Guidance

EU Regulation 1071/2009: further guidance on the operation of the ‘short distance’ exemption’ in Great Britain

Updated 30 December 2020

1. Policy overview

In order to be eligible for a section 19 or 22 permit, an operator must first demonstrate to the permit issuer that they satisfy one of the exemptions to EU Regulation 1071/2009, before satisfying the ‘not-for-profit’ and other criteria set out in the Transport Act 1985. The EU regulation sets out requirements for organisations operating vehicles that can carry more than 8 passengers in return for payment. Operators who are not exempt from the EU regulation, and wish to charge for the services they provide, must obtain a public service vehicle operator’s licence.

Article 1(5) of the EU regulation provides for an exemption to the requirements of the EU regulation for “…road transport operators engaged exclusively in national transport operations having only a minor impact on the transport market because of…the short distances involved.…” – the ‘short distance’ exemption.

Whether an operator meets this exemption should be decided on a case-by-case basis by a permit issuer.

1.1 Definition of a ‘short distance’

An automatic short distance, except on an occasional basis, has been defined in legislation as either:

• any service within a radius of ten miles, with the radius being measured from a specified central point

or

• a distance of ten miles measured in a straight line from the first point at which passengers are able to embark to the last point at which passengers are able to disembark

This will apply to both section 19 and 22 permit users.

The legislation also allows for a case to be made by the operator to the permit issuer of the existence of extenuating circumstances that a longer distance than the automatic ten-mile ‘short distance’, should apply in less densely populated areas, due to the nature of the areas in which they operate. This will need to be considered on a case-by-case basis.

1.2 Definition of ‘on an occasional basis’

Occasional services are services which do not fall within the definition of ‘regular services’ and the main characteristic of which is the carriage by bus or coach of groups of passengers constituted on the initiative of the customer or the carrier themselves. Such services may be operated with some degree of frequency without thereby ceasing to be occasional services. They should be in addition to the regular services operated by an organisation (i.e. dial-a-ride, community bus services etc) and must not exceed 10% of the mileage of all vehicles operated by the organisations.

Occasional services cannot take up or set down new passengers during the journey. Their purpose should be for leisure or learning activities (outside a formal educational environment). They can be either seasonal, e.g. a day trip to a Christmas market or seaside town or festival, or to different locations, e.g. garden centre or museum.

‘Regular services’ are services which provide for the carriage of passengers according to a specified frequency and along specified routes, whereby passengers may be taken up or set down at predetermined stopping points. Therefore, a service operated regularly to the same location and for the same purpose cannot be deemed occasional, i.e. weekly service to a shopping centre.

1.3 Next steps

Existing permit holders have to satisfy themselves that they can be exempt from the EU regulation. This means that they can provide the relevant evidence, if requested, that they satisfy one of the exemptions to the EU regulation, i.e. the ‘non-commercial’ exemption, or the ‘main occupation’ exemption, or the ‘short distance’ exemption which will come into effect on 1 October 2019. If so, they do not need to take any further action at this stage.

An operator which needs to apply for or renew their permit(s) needs to bring the relevant evidence to the permit issuer that they satisfy one of the exemptions to the EU Regulation. From 1 October 2019, operators will be able to apply for permits under the ‘short distance’ exemption if the services that they operate meet the criteria of that exemption.

More information on the rules for section 19 and section 22 permits and how to apply for them is available in the guidance. 

2. Question and answers

1/ If an organisation fully qualifies under one of the exemptions, is it then exempt regardless of whether it would qualify under another?

Answer. Yes. If one exemption is satisfied, then an operator would not need to show that they satisfy any of the other exemption criteria.

2/ Could a single section 19 or 22 permit be used to run some services that comply with the ‘short distance’ exemption, and others which comply with the non-commercial exemption? If not, could an operator have separate permits?

Answer. No. The ‘main occupation’ exemption and the ‘non-commercial’ exemption - pending a definitive judicial interpretation of the term “exclusively for non-commercial purposes” – apply to the organisation or body to which the permit is issued. If one of those exemptions is satisfied, then an operator would not need to show that they satisfy any of the other exemption criteria and all their permits will be issued on this basis.

For example, if an organisation satisfies the ‘main occupation’ exemption, then all their permits will be issued on this basis, even though the organisation might operate two services which fall within a ten-mile radius from their community centre.

