Consultation outcome

Proposed changes to bus franchising guidance consultation outcome

Updated 17 December 2024

Executive summary

The government is determined to deliver better bus services, grow passenger numbers and drive opportunity to under-served regions. 

As part of this, it has committed to put bus services back into the hands of local leaders and reduce barriers that currently limit the bus franchising process. 

The Department for Transport (DfT) consulted on updates to the guidance to remove more technical barriers to franchising and support safer and more accessible services. The consultation ran from 9 September to 7 October 2024.  

On 9 September the government also laid a new statutory instrument (SI) to open up franchising to all local transport authorities, enabling them to pursue this option and reduce the barriers they currently face. The SI will become law on 18 December 2024.

This summary provides a high-level overview of the consultation responses received. It also outlines the government’s response and the next steps for each area addressed in the original consultation. It is not possible to describe all the responses in detail. A thematic analysis was undertaken to identify the main issues raised.

The government introduced the Bus Services (No.2) Bill on 17 December 2024, which builds on the progress of the statutory instrument and revised guidance

The bill will deliver further changes to make bus franchising even quicker and easier to deliver, alongside other measures on areas such as funding and accessible travel. It will also improve bus services for councils who choose not to franchise, allowing greater flexibility over bus funding, and letting local leaders deliver their own local transport priorities. 

Alongside this, DfT is building its capacity to provide practical support to local transport authorities throughout the franchising process, should they wish to pursue it.

Further bus franchising guidance will be published once the new powers under the buses bill have been enacted.

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.

Read updated guidance on bus franchising.

Summary of responses

There were 73 responses to the public consultation.

DfT received a range of views from individuals, local authorities, bus companies and groups representing bus staff or passengers. In summary:

• 77% respondents supported the proposal to lower the consent threshold that LTAs are required to meet to prepare a bus franchising scheme assessment
• 64% of respondents supported the proposal to revise the approach to option identification
• 60% of respondents supported the proposal to reduce the content LTAs need to provide in the franchising scheme assessment
• 81% of respondents supported the addition of the section entitled ‘Putting People at the Heart of Franchising’

The government will proceed with the proposals and has published updated bus franchising guidance alongside this consultation response, incorporating broader changes based on feedback from respondents.

Introduction

Buses are the most popular form of public transport with 3.6 billion passenger journeys made by local bus in England in the year ending March 2024^{[footnote 1]}. They are an essential part of our national transport system in both urban and rural areas. Whether it’s getting to work, school, the hospital or the shops, many people rely on buses to get them where they need to go.

Modernising the transport infrastructure and delivering better buses is at the heart of the government’s plan to kickstart economic growth in every part of the country and get the country moving. However, passenger numbers and bus service levels have declined. There were:

• 1.8 billion fewer annual bus journeys in England (outside London) in 2023 to 2024 than in 1985 to 1986
• almost 300 million fewer miles driven by buses in England (outside London) in 2023 to 2024 than in 2010^{[footnote 2]}

DfT is embarking on a reform programme to empower local leaders to take control of their bus services and support more integrated and effective bus networks. The buses bill, announced in the King’s Speech on 17 July 2024, is a major part of this but there is more immediate action that DfT is taking that will support local leaders to deliver better buses.

The first step towards better buses was taken on 9 September 2024 when DfT announced a package of bus franchising measures to support this plan. The package comprised 2 elements:

• publication of a consultation to gather views on proposed updates to streamline bus franchising guidance.
• laying of a statutory instrument to open up bus franchising to all local transport authorities (LTAs)

Both measures represent an important step towards achieving the government’s aim of ensuring local authorities have the tools they need to plan and deliver services in a way that suits their needs.

Bus franchising represents one of these tools. It is a model for providing bus services where local authorities grant private companies the exclusive right to operate in a specific area or route. The authorities retain control over important aspects of the service, such as routes, timetables, and fares.

The bus franchising guidance sets out how the franchising legislation operates in practice and outlines the statutory duties that a franchising authority or auditor must have regard to in exercising relevant functions of the guidance.

The consultation ran from 9 September 2024 to 7 October 2024. The aim of the consultation was to seek views on proposals to revise bus franchising guidance.

