What does the Bus Services Act 2017 require and how do you get there faster?
The statutory route to bus franchising is clear, but an Authority must still make network, financial and contractual decisions before using it.
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The Department for Transport's current guidance describes five stages for an Authority considering a bus franchising scheme in England: committing to prepare a proposal; developing and assessing it; consultation; the decision to proceed; and implementation. The underlying powers sit in the Transport Act 2000, as amended by the Bus Services Act 2017 and the Bus Services Act 2025.
A public transport scheme is a substantial commitment. It involves more than tendering a few supported routes differently. The Authority needs to explain the proposed network, the service standards it will specify, how the scheme will be funded and managed, and why it is preferable to the alternatives considered.
The statutory work is concentrated in the assessment
The law requires an Authority to prepare a franchising scheme assessment. It must describe the likely effects of the proposed scheme and compare it with one or more other courses of action. It must also consider how the scheme would support the Authority's policies, how it would be made and operated, affordability, value for money and whether the Authority is likely to secure services through local service contracts.
A network review and patronage baseline are not statutory documents in their own right. They often provide the evidence needed to test the case: existing demand, the scope for change, the location of revenue risk and the cost of a proposed timetable. Depot issues also require evidence. An Authority does not need to own a depot to franchise, but its proposed operating model needs a credible account of access, capacity, charging where relevant, and the costs or risks allocated to each party. We recommend that the Authority own the depot.
The assessment is subject to an independent assurance report. The report considers the quality of information and analysis used for the financial and economic cases, and whether the Authority had due regard to the statutory guidance. It does not substitute for the Authority's judgement, but it can expose weak assumptions before consultation.
Consultation and procurement need different kinds of preparation
Before consultation, the Authority must publish the proposal, assessment and assurance report and consult prescribed interests. These include affected Operators, employee representatives, user organisations, disabled people or organisations representing them, relevant neighbouring Authorities, the Traffic Commissioner, police, Transport Focus and the Competition and Markets Authority. The 2025 Act added the express requirement to consult disabled people or representative organisations. Cross-boundary routes and any overlapping Enhanced Partnership require early attention because changes can affect services and facilities beyond the proposed franchised area.
The procurement pack need not be complete for consultation. Yet by then, the core proposition must be clear enough to test. By the time an Invitation to Tender reaches the market, bidders need sufficient certainty to price the requirement. Route scope, performance measures, fare and revenue arrangements, fleet and depot assumptions, data obligations and the allocation of mobilisation risk should be clear. Where a decision must remain open, the contract should state who will decide it, by when, and what happens to cost or performance if the assumption changes.
The Authority must publish its response to consultation and its decision on whether to make the scheme. If it proceeds, it must also explain how its procurement process will facilitate the involvement of small and medium-sized Operators. This should inform contract packaging and the market engagement plan well before a notice is issued.
Start with tested material, then do the local work
Authorities can lose time when they commission documents in isolation and later find that the payment mechanism conflicts with the performance regime or the proposed operating model. Reusable material can identify these dependencies early, but local evidence, legal review and a route for decision-making through the Authority are still required.
LiteFranchise™ includes a 14-schedule agreement suite and procurement material intended to give Authorities a significant start on contract and tender documentation. The material should be tested against the Authority's network, funding position, existing partnerships and delivery capacity. We have examined and assessed the moving parts to provide a practical starting point for an Authority.
Useful questions
Before committing more resources, an Authority should seek clear, evidenced answers:
- What comparison option will support a credible assessment, and what evidence supports the assumptions on demand, cost and revenue?
- Which network, depot, fleet, data or fare decisions must be fixed before market engagement, and who owns each remaining decision?
- Can the financial and economic cases withstand independent assurance without a late rebuild of the underlying data or analysis?
- Have affected Operators, disabled passengers, neighbouring Authorities and other statutory consultees been identified early enough to shape a workable proposal?
- Does the intended contract packaging give capable small and medium-sized Operators a realistic route into the procurement?
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