3/ Could a single section 19 or 22 permit be used to run different services that each comply with the short distance exemption under either measurement, or would they need to stick to one measurement applied across all services? If not, could an operator have separate permits that enable them to run services under each short distance measurement?

Answer. Yes. The operator needs to specify which measurement the services that they operate satisfy and bring the relevant evidence to the permit issuer when applying for permits.

An operator can apply for several permits under each measurement. For example, an operator could have three permits for three vehicles operating a dial-a-ride within a ten-mile radius of where the buses are kept overnight, and three permits for three vehicles operating three services of no longer than 10 miles in a straight line from the first point at which passengers are able to embark to the last point at which passengers are able to disembark.

4/ Community Bus Services are, by definition, open to the general public. Can an operator apply for a permit for Community Bus Services under the ‘short distance’ exemption?

Answer. Yes. The definition of the automatic short distance (see in Policy Overview above) applies to both section 19 and 22 permit users. An operator running Community Bus services can make the case to the permit issuer of the existence of extenuating circumstances that a longer distance than the automatic short distance should apply in less densely populated areas, due to the nature of the areas in which they operate. This will need to be considered on a case-by-case basis.

5/ How is a ‘short distance’ defined? Could the permit issuer express a threshold limit by reference to practical geography?

Answer. An automatic short distance, except on an occasional basis, has been defined in legislation as:

• any service within a radius of 10 miles, with the radius being measured from a specified central point

or

• a distance of ten miles measured in a straight line from the first point at which passengers are able to embark to the last point at which passengers are able to disembark

This will apply to both section 19 and 22 permit users. The legislation allows for a case to be made by the operator to the permit issuer of the existence of extenuating circumstances that a longer distance than the automatic ten miles ‘short distance’ should apply in less densely populated areas, due to the nature of the areas in which they operate.

The legislation does not define threshold limits by reference to geographical areas. A longer distance than the automatic ten miles short distance will need to be considered on a case-by-case basis by the permit issuer on the basis of the evidence provided by the operator.

6/ Does the ‘minor impact on the market’ need to be considered if the 10-mile limit is met? Otherwise, how do you demonstrate that there would only be a “minor impact on the transport market”?

Answer. No. All services of a ‘not-for-profit’ organisation within the automatic short distance (see definition in Policy Overview above) are judged to have a minor impact on the transport market. However, the impact on the transport market needs to be considered when:

• there are extenuating circumstances due to the nature of the areas in which the organisation operates as the ‘short distance’ is longer than the automatic short distance as defined above

or

• the operator requests multiple operating centres (more than two or three) as those could create a total cumulative area which could be argued as not having a minor impact on the transport market anymore

In those cases, the impact on the transport market will be considered on a case-by-case basis from the evidence that the operator provides.

Only operators operating exclusively within the UK can satisfy this exemption. The relevant market is that for vehicles carrying more than 8 passengers in return for payment.

7/ Is it primarily up to the applicants to make a reasonable case for a longer distance than the automatic ten-mile short distance?

Answer. Yes. The operator needs to bring the relevant evidence to the permit issuer when applying under the ‘short distance’ exemption.

8/ What evidence will an operator be able to use to demonstrate a longer distance than the automatic ten-mile short distance?

Answer. The evidence should be a combination of the information set out below (not necessarily exhaustive):

• mapping of the operating area and its surroundings: spatial information of the operating area and its surroundings from a geographic information system, or web mapping service offering satellite imagery and route planning for traveling by public transportation, or an Ordnance Survey map, or similar type of mapping and cartography services
• search of the population density in the operating area: area classified as a rural area in England and Wales under the Government Rural Area Classification or in Scotland under the Scottish Government Urban Rural Classification, or a map of the population density of the area, or other data analysis of population density
• transport services in the area: evidence of a lack in transport provisions in the operating area, or a lack of an adequately located public transport hub, or a gap that the services fulfil by allowing connection to the nearest public transport hub with timetables, frequencies and routes planning of local bus services
• information on the specific group of passengers that the services supports: classes of persons defined in section 7.2 of the guidance, or other type of evidence which shows that the passengers that the services support are not able to or do not have the means to take public transportation; therefore their public transport needs are not met other than by virtue of services provided by the operator
• other relevant evidence

An operator should at a minimum provide the mapping of and population density in the operating area and cannot rely on only one piece of evidence. However, the evidence provided should be proportionate to the number of vehicles operated.

9/ Can the central point for the radius measurement move on a per service basis?

