Consultation outcome

Proposed changes to bus franchising guidance

Updated 17 December 2024

Applies to England

Overview 

We are consulting on proposed changes to government guidance on setting up a bus franchising scheme to better reflect the government’s action plan for buses.  

You can find the draft revised guidance on the GOV.UK page for this consultation.  

We are keen to hear from: 

• local transport authorities 
• bus companies 
• groups representing bus staff or passengers

The government’s action plan for buses

The government is determined to deliver better bus services, grow passenger numbers and drive opportunity to under-served regions. Bus services support our missions to kickstart economic growth and break down barriers to opportunity by connecting people to education and employment opportunities. It is clear, however, that the current system where services are predominantly run on a commercial basis and bus operators decide on the routes and provision is not delivering for communities across England. This has led to declining levels of bus services and passenger numbers. 

The government has pledged to fix this and has developed a plan for delivering better buses, centred around supporting local transport authorities to take back control of their local services.

The Department for Transport is launching a legislative program to fulfil this commitment and enhance the integration and effectiveness of bus networks.  

The Bus Bill, announced in the King’s Speech, is a major part of this programme, but there are also more immediate steps we can take to support local leaders and deliver a better service for passengers.  

This includes removing barriers which currently limit bus franchising powers and empowering local leaders to deliver better buses faster.

As a first step in this plan, we are revising the existing guidance on bus franchising. We have clarified and streamlined the guidance to make what administrative changes we can to make it easier for local authorities to intervene on bus routes. 

Then, later in the Parliamentary session, we will bring forward a Bus Bill to make bus franchising quicker and easier to deliver and will make further changes to this guidance alongside or shortly after Royal Assent. At this stage, the guidance reflects changes which can be made within the existing legal framework.

The government believes that this plan will give local leaders the tools they need to deliver integrated networks which reflect the needs of local communities that rely on them. 

Alongside this, we are building our capacity within the Department for Transport to provide tangible on-the-ground support to local transport authorities (LTAs) throughout the franchising process, should they wish to pursue it.

This work will support the government’s ambitions for devolution by not just giving local authorities new powers, but ensuring that they have the resources to deliver the new devolved powers and functions.

Franchising 

Bus franchising is when an LTA specifies the services which are provided in an area and contracts with operators for those services. LTAs can specify all aspects of a service including route, timetable, fares and branding. If a commercial operator wants to run a bus service into an area which is franchised, it needs permission from the LTA, who grant a ‘service permit’,  

Bus franchising is used extensively across Europe and has existed in London for decades. When implemented effectively, it can deliver transformational improvements in local services.

Greater Manchester is the first LTA to use the powers granted in the 2017 Act to deliver a bus franchising scheme, with the first services launching in September 2023. Greater Manchester report a 5% growth in patronage in its first franchised area in the 6 months from December 2023 to June 2024.

In a franchising scheme, local authorities will determine the details of the services to be provided – where they run, when they run and the standards of the services. Typically bus operators provide their services under contract to the local authority.  No other services can operate in the franchised area without the agreement of the franchising authority.

The guidance sets out how we are giving all LTAs franchising powers, and considerations for LTAs in franchising their bus services.

Opening up bus franchising to all local authorities

Bus franchising powers for LTAs in England, outside of London, were created in the Bus Services Act 2017, which amended the Transport Act 2000.    

Currently, for LTAs other than mayoral combined authorities (MCAs) or mayoral combined county authorities (MCCAs) which wish to prepare a franchising scheme assessment, a 2-stage process is required.

First, regulations must be made which ‘turn on’ access to the franchising powers in the Transport Act 2000 for a particular category or categories of LTA.

Secondly, the Secretary of State for Transport must give their consent to any individual authority from within that category to prepare an assessment of their proposed franchising scheme.    

Powers were automatically activated for MCAs and subsequently MCCAs to prepare a franchising scheme assessment if they chose to do so.   

Alongside publication of this consultation and revisions to the guidance, the government has laid legislation in Parliament which will open up bus franchising to all LTAs. 