Section 4.1

DfT proposed to update this section to reflect the laying of the statutory instrument which gives all types of LTAs access to powers to franchise their bus services. Previously, these powers were limited to mayoral combined authorities (MCAs) and mayoral county combined authorities (MCCAs).

The assessment is the first step that authorities use to determine if franchising is suitable for their area.

DfT intends to explore the removal of SoS consent for non-MCA/MCCAs to access franchising powers as part of the buses bill – as this change can only be achieved via primary legislation.

Section 6.3

Revising the process for option identification in the franchising scheme assessment. The proposal updates the guidance to reflect the introduction of enhanced partnerships (EP) for all LTAs in England and introduces a time-limited window for operators to incorporate improvements to an EP with LTAs.

Sections 6.5 and 15

The proposed approach outlines options to reduce the content that LTAs are required to include in a franchising assessment. The proposal makes certain requirements – that were previously mandatory – optional to save LTAs time and resource in pursuing franchising.

Section 7

The insertion of a new chapter entitled ‘Putting People at the Heart of Franchising’. This covers the considerations LTAs should make when pursing franchising. These include:

• Public Sector Equality Duty
• bus driver welfare
• passenger safety, including anti-social behaviour and violence against women and girls

Opening up franchising to all local transport authorities

Questions

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?

Background

The consultation sought views on the proposal to lower the threshold that LTAs are required to meet to prepare a bus franchising scheme assessment. In line with the publication of the consultation, DfT laid a statutory instrument in Parliament which gives bus franchising powers to all types of LTAs in England. These powers were previously limited to MCAs and MCCAs.

The purpose of this statutory instrument is to grant all types of LTAs access to bus franchising powers, enabling them to pursue bus franchising if they choose.

Currently, non-MCA/MCCA LTAs which wish to prepare a franchising scheme assessment are required to undertake a 2-stage pre-assessment process. First, regulations must be made which ‘switch on’ access to the franchising powers in the Transport Act 2000 for a particular category or categories of LTA. Second, the Secretary of State for Transport must give consent to any individual authority from within that category to prepare an assessment of their proposed franchising scheme.  

The statutory instrument implements the initial stage of this process for non-MCA/MCCAs LTAs, ensuring that, moving forward, they only need to obtain the Secretary of State’s consent to prepare a franchising scheme assessment.

Through the Bus Services (No.2) Bill the government will explore the removal of the requirement for the Secretary of State’s consent.

The responses that DfT received and proposed next steps are outlined below.

Comments

Of the 73 respondents:

• 77% supported the proposal
• 2% did not support the proposal
• 10% responded don’t know
• 11% did not answer

The responses in support of the proposal highlighted the following themes:

• the benefits of franchising are clear and making this more widely available is positive  
• it will mean bus services will be more responsive to community needs
• it makes the process less onerous for LTAs wishing to pursue franchising, which is of particular benefit for those with less capacity

While the proposal received majority support, some respondents – including industry representatives and local authorities – raised the following caveats and concerns:

• despite supporting the lowering of the threshold, there still needs to be sufficient oversight and a robust franchising scheme assessment
• it could be difficult for rural areas to take advantage of this offer
• despite this change, the franchising assessment process will still require significant resources and incur substantial costs

One respondent said:

It is imperative that LTAs have to set out a clear and cohesive case for franchising before an assessment is undertaken to ensure that taxpayer money, time and resource is not wasted on an unsound process.

The majority of the respondents that mentioned the proposal to remove Secretary of State consent welcomed the change to further reduce the barriers that LTAs – which aren’t MCAs or MCCAs – face when pursuing franchising.

One respondent suggested that DfT could update bus franchising guidance to encourage LTAs to work with rural areas as part of the franchising assessment and only permit Secretary of State consent when this has been demonstrated to a sufficient standard.

Another respondent remarked that lowering the consent threshold could also benefit LTAs that are not currently pursuing franchising. They suggested that this change:

May incentivise greater levels of participation and commitment from bus operators to working in partnership with local authorities, through Enhanced Partnership, knowing that franchising is a much more realistic and achievable alternative than previously.

Several responses emphasised the need for DfT to clearly state in the guidance that alternatives to franchising are valid options and that franchising may not be suitable for every area. This request is aimed at managing public expectations and promoting a balanced perspective.

