Legislation – Bus Services Act 2025

“Schedule 9AProcedure for varying franchising scheme

Section 123MA(3)

Part 1Adding to scheme area

Application

1

A franchising authority or authorities must comply with the requirements of this Part of this Schedule before varying the area specified under section 123H(2)(a) in a franchising scheme where the variation adds to the scheme area.

Assessment

2

(1)

The franchising authority or authorities must prepare an assessment of the proposed variation.

(2)

The assessment must—

(a)

describe the effects that the proposed variation is likely to produce, and

(b)

compare the proposed variation to making an enhanced partnership plan or scheme in relation to the additional area.

(3)

The assessment must also include consideration of—

(a)

whether the proposed variation would contribute to the implementation of—

(i)

the authority’s or authorities’ policies under section 108(1)(a), and

(ii)

other policies affecting local services that the authority or authorities have adopted and published,

(b)

whether the proposed variation 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,

(c)

how the authority or authorities would operate the scheme as proposed to be varied,

(d)

whether the authority or authorities would be able to afford to operate the scheme as proposed to be varied,

(e)

whether the scheme as proposed to be varied would represent value for money, and

(f)

the extent to which the authority or authorities are likely to be able to secure that local services in the area of the scheme as proposed to be varied are operated under local service contracts.

(4)

Sub-paragraphs (2) and (3) do not prevent inclusion of other matters.

(5)

The Secretary of State must issue guidance concerning the preparation of an assessment under this paragraph, and that guidance may, in particular, include guidance about methods to be used when assessing a proposed variation.

(6)

Franchising authorities must have regard to any such guidance.

(7)

In this paragraph “relevant local authority” means—

(a)

a local transport authority,

(b)

a London transport authority,

(c)

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

(d)

a council in Scotland.

Notice of assessment

3

Before preparing an assessment of a proposed variation under paragraph 2, the franchising authority or authorities must publish, in such manner as they consider appropriate, a notice stating that they intend to prepare such an assessment.

Report on assessment

4

(1)

The franchising authority or authorities may not proceed with the proposed variation unless they have obtained a report from an independent approved person on the assessment of the proposed variation (see paragraph 2).

(2)

The report must state whether, in the opinion of the approved person—

(a)

the information relied on by the authority or authorities in considering the matters referred to inparagraph 2(3)(d) and (e) is of sufficient quality,

(b)

the analysis of that information in the assessment is of sufficient quality, and

(c)

the authority or authorities had due regard to guidance issued under paragraph 2 in preparing the assessment.

(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 sub-paragraph (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.

(4)

Franchising authorities must have regard to any such guidance.

(5)

The Secretary of State must issue guidance concerning the matters to be taken into account by an approved person when forming an opinion as to whether the information relied on, and the analysis of that information, by an authority is of sufficient quality for the purposes of sub-paragraph (2).

(6)

Approved persons must have regard to any such guidance.

(7)

In this paragraph “approved person” means a person specified, or of a description specified, in regulations made by the Secretary of State.

Consultation

5

(1)

This paragraph applies if, after a report under paragraph 4, the authority or authorities wish to proceed with the proposed variation.

(2)

The authority or authorities must—

(a)

publish a consultation document relating to the proposed variation (see paragraph 6),

(b)

publish the assessment of the proposed variation,

(c)

publish the report on that assessment, and

(d)

give notice of the proposed variation in such manner as the authority or authorities consider appropriate for bringing it to the attention of persons in the area to which the scheme as proposed to be varied relates.

(3)

A notice under sub-paragraph (2)(d) must—

(a)

describe the proposed variation, and

(b)

state where copies of the proposed variation and the documents mentioned in sub-paragraph (2)(a) to (c) may be inspected.

(4)

After giving notice under sub-paragraph (2)(d), the authority or authorities must consult—

(a)

all persons operating local services which have one or more stopping places in the area or areas to which the scheme as proposed to be varied relates,

(b)

all other persons holding a PSV operator’s licence or a community bus permit who would, in the opinion of the authority or authorities, be affected by the proposed variation,

(c)

such persons as appear to the authority or authorities to represent employees of persons falling within paragraph (a),

(d)

such organisations appearing to the authority or authorities to be representative of users of local services as they think fit,

(e)

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,

(f)

the Welsh Ministers if, in the opinion of the authority or authorities, any part of Wales would be affected by the proposed variation,

(g)

any other relevant local authority any part of whose area would, in the opinion of the authority or authorities, be affected by the proposed variation,

(h)

a traffic commissioner,

(i)

the chief officer of police for each police area covering the whole or part of the area to which the scheme as proposed to be varied relates,

(j)

the Passengers’ Council, and

(k)

the Competition and Markets Authority.