Answer. Multiple central points could be allowed, so long as the total cumulative area covered by the services from these central points still meet the requirement of this exemption – i.e., having a minor impact on the transport market. This could mean that more than two or three different central points in adjacent operating areas might create a total cumulative area which could be argued as not having a minor impact on the transport market anymore – the more central points, the less likely an organisation is to be able to meet the requirements for the exemption. The operator could bring a map to show that the operating areas from the multiple central points are not adjacent or overlap in parts.

An operator can apply for several permits to run vehicles at the same time with the same central point.

10/ Does the central point of the radius have to be located close to the organisation’s operating area?

Answer. Not necessarily. A central point must be a landmark or place which can be easily verified and is unlikely to change i.e. with an address or a six-digit grid reference. For example (but not limited to) a bus garage, operating centre, library, school, or bus stop.

A place without an address, for example the name of a business or shop - may be difficult to locate. A business or shop could close or relocate to new premises.

11/ A service takes people shopping and brings them home again, with assistance provided whilst they are shopping. Is this to be considered one service (there and back) or two services?

Answer. Because the passengers disembark at their destination (in this case to do their shopping), it is considered that the outward and return journey are two services. It is likely that both the outward and return journey will take the same exact route, except if there are one-way streets or road deviations on the route; so if the outward service meets the criteria of the ‘short distance’ exemption then the return would too.

3. Worked examples

These examples demonstrate some of the considerations involved in meeting the criteria for the ‘short distance’ exemption.

Example 1: Organisation A is a Scout group who uses minibuses under permits as part of their activities. Membership of the Scout Association demonstrates that scouting is the main occupation of the organisation, which evidently consumes substantially all of its time and resources. They operate two services which fall within a ten-mile radius from the Scout’s centre. As organisation A is able to demonstrate that they satisfy the ‘main occupation’ exemption criteria, all their permits are issued on this basis.

Example 2: Organisation B provides ‘Dial-a-Ride’ passenger transport services under a section 19 permit. They demonstrate that all their services fall within a radius of ten miles from the town city hall.

Example 3: Organisation C provides passenger transport services under a section 22 permit. They demonstrate that the three services that they operate measure a distance of ten miles in a straight line from the first bus stop at which passengers are able to embark to the last stop at which passengers can disembark.

Example 4: Organisation D provides passenger transport services under a section 19 permit to bring older local residents to their medical appointments. The nearest doctor is in a neighbouring town which is located at a longer distance than the automatic ten miles distance. The area is classified as a rural area under the Government Rural Area Classification. A map of the area confirms that there are only a few villages in the surrounding area with no easily accessible public transportation and a search of services provided in the villages shows that there is only one doctor located in the town.

Example 5: Organisation E operates under different section 19 permits dial-a-ride services and a home-to-school service for a local authority, which is located quite far from the dial-a-ride operating area in a different county. All their services (whether dial-a-ride or home-to-school) fall within a ten miles radius. The organisation specifies their operating centre as the central point upon renewing their permits for the dial-a-ride services and the school as the central point upon renewing the permit for the home-to-school service. They bring a map showing that both operating areas are not adjacent or do not overlap in parts.

Example 6: Organisation F provides passenger transport services under a section 22 permit. They demonstrate that the three services that they operate measure a distance of ten miles in a straight line from the first bus stop at which passengers are able to embark to the last stop at which passengers can disembark. The organisation also provides once a year a trip to the Christmas market in a neighbouring town and a trip to a summer festival in a village in another county. Both the town and village are located at a longer distance than the automatic ten miles distance. However, both services are once a year and hence meet the ‘on an occasional basis’ criteria.

The following example shows evidence of an organisation not meeting the criteria for the ‘short distance’ exemption:

Example 7: Organisation G provides weekly ‘Dial-a-Ride’ services to a shopping centre which fall within a radius of ten miles from the shopping centre and operate a weekly service to a seaside town. The evidence they provide demonstrates that their weekly service to the seaside town is a longer distance than the automatic ten-mile short distance and there are no grounds for the existence of extenuating circumstances due to the nature of the areas in which the service operates. There are a number of other transport services to the seaside town and the organisation cannot provide any evidence of a gap in transport provision.

The organisation is therefore unable to satisfy the exemption for the service to the seaside town due to a lack of evidence about extenuating circumstances and the service to the seaside town occurring too regularly and to the same location to be considered an ‘occasional’ service.