Next steps

Having considered the responses from the consultation, the government will proceed with the proposed approach to lower the consent threshold, aiming to reduce the barriers that non-MCA/MCCA LTAs encounter in pursuing franchising.

This work will support ambitions for devolution by empowering local leaders to take control of their bus services and choose the most suitable approach for their areas. This step does not mandate LTAs to franchise – it is about providing them with a suite of tools to support their communities and deliver better bus services.

DfT understands that barriers to franchising remain. This change is an important first step in a wider reform programme. The buses bill will deliver further changes to make franchising easier and cheaper to deliver.

DfT is also building its capacity to deliver support to LTAs throughout the franchising process, should they wish to pursue it. Regarding the rigour of the franchising process, LTAs are already required to obtain an independent assurance report on their franchising assessments and conduct a consultation at subsequent stages. The lowering of the threshold for consent, on the other hand, reduces the requirement that LTAs set out a range of detailed information upfront which is more appropriately developed and considered as part of franchising assessments themselves.

DfT acknowledges the concerns from the minority of respondents on the proposal to remove Secretary of State consent from the process through the forthcoming buses bill. However, DfT is clear that LTAs are best placed to make decisions about their local bus services.

DfT also understands that franchising is not the most suitable approach for every area. DfT will amend the guidance to make clear, upfront, that various approaches to manage bus services are available to LTAs.

Defining the approach to option identification

Questions

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?

Background

The consultation sought views on a revised approach to option identification.

All LTAs in England have now either implemented an Enhanced Partnership (EP) or are preparing a franchising business case. This means that, in the preparation of the business case, the option which franchising is compared against is no longer a deregulated market, but rather an EP.

The EP is a statutory partnership between one or more LTA and their local bus operators that sets out how they will work together to deliver bus service improvement plan (BSIP) outcomes in the defined geographical area(s) set out in the EP.

DfT is aware that the preparation of a franchising assessment can mean that both LTAs and operators think again about how their EP is constituted, which can result in the EP being renegotiated alongside preparation of the franchising business case.

The revised section 6.3 of the guidance attempts to address this by proposing a new approach to defining option identification. The intention is that LTAs only need to consider the currently available EP 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 revised section also introduces a 3-month period following publication of a notice of intention to prepare a franchising assessment, during which LTAs and operators agree to any amendments to their EP, for inclusion in the baseline scenario. An extension to this period requires the agreement of the LTA.

The responses received and next steps are summarised below.

Comments

Of the 73 responses:

• 64% supported the proposal
• 11% did not support the proposal
• 6% responded don’t know
• 19% did not answer

The following reasons were given in support of the proposal:

• LTAs already have an EP in place unless they have implemented franchising. The updated guidance reflects the change in context
• it reduces bureaucracy and will lead to more responsive, clear and faster decision making
• the time-limited window makes the process more efficient and maintains momentum
• clarifies that improvements are incorporated into EPs in a ‘do nothing’ scenario ensuring that these improvements aren’t overlooked

Of those who did not support the proposal, the following reasoning and concerns were expressed:

• The time-limited window is unfair – particularly for Small to Medium Enterprises (SMEs) – given data lead-in times among other factors

A small group of industry representatives also expressed wider concerns about automatically incorporating EP improvements if franchising is not pursued. Additionally, some respondents requested funding to support LTAs in delivering improvements in cases where franchising is not pursued.

A small number of respondents spanning various sectors added that DfT must take more decisive action to ensure that EPs effectively meet the needs of the communities they serve. Specifically, one respondent suggested that LTAs require enhanced powers to enforce EPs and ensure compliance. Additionally, DfT should showcase examples of ‘best practice’ EPs to guide and inspire improvements across the network.

Some respondents asked DfT to strengthen the language used in the guidance where appropriate to promote effective collaboration between local transport authorities and operators, while clarifying the specific responsibilities of each party.

Next steps

Having considered the responses from the consultation, DfT will progress its proposal to revise the option identification process and will update the guidance accordingly. This change acknowledges the introduction of EPs for all LTAs and aims to streamline and expedite the franchising process.