(5)

The authority or authorities may modify the proposed variation after consulting those persons and organisations.

(6)

In sub-paragraph (4)(g) “relevant local authority” means—

(a)

a local transport authority,

(b)

a district council,

(c)

a National Park authority,

(d)

the Broads Authority,

(e)

a London transport authority,

(f)

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

(g)

a council in Scotland.

Consultation document

6

(1)

A consultation document under paragraph 5(2)(a) relating to the proposed variation must include—

(a)

a description of the area to which the scheme as proposed to be varied relates,

(b)

a description of areas within that area for which different provision is proposed to be made, if such provision is proposed to be included in the scheme as proposed to be varied,

(c)

a description of the local services that are proposed to be provided under local service contracts,

(d)

a description of the local services that are proposed to be excepted from regulation arising because of the scheme as proposed to be varied,

(e)

the date on which the scheme is proposed to be varied,

(f)

the date or dates by which it is proposed that local service contracts first be entered into under the scheme as proposed to be varied,

(g)

the period or periods it is proposed will expire between the making of local service contracts and the provision of local services under such contracts,

(h)

a description of the authority’s or authorities’ proposed plans for consulting in order to seek views on how well the scheme as varied is working,

(i)

a statement about how, in conducting the procurement process for the provision of local services under the scheme as varied, the authority or authorities propose to facilitate the involvement of small and medium-sized operators in the provision of local services, and

(j)

the date by which responses to the consultation must be received.

(2)

The consultation document must also include a summary of the assessment prepared under paragraph 2 in relation to the proposed variation.

Response to consultation

7

(1)

A franchising authority or authorities that conduct a consultation under paragraph 5 must publish a report setting out—

(a)

the authority’s or authorities’ response to the consultation;

(b)

the authority’s or authorities’ decision on whether to vary the franchising scheme.

(2)

If the decision is to vary the franchising scheme, the report must be published at the same time as the notice of the decision is published under section 123M(2)(a).

(3)

The authority or authorities must give notice of the report to a traffic commissioner.

(4)

If the authority or authorities decide to vary the franchising scheme, the report must set out how, in conducting the procurement process for the provision of local services under the scheme as varied, the authority or authorities will facilitate the involvement of small and medium-sized operators in the provision of local services.

(5)

If a franchising authority are a mayoral combined authority, the function of deciding whether to vary the franchising scheme is a function of the combined authority exercisable only by the mayor acting on behalf of the combined authority (including in a case where the decision is to vary a scheme jointly with one or more other franchising authorities).

(6)

If a franchising authority are a mayoral CCA, the function of deciding whether to vary the franchising scheme is a function of the combined county authority exercisable only by the mayor acting on behalf of the combined county authority (including in a case where the decision is to vary a scheme jointly with one or more other franchising authorities).

Part 2Reducing scheme area

Application

8

A franchising authority or authorities must comply with the requirements of this Part of this Schedule before varying the area specified under section 123H(2)(a) in a franchising scheme where the variation does not add to the scheme area.

Consultation

9

(1)

The authority or authorities must—

(a)

publish a consultation document relating to the proposed variation (see paragraph 10), and

(b)

give notice of the proposed variation in such manner as the authority or authorities consider appropriate for bringing it to the attention of persons in the area to which the scheme relates.

(2)

A notice under sub-paragraph (1)(b) must—

(a)

describe the proposed variation, and

(b)

state where copies of the proposed variation and the consultation document may be inspected.

(3)

After giving notice under sub-paragraph (1)(b), the authority or authorities must consult—

(a)

all persons operating local services which have one or more stopping places in the area or areas to which the scheme relates,

(b)

all other persons holding a PSV operator’s licence or a community bus permit who would, in the opinion of the authority or authorities, be affected by the proposed variation,

(c)

such persons as appear to the authority or authorities to represent employees of persons falling within paragraph (a),

(d)

such organisations appearing to the authority or authorities to be representative of users of local services as they think fit,

(e)

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,

(f)

the Welsh Ministers if, in the opinion of the authority or authorities, any part of Wales would be affected by the proposed variation,

(g)

any other relevant local authority any part of whose area would, in the opinion of the authority or authorities, be affected by the proposed variation,

(h)

a traffic commissioner,

(i)

the chief officer of police for each police area covering the whole or part of the area to which the scheme relates,

(j)

the Passengers’ Council, and

(k)

the Competition and Markets Authority.

(4)

The authority or authorities may modify the proposed variation after consulting those persons and organisations.

