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Section 123O Interim services and replacement servicesC3C4F1C1C2

(1)

This section applies if—

(a)

a franchising authority or authorities have entered into a local service contract with another person (“the operator”) about providing a local service (“the original service”) for a period, and

(b)

the operator fails to provide the original service or ceases to provide the original service before the end of the period.

(2)

The authority, or any one of the authorities, may provide a local service (an “interim service”) in the place of the original service or a part of it.

(3)

Subsection (2) has effect notwithstanding any prohibition, restriction or limitation on the power of the authority to provide local services contained in any other enactment F2....

(4)

A franchising authority providing an interim service must have a PSV operator's licence to which no condition is attached under section 26 of the Transport Act 1985 (power of traffic commissioner to attach conditions to licence) prohibiting the authority from using vehicles under the licence to provide services of that description.

(5)

A franchising authority may not provide an interim service after the end of the period of six months beginning with the day on which the authority begins to provide the service, subject to subsection (7).

(6)

If—

(a)

an interim service is provided, and

(b)

the authority or authorities decide to enter into a local service contract with another person for the provision of a local service (a “replacement service”) that would replace the original service or a part of it,

section 123K(4) does not apply in relation to the provision of the replacement service.

(7)

If the authority or authorities enter into a local service contract for the provision of a replacement service, the authority or the authority providing the interim service may continue to provide it until the replacement service begins to be provided.

(8)

An interim service or replacement service need not be identical to the original service, or the part of the original service, that is replaced by the interim service or the replacement service (and such a change is not to be regarded as a variation of the scheme for the purposes of section 123M).

(9)

In this section “enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978).

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

Words in s. 123O(3) omitted (26.1.2026) by virtue of Bus Services Act 2025 (c. 24), ss. 22(7), 41(5); S.I. 2026/46, reg. 2(l)

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