The establishment of a time-limited window encourages proactive engagement from operators and helps prevent delays. For those who raised concerns about this window, LTAs have the discretion to extend the time period where necessary.

The government is currently undertaking a review into EPs with a view to strengthen collaboration and delivery.  Our aim is that this will identify best practice in both the content and execution of EPs and lead to DfT setting new minimum expectations for future high-quality partnerships.

Finally, the DfT will update guidance to encourage collaborative working between LTAs and operators in line with responses received.

The content of the franchising assessment

Questions

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?

Background

The content of the 5-case business case model (strategic, economic, commercial, financial and management) 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.

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

The revised guidance allows LTAs the flexibility to consider any long-term transport vision documents, which can include BSIPs if relevant, but doesn’t limit them to this.

Comments

Of the 73 responses:

• 60% supported the proposal
• 10% did not support the proposal
• 10% responded don’t know
• 20% did not answer

The following reasons were given in support of the proposal:

• reducing the burden and cost seems sensible 
• simplifying the content LTAs need to provide in the franchise assessment will also enable smaller authorities, with more limited human and financial resources, to consider a franchising scheme
• the revised guidance gives LTAs increased flexibility

A small number of respondents from local authorities felt that removing BSIP references might compromise alignment across plans.

Some industry representatives expressed concern that simplifying the process might compromise its thoroughness and emphasised the importance of LTAs fully understanding the risks before considering franchising.

Some respondents also highlighted challenges faced by SMEs due to limited resources and flagged parts of the process as unfeasible.

Several responses spanning various sectors requested that the franchising scheme assessment require LTAs to illustrate their consideration of franchising on neighbouring authorities and any other relevant authorities who are impacted by the proposal.

One respondent requested that DfT funds specialised support to assist LTAs with various aspects of the process, including tendering and mobilisation.

Next steps

Having considered the responses from the consultation, DfT will proceed with its proposed approach to reduce the content required in the franchising scheme assessment. The proposed changes aim to streamline and accelerate the franchising process.

DfT acknowledges the feedback received from those who do not support the proposal. However, the revised approach gives the LTAs the option to include elements, such as the BSIP, in their franchising assessment but it is not a requirement. This means that LTAs that find the document useful can continue to reference it in their assessments.

There is strong support for strengthening the guidance to encourage LTAs to collaborate more closely with neighbouring authorities. DfT will add a reference to this within the guidance.

Additionally, DfT acknowledges the responses highlighting support for SMEs. It will engage with key industry representatives advocating for SME interests and develop targeted questions for inclusion in a future consultation.

DfT is commencing work with LTAs undergoing the franchising process to develop templates to support them through the process and save their time and resource. It also intends to develop a similar approach, in partnership with pilot LTAs, for new types of franchising approaches drawn from those identified in the franchising guidance.

Putting people at the heart of franchising

Questions

Do you agree or disagree with the addition of the section entitled ‘Putting People at the Heart of Franchising’ and why?

Do you have any comments on the section ‘Putting People at the Heart of Franchising’?

Background

Authorities have a duty under the Public Sector Equality Duty to eliminate discrimination, advance equality of opportunity and foster good relations among diverse groups.

In revising and implementing their franchise proposals, it is crucial for authorities to adopt a people-centred design approach that prioritises the needs and experiences of all users, particularly those from protected characteristics groups. This includes actively engaging with communities early on in the process to understand their needs and preferences and ensuring that services and infrastructure are accessible, inclusive, and equitable.

The proposed insertion of the chapter entitled ‘Putting People at the Heart of Franchising’ highlights the importance of the personal safety of passengers and staff when implementing a franchising scheme, with the aim of reducing risks related to violence, harassment, and discrimination including Violence Against Women and Girls. It also outlines measures which could be used to improve passenger safety, including the following:

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

Comments

Of the 73 responses:

• 81% supported the proposal
• 2% did not support the proposal
• 6% responded don’t know
• 11% did not answer

The following reasons were given in support of the proposal:

• there was strong support for prioritising both passenger safety and driver welfare, with many recognising the importance of ensuring safe and comfortable conditions for all
• removing barriers to access was widely endorsed, with many noting that services need to meet users’ needs. Some noted that improving accessibility could also increase ridership, making it a sound business decision

However, responses from various sectors noted that some sections of the proposal were too vague and suggestions were offered to make the content more specific and impactful.

