The draft guidance for franchising under the Buses Bill, expected to be delivered soon, opens franchising to all local authorities but strongly endorses Enhanced Partnerships as an alternative, and includes options to operate within the franchised area.

Currently, the franchising option is only available to Mayoral Combined Authorities*. Under the government’s new proposals, franchising will be possible for all local transport authorities (LTAs) to apply to the Secretary of State with proposals for franchising, which will be independently audited.

Contrary to the concerns of operators before the guidance was published, the government is encouraging LTAs to carefully consider EPs as a lower-cost but effective alternative, and has opened the way for fully commercial services to be launched in a franchise area via Service Permits issued by the LTA. This may offer reassurance to small independents concerned that they could be shut out of a franchised area by the size of tendered contracts.

The guidance urges LTAs to consider micro-franchising and even to combined micro-franchising – of perhaps an urban corridor or high-traffic area – with EPs for connected but not overlapping areas. The guidance says the government remains committed to the Bus Service Improvement Plans (BSIPs) launched by the previous government but says that Local Transport Plans offer a longer-term strategy which dovetails better with franchising.

‘There can be no return to a situation where services are planned on a purely commercial basis with little or no engagement with, or support from, LTAs’ says the guidance. On the other hand, the guidance makes it clear that franchising will not be allowed if the LTA hasn’t considered measures to create modal shift, such as workplace parking levies, and bus priority measures to make services reliable.

The guidance isn’t proscriptive about the aims of franchising; how success is measured. However, it specifically says that any LTA applying for franchising must have made a comparison with EPs that have been tabled by operators as an alternative, and be able to set out why EPs are inadequate. It sets out how EPs can be developed in collaboration with operators. The guidance also urges LTAs to consider the ‘Jersey’ model, with a profit-sharing agreement between LTA and operator,

It is also insistent that drivers and other frontline staff get mandatory training to combat assaults on women and girls, and anti-social behaviour. It places emphasis on improving bus stops, bus stations and other infrastructure, including suitable toilets on bus routes for driving staff.

The guidance urges LTAs to use the Analyse Bus Open Data Services (ABODS) to help create their case for EPs or franchising and engage with operators when interpreting the data, or if other data is required.

Service exemptions

The guidance specifically exempts non-profit services operated under Section 22 Community Bus Permits, and any service of which 10% or less of the route distance is within the franchised area.

Importantly, the guidance sets out that all franchised services will be registered with the LTA, NOT with the Traffic Commissioner and, although the TC will remain the arbiter for enforcement, the LTA will be responsible for setting the standards and monitoring them. Likewise, the LTA will be responsible for issuing Service Permits for bus services operating within a franchised area.

Service Permits, says the guidance, are for bus services run on a commercial or non-profit purpose which do not compete with or infringe any franchised service. Specifically, the guidance mentions community buses, DRT and tourism bus services. It says that LTAs will need to set parameters for a variety of Service Permits with oversight or standards relevant to the application.

However, Service Permits can be issued (for a fee) for services which:

• Complement franchised services
• Encourage commercial operators to provide them
• Can be viably operated and therefore contribute to delivering desired outcomes.

The guidance makes the point strongly that connecting services have a vital role to play, and urges a franchising LTA to liaise closely with neighbouring LTAs when issuing Service Permits.

BSOG

Responsibility for administering BSOG to contracted operators will also fall to an LTA with bus franchising, though the guidance says this must be at the rates and levels already set.

 

• To see the full text of the guidance, read Proposed changes to bus franchising guidance – GOV.UK (www.gov.uk)