The instrument implements the initial stage of this process for all types of LTAs, ensuring that moving forward, they only need to obtain the SoS’s consent to prepare a franchising scheme assessment. 

This guidance sets out the considerations for LTAs in franchising their bus services. Opening up franchising to LTAs is the first stage of the government’s plan to make bus franchising easier for LTAs and today, the Secretary of State has laid legislation in Parliament which would enable any LTA to pursue franchising.

Section 4 of the guidance sets out how the consent process will work in practice.

In considering whether to provide consent, the Secretary of State will take account of the following:

• that the LTA has a clear vision for improving buses – and what this is
• that the LTA has identified the kind of franchising it wants to pursue - see discussion of some potential options at section 17
• that the LTA has a plan for how it intends to develop the franchising assessment and has  identified, after discussion with DfT officials what support is required from DfT
• that a particular office holder (for example the Leader of the Council or the portfolio holder for transport) is responsible for the development of the scheme

We suggest that LTAs initially explore these issues in discussions with departmental officials, particularly to ensure that there is a shared understanding of what support is needed from DfT. This is aimed to both speed up the process and ensuring that learning and best practice are shared.

Following engagement with the department, LTAs will need to formally write and seek approval. Where the Secretary of State gives consent, a notice of consent will be published. When consent is received, the authority must publish a notice that they intend to prepare a franchising assessment. The requirement for the authority to publish a notice also applies to MCAs and MCCAs.

Later in the Parliamentary session, the Department for Transport intends to bring forward a Bus Bill. This bill will include a measure to remove SoS consent provisions for non-MCA/MCCAs to access franchising powers (the second stage of the 2-stage process) as this change can only be achieved via primary legislation.

Do you agree or disagree with the proposal to lower the consent threshold that LTAs are required to meet to prepare a bus franchising scheme assessment?

Do you have any other comments on the consent threshold that LTAs are required to meet to prepare a bus franchising scheme assessment?

Defining the approach to option identification

An enhanced partnership is a legally binding agreement that sets shared aims with regard to bus services. An enhanced partnership can cover any aspect of bus services. Anything not covered by the EP remains the responsibility of the operator or LTA, as in a deregulated system.

All LTAs in England have now either implemented an enhanced partnership or are preparing a franchising business case. This means that in the preparation of the business case, the ‘do nothing’ option is no longer a deregulated market, but rather an enhanced partnership.

The department is aware that the preparation of a franchising assessment can mean that both LTAs and operators think again about what they have to offer in an enhanced partnership scenario, which can result in the enhanced partnership being renegotiated alongside preparation of the franchising business case.

Section 6.3 of the guidance attempts to address this by proposing a new approach to defining the do nothing option. The intention is that LTAs only need to consider the currently available enhanced partnership and the franchising option in the franchising assessment. LTAs may still choose to explore more options if they wish, but do not need to do so.

The guidance proposes a 3 month period following publication of a notice of intention to prepare a franchising assessment, during which LTAs and operators agree any amendments to their enhanced partnership, for inclusion in the do nothing scenario. An extension to this period requires the agreement of the LTA.

Do you agree or disagree with the proposal to revise the approach to the ‘do nothing’ option?

Do you have any other comments on the proposal to revise the approach to the ‘do nothing’ option?

The content of the franchising assessment

The content of the 5 cases for inclusion in the franchising assessment are described in sections 6.5 and 16. As part of the government’s commitment to simplifying the franchising process, these have been reviewed and superfluous requirements have been removed.

In particular, references to bus service improvement plans (BSIPs) have been largely removed, because a franchising assessment will consider a much longer time period than a BSIP. LTAs should still set the franchising assessment in the context of their strategic vision for transport, but this may be their BSIP, local transport plan or any other relevant local plan. 

The expectations of what is included in the cases have in general been reduced. LTAs may nevertheless find it useful to cover a topic which has been removed and are free to do so.