The proposal was deemed relevant not only to the franchising context but also to EPs and the bill, suggesting the need for alignment across these frameworks.

Finally, there was a call for greater engagement of bus users in the decision-making process from individuals and groups representing passengers.

Next steps

DfT welcomes the positive feedback received and will proceed with inserting the chapter into the revised bus franchising guidance based on the views provided.

DfT is committed to ensuring that passengers feel safe on public transport and that barriers to access should be reduced.

DfT has incorporated suggestions on the language used into section 7 of the guidance on Driver Welfare Standards based on the feedback provided. It has also added a reference to the Protection from Sex-based Harassment in Public Act 2023 and possible accreditation.

Further consideration of the detailed proposals will be made in the longer term. Additional bus franchising guidance will be published once the new powers under the buses bill have been enacted.

Alignment with government missions and objectives

Questions

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?

Background

DfT received 35 responses to this question. The key themes were as follows:

• franchising guidance could better demonstrate alignment with net zero ambitions, decarbonisation and reducing emissions
• effective public transport has the potential to address inequalities, improve air quality, fight climate change and boost the economy
• guidance could be used to benefit certain groups such as rural areas and SMEs

Next steps

Having considered the responses from the consultation, DfT has updated guidance based on the feedback provided to reflect the government’s commitment to working with local governments to decarbonise the bus fleet. 

Further consideration of these views will form part of a subsequent consultation on bus franchising guidance, which will take place after the introduction of the buses bill.

Other comments

Questions

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

Other points raised by respondents that fell outside the scope of the consultation have been noted and passed onto relevant policy teams for consideration. These are summarised below:

• future funding certainty
• future of £2 fare cap
• franchising models
• transitional arrangements
• the English National Concessionary Travel Scheme
• legal risks around franchising
• zero emission buses

Conclusion

The government introduced the Bus Services (No.2) Bill on 17 December. This bill represents the next phase in the government’s ambitious bus reform agenda, aimed at improving the passenger experience and increasing bus usage nationwide.

The bill seeks to deliver new powers for local leaders to empower them to choose the model that works best in their area, whether that be franchising, strengthened EPs with private operators, or local authority owned bus companies.

The bill will also make bus travel more accessible and inclusive by setting requirements for mandatory training for staff including drivers and those who deal directly with the travelling public or with issues related to the travelling public. This training will be on preventing and/or responding to incidents of violence against women and girls as well as anti-social behaviour incidents that potentially affect the personal safety of any passenger, member of the public, or staff. This measure will also extend requirements for relevant bus staff to undertake training relating to disabled passengers. 

It will also provide powers for the Secretary of State to produce statutory guidance on the inclusivity of the design of bus and coach stations and stops, and to require authorities commissioning work to provide new or upgrade existing facilities to pay due regard to this guidance.

The bill contains further measures which aim to deliver safer, more reliable networks that provide the vital connections people need. This reform strives to make buses an appealing and trusted choice for travel across the country.

The Autumn Budget 2024 confirmed over £1 billion of funding to introduce a new £3 cap on single bus fares and to support local areas and bus operators in providing high quality bus services across the country. This includes:

• £243 million for bus operators through the longstanding Bus Service Operators Grant (BSOG)
• £712 million of funding for local authorities through the BSOG, and funding to deliver their Bus Service Improvement Plans

The transformative work the government is doing will turn the tide by giving communities the opportunity to control local bus services and have a real say in building local transport networks that work for them. 

Modernising our transport infrastructure and delivering better buses is at the heart of our plan to kickstart economic growth in every part of the country and get the country moving. Our plans will deliver a better service for passengers and give local authorities a choice over the bus system that works best for them.

Consultation principles

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

If you have any comments about the consultation process, contact:

Consultation Co-ordinator
Department for Transport
Zone 1/29 Great Minster House
London SW1P 4DR

Email: consultation@dft.gov.uk

1. Annual bus statistics report: year ending March 2023 (revised) ↩

2. Bus statistics (bus01a, bus01a_hist and bus02a) ↩