Section 124 Quality contracts schemes.I1C1C2
England and Wales
A local transport authority F1for an area in Wales, or two or more such authorities acting jointly, may make a quality contracts scheme covering the whole or any part of their area, or combined area, if they are satisfied that—
the proposed scheme will result in an increase in the use of bus services (see subsection (9B)) in the area to which the proposed scheme relates,
the proposed scheme will bring benefits to persons using local services in the area to which the proposed scheme relates, by improving the quality of those services,
the proposed scheme will contribute to the implementation of the local transport policies of the authority or authorities,
the proposed scheme will contribute to the implementation of those policies in a way which is economic, efficient and effective, and
any adverse effects of the proposed scheme on operators will be proportionate to the improvement in the well-being of persons living or working in the area to which the proposed scheme relates and, in particular, to the achievement of the objectives mentioned in paragraphs (a) to (d).
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A quality contracts scheme may not be made unless the authority or authorities—
have complied with the requirements of section 125, F5and
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A quality contracts scheme is a scheme under which—
the authority or authorities determine what local services should be provided in the area to which the scheme relates and any additional facilities or services which should be provided in that area, and
local services may only be provided in that area in accordance with quality contracts (subject to section 127(4) F9and section 132C).
In this Part “quality contract”, in relation to a quality contracts scheme, means an agreement entered into under section 130 or 131 under which—
the authority or authorities grant to another person the exclusive right to operate the local services to which the contract relates, and
that person undertakes to provide the services on such terms (including in particular as to frequency, fares and standard of service) as may be specified in the agreement.
A quality 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, and
requiring one or more of the parties to provide additional facilities or services.
Section 88(1) of the M1Transport Act 1985 (application to subsidy agreements of sections 89 to 92 of that Act) does not apply in relation to quality contracts.
The authority or authorities must keep under review the extent to which quality contracts entered into by them are complied with.
In carrying out their functions under this Part in relation to quality contracts schemes, local transport authorities must co-operate with one another.
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The reference in subsection (1)(a) to increasing the use of bus services includes a reference to reducing, arresting or reversing decline in the use of bus services.
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Annotations
Textual amendments
- F1
Words in s. 124(1) 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), s. 26(3), Sch. 2 para. 7(2)
- F2
S. 124(1)(a)-(e) substituted for s. 124(1)(a)(b) (11.1.2010 for E.) by Local Transport Act 2008 (c. 26), ss. 19(2), 134(4); S.I. 2009/3242, art. 2(1)(a)
- F3
S. 124(1A)(1B) omitted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by virtue of Bus Services Act 2017 (c. 21), s. 26(3), Sch. 2 para. 7(3)
- F4
S. 124(2)(2A) substituted for s. 124(2) (11.1.2010 for E.) by Local Transport Act 2008 (c. 26), ss. 19(3), 134(4); S.I. 2009/3242, art. 2(1)(a)
- F5
Word in s. 124(2)(a) 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), s. 26(3), Sch. 2 para. 7(4)(a)
- F6
Words in s. 124(2)(b) omitted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by virtue of Bus Services Act 2017 (c. 21), s. 26(3), Sch. 2 para. 7(4)(b)
- F7
S. 124(2)(c) and word omitted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by virtue of Bus Services Act 2017 (c. 21), s. 26(3), Sch. 2 para. 7(4)(c)
- F8
S. 124(2A) omitted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by virtue of Bus Services Act 2017 (c. 21), s. 26(3), Sch. 2 para. 7(5)
- F9
Words in s. 124(3)(b) inserted (11.1.2010 for E.) by Local Transport Act 2008 (c. 26), ss. 19(4), 134(4); S.I. 2009/3242, art. 2(1)(a)
- F10
Words in s. 124(9) 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), s. 26(3), Sch. 2 para. 7(6)(a)
- F11
Word in s. 124(9) 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), s. 26(3), Sch. 2 para. 7(6)(b)
- F12
S. 124(9A) omitted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by virtue of Bus Services Act 2017 (c. 21), s. 26(3), Sch. 2 para. 7(7)
- F13
S. 124(9B) inserted (11.1.2010 for E.) by Local Transport Act 2008 (c. 26), ss. 19(6), 134(4); S.I. 2009/3242, art. 2(1)(a)
- F14
S. 124(10) repealed (9.2.2009 for E., 1.4.2009 for W.) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 1 para. 2(3), Sch. 7 Pt. 1; S.I. 2009/107, art. 2(2), Sch. 2 Pt. 1; S.I. 2009/579, art. 2(a)
- F15
S. 124(11)-(13) omitted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by virtue of Bus Services Act 2017 (c. 21), s. 26(3), Sch. 2 para. 7(8)
Marginal citations
- M1
Modifications
- C1
S. 124 applied (with modifications) (1.2.2005) by The Local Authorities' Plans and Strategies (Disapplication) (England) Order 2005 (S.I. 2005/157), art. 1, Sch. 2 para. 6 (with art. 7(4))
- 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
Commencement
- I1
S. 124 partly in force; s. 124 not in force at Royal Assent see s. 275(1)(2); s. 124 in force for specified purposes (W.) at 1.8.2001 by S.I. 2001/2788, art. 2, Sch. 1 para. 3; s. 124 in force (E.) at 26.10.2001 by S.I. 2001/3342, art. 2, Sch.
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)
- C9
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)
- C10
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)
- 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
Notes on Bus services: quality contracts schemes in Wales
Textual amendments
- F1
Words in s. 124 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), s. 26(3), Sch. 2 para. 6