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Section 123Q Application for service permitC3C4F1C1C2

(1)

An application for a service permit authorising a person to provide a particular local service in an area to which a franchising scheme relates must be made in such manner as the authority or authorities operating the scheme may determine.

(2)

An application must be accompanied by such information as the authority or authorities operating the scheme may specify.

(3)

If the authority or authorities so require, an application for a service permit must be accompanied by a fee for processing the application of an amount that is determined in accordance with regulations made by the Secretary of State.

(4)

Regulations under subsection (3) may specify the maximum amount of the fee.

(5)

The authority or authorities must grant the service permit applied for if they are satisfied that—

(a)

the proposed service will benefit persons making journeys on local services F2which have one or more stopping places in the area to which the scheme relates, and

(b)

the proposed service will not have an adverse effect on any local service that is provided under a local service contract in the area to which the scheme relates.

(F35A)

If the application is for a service permit for a cross-boundary service, the authority or authorities may grant the permit applied for if they are satisfied that—

(a)

the benefits to persons making journeys on the proposed service will outweigh any adverse effect on any local service that is provided under a local service contract in the area to which the scheme relates, or

(b)

the benefits of the proposed service to the economy of the relevant area, or to persons living in that area, will outweigh any such adverse effect.

(5B)

If the application is for a service permit for a service that is not a cross-boundary service, the authority or authorities may grant the permit applied for if they are satisfied that the benefits of the proposed service to the economy of the area to which the scheme relates, or to persons living in that area, will outweigh any adverse effect on any local service that is provided under a local service contract in that area.

(6)

The authority or authorities may not grant the service permit applied for F4except under subsection (5), (5A) or (5B).

(7)

If the authority or authorities do not grant a service permit, they must give notice of their reasons to the applicant within a period of ten days beginning with the date on which they decide not to grant the service permit.

(F58)

In this section—

  • “cross-boundary service”, in relation to a franchising scheme, means a service that—

    1. (a)

      has one or more stopping places in the area to which the scheme relates, and

    2. (b)

      has one or more stopping places outside that area;

  • “relevant area”, in relation to a cross-boundary service, means the combined area of each—

    1. (a)

      local transport authority,

    2. (b)

      council in Scotland, and

    3. (c)

      Transport Partnership created under the Transport (Scotland) Act 2005,

    in which the service has a stopping place.

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. 123Q(5)(a) inserted (26.1.2026) by Bus Services Act 2025 (c. 24), ss. 5(4), 41(5); S.I. 2026/46, reg. 2(e)

F3

S. 123Q(5A)(5B) inserted (26.1.2026) by Bus Services Act 2025 (c. 24), ss. 6(2), 41(5) (with s. 6(6)); S.I. 2026/46, reg. 2(f)

F4

Words in s. 123Q(6) substituted (26.1.2026) by Bus Services Act 2025 (c. 24), ss. 6(3), 41(5) (with s. 6(6)); S.I. 2026/46, reg. 2(f)

F5

S. 123Q(8) inserted (26.1.2026) by Bus Services Act 2025 (c. 24), ss. 6(4), 41(5) (with s. 6(6)); S.I. 2026/46, reg. 2(f)

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