengthens Enhanced Partnerships (EPs), giving authorities more tools to ensure operators deliver tangible benefits for passengers and the partnership works more effectively. 

Strengthening EPs and building on the success of the best performing areas will ensure that all communities - urban and rural - can benefit from high-quality, reliable bus services. 

4. Municipal bus companies: Back on the table 

The ban on creating new municipal bus companies has been lifted through the new Act. Local authorities can now set up and run their own services, giving them a direct lever to improve provision where the market isn’t working. 

This is a welcome move, given the success of existing municipal bus companies in England (such as in Reading and Nottingham), and it provides authorities with yet more options to reinvigorate local bus markets. 

5. Enabling greater accessibility  

The Act introduces a new requirement for authorities to produce bus network accessibility plans, with a focus on improving the travelling experience for disabled passengers. This includes consulting disabled users and setting out how services will become more accessible, safer, more comfortable and easier to use. 

It’s a key step towards making bus services more inclusive, and reflects a growing recognition that accessibility must be built into the heart of transport planning, and not simply an afterthought. 

Our members’ journeys on bus 

Across our network, transport authorities are already leading the way on transforming bus services. Greater Manchester’s Bee Network is live and kicking. Liverpool City Region, West Yorkshire, South Yorkshire, Cambridge and Peterborough, and the West Midlands are all progressing towards franchising. York and North Yorkshire are participating in the Government’s rural franchising pilot. Meanwhile, the East Midlands Combined County Authority is pursuing an ambitious EP. 

This diversity of approaches reflects the strength of the Act: it will empower local areas to choose the model that works best for them.  

Yet we must also acknowledge the need for sustained revenue funding to support these changes. Without it, the ambition and momentum generated by the Act may not be realised. 

We warmly welcome the new Bus Services Act and its recognition of the critical role that local areas play in delivering better buses. We will continue to work with Government to ensure the smooth implementation of the Act, enabling our members to access and use the new powers it provides. 

With the right support, this Act can be the foundation for a true renaissance for the bus, benefitting passengers in every part of England.

Tom Ellerton is Senior Policy Manager and Monta Drozdova is Policy Manager at the Urban Transport Group. Together, they lead UTG’s work on bus.