Legislation – Bus Services Act 2025

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Franchising schemes: procedure

9Report on assessment of proposed scheme

(1)

Section 123D of the Transport Act 2000 (audit) is amended in accordance with subsections (2) to (8).

(2)

For subsection (1) substitute—

“(1)

A franchising authority, or two or more franchising authorities acting jointly, may not proceed with a proposed franchising scheme unless they have obtained a report from an independent approved person on the assessment of the proposed scheme (see section 123B).”

(3)

In subsection (2)—

(a)

omit “auditor’s”;

(b)

for “auditor” substitute “approved person”;

(c)

in paragraph (a), for “123B(3)(d) or (e)” substitute “123B(3)(d) and (e)”.

(4)

For subsection (3) substitute—

“(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 subsection (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.”

(5)

In subsection (5), for “auditor” substitute “approved person”.

(6)

In subsection (6), for “Auditors” substitute “Approved persons”.

(7)

For subsections (7) and (8) substitute—

“(8)

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

(8)

For the heading substitute “Report on assessment of proposed scheme”.

(9)

In section 123E of that Act (consultation)—

(a)

in subsection (1), for “an auditor’s” substitute “a”;

(b)

in subsection (2)(c) omit “auditor’s”.

(10)

The amendments made by this section do not apply in relation to an appointment of a person as an auditor, in relation to a proposed franchising scheme, before this section comes into force.