Legislation – Bus Services Act 2025
Changes to legislation:
There are currently no known outstanding effects for the Bus Services Act 2025, Section 22.
Changes to Legislation
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Local government functions
22Local government bus companies
(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)
a county council in England,
(b)
a district council in England,
(c)
a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009,
(d)
a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023, or
(e)
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)
“(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)
“(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)
“(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.