Legislation – Bus Services Act 2025
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Franchising schemes: non-franchised services
6Criteria for granting service permits
(1)
Section 123Q of the Transport Act 2000 (application for service permit) is amended in accordance with subsections (2) to (4).
(2)
“(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)
“(8)
In this section—
“cross-boundary service”, in relation to a franchising scheme, means a service that—
(a)
has one or more stopping places in the area to which the scheme relates, and
(b)
has one or more stopping places outside that area;
“relevant area”, in relation to a cross-boundary service, means the combined area of each—
(a)
local transport authority,
(b)
council in Scotland, and
(c)
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)
“(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.
7Registration of services provided under service permits
(1)
The Transport Act 2000 is amended as follows.
(2)
“(4A)
Subsection (2) does not apply in relation to a local service which is provided under a service permit.”
(3)
“(3)
The authority or authorities must inform a traffic commissioner of the grant of a service permit under this section.”
(4)
“123PARegistration exemption for services provided under service permits
(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)
“(2A)
The franchising authority or authorities must inform a traffic commissioner of the revocation or suspension of a service permit under this section.”
(6)
“(ba)
the application of section 123PA in relation to services or classes of services (registration exemption for services provided under service permits),”.
8Substitute road services
(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)
(3)
“(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.”