Section 123A Franchising schemesC3C4F1C1C2
A franchising authority, or two or more franchising authorities acting jointly, may make a franchising scheme covering the whole or any part of their area, or their combined area.
A franchising scheme may not be made unless the franchising authority or authorities have complied with the requirements in sections 123B to 123G.
A franchising scheme is a scheme—
under which the authority or authorities identify the local services that they consider appropriate to be provided in an area under local service contracts,
by virtue of which those local services may only be provided in that area in accordance with local service contracts (subject to section 123O),
by virtue of which the authority or authorities may grant service permits for other local services which have a stopping place in that area (subject to section 123H(5)), and
under which the authority or authorities identify additional facilities that they consider appropriate to provide in that area.
In this Part “franchising authority” means a local transport authority whose area is in England.
In this Part “local service contract”, in relation to a franchising scheme, means an agreement that complies with section 123K(1) to (3) under which—
the franchising authority or authorities grant to another person the exclusive right to operate the local services to which the contract relates, and
the person undertakes to provide the local services on such terms (including in particular as to frequency, fares and standard of service) as may be specified in the agreement.
The terms as to standard of service that may be specified include terms about requirements which vehicles being used to provide the service must meet, including requirements about emissions or types of fuel or power.
A local service contract may be made on terms which include provision for the making of payments by the authority or authorities to the person undertaking to provide the local service.
Section 88(1) of the Transport Act 1985 (application to subsidy agreements of sections 89 to 92 of that Act) does not apply in relation to local service contracts.
A franchising scheme must include a description of the franchising authority's or authorities' plans for consulting such organisations appearing to the authority or authorities to be representative of users of local services as they think fit in order to seek their views on how well the scheme is working.
A franchising authority's functions under this Part in relation to a franchising scheme are excluded from the functions to which section 101(1)(b) of the Local Government Act 1972 applies, where the franchising authority is a local authority within the meaning of section 101 of the Local Government Act 1972.
Annotations
Textual amendments
- F1
Ss. 123A-123X and cross-heading inserted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by Bus Services Act 2017 (c. 21), ss. 4, 26(3)
- F2
S. 123A(4) substituted (26.1.2026) by Bus Services Act 2025 (c. 24), ss. 1(2), 41(5); S.I. 2026/46, reg. 2(a)
Modifications
- C1
Ss. 123A-123X: functions transferred (28.2.2024) by The East Midlands Combined County Authority Regulations 2024 (S.I. 2024/232), regs. 1(2), 15(2)
- C2
Ss. 112-159: transfer of functions (5.2.2025) by The Hull and East Yorkshire Combined Authority Order 2025 (S.I. 2025/113), arts. 1(2), 7
- C3
Pt. 2: transfer of functions (2.11.2018) by The Newcastle Upon Tyne, North Tyneside and Northumberland Combined Authority (Establishment and Functions) Order 2018 (S.I. 2018/1133), arts. 1, 7 (with art. 28)
- C4
Pt. 2: functions made exercisable (2.11.2018) by The Newcastle Upon Tyne, North Tyneside and Northumberland Combined Authority (Establishment and Functions) Order 2018 (S.I. 2018/1133), arts. 1, 9 (with art. 28)
Notes on Part II
Modifications
- C1
Pt. 2: power to amend conferred (17.10.2007 for specified purposes, 1.4.2008 in so far as not already in force) by Concessionary Bus Travel Act 2007 (c. 13), ss. 8(1), 9(1)(2), 10(1)(2), 15(1); S.I. 2007/2799, arts. 2, 3 (with art. 4)
- C2
Pt. 2: transfer of functions (1.4.2014) by The Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral Combined Authority Order 2014 (S.I. 2014/865), arts. 1, 8(1)(b) (with arts. 8(4), 12)
- C3
Pt. 2: transfer of functions (15.4.2014) by The Durham, Gateshead, Newcastle Upon Tyne, North Tyneside, Northumberland, South Tyneside and Sunderland Combined Authority Order 2014 (S.I. 2014/1012), arts. 1, 8, 9 (with art. 11)
- C4
Pt. 2: delegation of functions (1.4.2016) by The Tees Valley Combined Authority Order 2016 (S.I. 2016/449), arts. 1(a), 6(b)
- C5
Pt. 2: functions made exercisable (9.2.2017) by The West of England Combined Authority Order 2017 (S.I. 2017/126), arts. 1(3), 8
- C6
Pt. 2: functions made exercisable (9.2.2017) by The West of England Combined Authority Order 2017 (S.I. 2017/126), arts. 1(3), 8(1)
- C7
Pt. 2: functions made exercisable (3.3.2017) by The Cambridgeshire and Peterborough Combined Authority Order 2017 (S.I. 2017/251), arts. 1(2)(b), 8(b)
- C8
Pt. 2: functions made exercisable (8.5.2017) by The Tees Valley Combined Authority (Functions and Amendment) Order 2017 (S.I. 2017/431), arts. 1(2), 4(1)(2)
- C11
Pt. 2 applied (with modifications) (W.) (28.2.2022) by The South East Wales Corporate Joint Committee Regulations 2021 (S.I. 2021/343), regs. 1(3)(b), 12(2)
- C12
Pt. 2 applied (with modifications) (30.6.2022) by The North Wales Corporate Joint Committee Regulations 2021 (S.I. 2021/339), regs. 1(3)(b), 12(2)
- C13
Pt. 2 applied (with modifications) (30.6.2022) by The Mid Wales Corporate Joint Committee Regulations 2021 (S.I. 2021/342), regs. 1(3)(b), 12(2)
- C14
Pt. 2 applied (with modifications) (W.) (30.6.2022) by The South West Wales Corporate Joint Committee Regulations 2021 (S.I. 2021/352), regs. 1(3)(b), 12(2)
- C15
Pt. 2: functions made exercisable (20.12.2023) by The York and North Yorkshire Combined Authority Order 2023 (S.I. 2023/1432), arts. 1(2), 13(1)(2)
- C16
Pt. 2: functions made exercisable (28.2.2024) by The East Midlands Combined County Authority Regulations 2024 (S.I. 2024/232), regs. 1(2), 15(1)
- C17
Pt. 2: functions made exercisable concurrently (E.) (7.5.2024) by The North East Mayoral Combined Authority (Establishment and Functions) Order 2024 (S.I. 2024/402), arts. 1(3), 19(c) (with art. 9)
- C18
Pt. 2: transfer of functions (with modifications) (5.2.2025) by The Devon and Torbay Combined County Authority Regulations 2025 (S.I. 2025/115), regs. 1(2), 10
- C19
Pt. 2: functions made exercisable (with modifications) (5.2.2025) by The Greater Lincolnshire Combined County Authority Regulations 2025 (S.I. 2025/117), regs. 1(2), 14
- C20
Pt. 2: functions made exercisable (5.2.2025) by The Hull and East Yorkshire Combined Authority Order 2025 (S.I. 2025/113), arts. 1(2), 7
- C21
Pt. 2: functions made exercisable (with modifications) (5.2.2025) by The Lancashire Combined County Authority Regulations 2025 (S.I. 2025/118), regs. 1(2), 10