(5)

In sub-paragraph (3)(g) “relevant local authority” means—

(a)

a local transport authority,

(b)

a district council,

(c)

a National Park authority,

(d)

the Broads Authority,

(e)

a London transport authority,

(f)

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

(g)

a council in Scotland.

Consultation document

10

A consultation document under paragraph 9 relating to the proposed variation must include—

(a)

a description of the area to which the scheme as proposed to be varied relates,

(b)

a description of the local services that are proposed to be provided under local service contracts under the scheme as proposed to be varied,

(c)

the date on which the scheme is proposed to be varied, and

(d)

the date by which responses to the consultation must be received.

Response to consultation

11

(1)

A franchising authority or authorities that conduct a consultation under paragraph 9 must publish a report setting out—

(a)

the authority’s or authorities’ response to the consultation;

(b)

the authority’s or authorities’ decision on whether to vary the scheme.

(2)

If the decision is to vary the franchising scheme, the report must be published at the same time as the notice of the decision is published under section 123M(2)(a).

(3)

The authority or authorities must give notice of the report to a traffic commissioner.

(4)

If a franchising authority are a mayoral combined authority, the function of deciding whether to vary the franchising scheme is a function of the combined authority exercisable only by the mayor acting on behalf of the combined authority (including in a case where the decision is to vary a scheme jointly with one or more other franchising authorities).

(5)

If a franchising authority are a mayoral CCA, the function of deciding whether to vary the franchising scheme is a function of the combined county authority exercisable only by the mayor acting on behalf of the combined county authority (including in a case where the decision is to vary a scheme jointly with one or more other franchising authorities).

Part 3Other variations

Application

12

A franchising authority or authorities must comply with the requirements of this Part of this Schedule before varying a franchising scheme where the variation—

(a)

does not include a variation of the area specified under section 123H(2)(a) in the scheme, but

(b)

does include one or more of the following—

(i)

a variation of additional facilities identified under section 123A(3)(d) in the scheme;

(ii)

a variation of the plans for consultation included in the scheme under section 123A(9);

(iii)

a variation of the local services specified under section 123H(2)(b) in the scheme;

(iv)

a variation of the scheme sub-areas specified under section 123H(3)(a) in the scheme;

(v)

a variation of the period specified under section 123H(2)(d) or (3)(c) in the scheme;

(vi)

a variation of the local services that are excepted under section 123H(5) from regulation arising because of the scheme.

Consultation

13

(1)

The franchising authority or authorities must consult—

(a)

in the case of a variation mentioned in paragraph 12(b)(ii), (iii), (iv) or (vi)—

(i)

the Welsh Ministers if, in the opinion of the authority or authorities, any part of Wales would be affected by the proposed variation,

(ii)

any other relevant local authority any part of whose area would, in the opinion of the authority or authorities, be affected by the proposed variation,

(iii)

such organisations appearing to the authority or authorities to be representative of users of local services as they think fit, and

(iv)

the Passengers’ Council,

(b)

in the case of a variation mentioned in paragraph 12(b)(iv) or (v), the Competition and Markets Authority,

(c)

in the case of a variation mentioned in paragraph 12(b)(v), a traffic commissioner, and

(d)

in the case of any variation mentioned in paragraph 12(b)—

(i)

persons operating local services who would, in the opinion of the authority or authorities, be affected by the proposed variation,

(ii)

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, and

(iii)

any other persons whom, in the opinion of the authority or authorities, it would be appropriate to consult.

(2)

In sub-paragraph (1)(a)(ii), “relevant local authority” means—

(a)

a local transport authority,

(b)

a district council,

(c)

a National Park authority,

(d)

the Broads Authority,

(e)

a London transport authority,

(f)

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

(g)

a council in Scotland.

Response to consultation

14

(1)

A franchising authority or authorities that conduct a consultation under paragraph 13 must publish a report setting out—

(a)

the authority’s or authorities’ response to the consultation;

(b)

the authority’s or authorities’ decision on whether to vary the scheme.

(2)

If the decision is to vary the franchising scheme, the report must be published at the same time as the notice of the decision is published under section 123M(2)(a).

(3)

The authority or authorities must give notice of the report to a traffic commissioner.

(4)

If a franchising authority are a mayoral combined authority, the function of deciding whether to vary the franchising scheme is a function of the combined authority exercisable only by the mayor acting on behalf of the combined authority (including in a case where the decision is to vary a scheme jointly with one or more other franchising authorities).

(5)

If a franchising authority are a mayoral CCA, the function of deciding whether to vary the franchising scheme is a function of the combined county authority exercisable only by the mayor acting on behalf of the combined county authority (including in a case where the decision is to vary a scheme jointly with one or more other franchising authorities).”