BSIPs are documents written by LTAs which set out their vision for improvements in local bus services.

Do you agree or disagree with the proposed changes to reduce the content LTAs need to provide in the franchise assessment?

Do you have any comments on the guidance on the franchise assessment?

Putting people at the heart of franchising

Section 7 has been added to the guidance, highlighting a number of points around putting passengers at the heart of bus franchising. This includes giving consideration to the Public Sector Equality Duty and measures to improve passenger safety including violence again women and girls. The measures which could be considered include:

• driver training
• reporting mechanisms
• infrastructure design
• using appropriately accredited officers to address antisocial behaviour

Under driver welfare standards, appropriate rest facilities for drivers are considered.

Do you agree or disagree with the addition of the section entitled putting people at the heart of franchising?

Do you have any comments on the section on putting people at the heart of franchising?

Remainder of the guidance

What, if any, suggestions do you have on how the franchising guidance could better:

• support the delivery of the government’s missions
• promote the government’s objectives?

Do you have any comments on any other part of the guidance?

How to respond

See the Ways to respond section of the consultation page on GOV.UK to find out how you can respond to this consultation.

The consultation began on 9 September 2024 and will run until 7 October 2024. Please ensure that your response reaches us before the closing date.

What will happen next

A summary of responses, including the next steps, will be published on the DfT website within 3 months of the consultation closing.

If you have questions about this consultation please contact busreform.consult@dft.gov.uk.

Full list of questions

These questions are listed here to give you an overview of what we are asking.

See the Ways to respond section of the GOV.UK page for this consultation for an online response form and other ways to respond.

Do you agree or disagree with the proposal to lower the consent threshold that LTAs are required to meet to prepare a bus franchising scheme assessment and why?

Do you have any other comments on the consent threshold that LTAs are required to meet to prepare a franchising scheme assessment?

Do you agree or disagree with the proposal to revise the approach to the option identification and why?

Do you have any other comments on the proposal to revise the approach to option identification?

Do you agree or disagree with the proposed changes to reduce the content LTAs need to provide in the franchise assessment and why?

Do you have any other comments on the proposed changes to the franchise assessment?

Do you agree or disagree with the addition of the section entitled ‘putting people at the heart of franchising’ and why?

What, if any, suggestions do you have on how the franchising guidance could better:

• support the delivery of the government’s missions
• promote the government’s objectives?

Do you have comments on any other parts of the guidance?

Freedom of information

Information provided in response to this consultation, including personal information, may be subject to publication or disclosure in accordance with the Freedom of Information Act 2000 (FOIA) or the Environmental Information Regulations 2004.

If you want information that you provide to be treated as confidential, please be aware that, under the FOIA, there is a statutory code of practice with which public authorities must comply and which deals, amongst other things, with obligations of confidence.

In view of this it would be helpful if you could explain to us why you regard the information you have provided as confidential. If we receive a request for disclosure of the information, we will take full account of your explanation, but we cannot give an assurance that confidentiality can be maintained in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not, of itself, be regarded as binding on the department.

The department will process your personal data in accordance with the Data Protection Act (DPA) and in the majority of circumstances this will mean that your personal data will not be disclosed to third parties.

Data protection

Information you provide in response to this consultation, including personal information, may be disclosed in accordance with UK legislation (the Freedom of Information Act 2000, the Data Protection Act 2018, and the Environmental Information Regulations 2004). 

If you want the information that you provide to be treated as confidential, please tell us, but be aware that we cannot guarantee confidentiality in all circumstances. An automatic confidentiality disclaimer generated by your IT system will not be regarded by us as a confidentiality request. We will process your personal data in accordance with all applicable UK data protection laws. See our privacy policy.

View our DfT online form and survey privacy notice for more information on how your personal data is processed in relation to this consultation.

We are also asking all organisations for their name, for identification.

Consultation principles

This consultation is being conducted in line with the government’s consultation principles.

If you have any comments about the consultation process, contact busreform.consult@dft.gov.uk.