Simon Lightwood MP: speeches

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Speeches

1 Jul 2025 · Bus Services (No. 2) Bill [ Lords ] (Fourth sitting) · Hansard source
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Clause 19 will introduce a change to the 28-day operator objection mechanism in relation to EP plans and schemes. Under the Transport Act, local transport authorities are required to provide notice and comply with consultation requirements when they create, vary or revoke an EP plan or scheme. Those arrangements allow an operator of a qualifying local service to object to any proposal to create, vary or revoke an EP scheme at several key stages in the process. The creation, variation or revocation of an EP scheme cannot proceed if a sufficient number of operators object. Where a sufficient number of operators object, the local transport authority has an opportunity to revise its proposals for reconsideration, and then operators have another opportunity to object. The mechanism for operators to object is critical to enabling bus operators to have a reasonable say about the content and viability of an individual EP plan or scheme. However, in some cases, local transport authorities have been working with operators in advance of issuing notices, so they have an opportunity to work through any potential objections. The current legislation means that local transport authorities are required to wait up to a month for the objection period to lapse in such circumstances.
1 Jul 2025 · Bus Services (No. 2) Bill [ Lords ] (Fourth sitting) · Hansard source
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The driving force here is transparency. It is about having the data and about how local areas ensure, for a whole range of reasons—social, economic and moral—that everyone in their community can access our bus services. I remind Members that the clause 21 was inserted following debate in the other place. The Government believe that all passengers should be able to travel across the country easily, safely and with dignity. We listened carefully to concerns in the other place and brought forward an amendment to support the Government’s ambition for bus services to become more accessible and inclusive for passengers, and particularly for disabled people. I will address some of the points raised. First, I have already mentioned that clause 21 places consultation requirements on local transport authorities when developing bus network accessibility plans. It also specifies that these plans must be published within one year of the clause coming into force and reviewed following substantial changes to local bus services, or every three years. For example, if a local transport authority decides to adopt a franchising scheme, my Department would expect it to review the plan. The clause requires a local authority to describe what action it intends to take to enable persons with disabilities to travel on such services independently and in safety and reasonable comfort—not just to identify the issues. Bus network accessibility plans will enable local authorities to be held to account for appropriately understanding the accessibility of networks and for having a plan to resolve and mitigate those issues. New clause 23, tabled by the hon. Member for Wimbledon, would place requirements on a wider range of authorities, including those not responsible for bus services. It would be burdensome and duplicative, and likely to result in areas being captured in multiple reports. I confirm that my Department will provide guidance to help local transport authorities to produce proportionate and effective bus network accessibility plans for the benefit of the authority and disabled passengers alike. Question put and agreed to. Clause 21 accordingly ordered to stand part of the Bill . Clause 22 Local government bus companies
1 Jul 2025 · Bus Services (No. 2) Bill [ Lords ] (Fifth sitting) · Hansard source
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After the Liberal Democrat contribution, I was missing my headphones— [ Interruption. ] I say that with love. I thank Committee members for their further comments on the powers to make byelaws contained in the Bill. The Government are focused on tackling antisocial behaviour. Improving the safety of our bus network is one of the Government’s aims in reforming buses, because that is critical to giving passengers, particularly women and girls, the confidence they need to take the bus. Different powers are currently available for different transport modes, and the powers that certain local transport authorities hold for light or heavy rail are not in place for buses. That has created a situation where local transport authorities rely on a patchwork of powers to enforce against poor behaviour, and some authorities are unable to act at all against those committing antisocial behaviour. The Bill remedies that situation by providing powers to create and enforce bus byelaws. On the question of what constitutes antisocial behaviour, the Bill lists specific behaviours that byelaws can cover, such as vaping, smoking and interfering with or obstructing services and vehicles. My Department plans to issue non-statutory guidance about the content of byelaws that will take the existing railway byelaws as a starting point, which should help to ensure consistency across different transport modes.
1 Jul 2025 · Bus Services (No. 2) Bill [ Lords ] (Fifth sitting) · Hansard source
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The hon. Lady will have seen in the Bill that there is an element of ensuring that bus drivers and other persons in bus companies are given training on antisocial behaviour, particularly violence against women and girls, so that when it is safe to act, they can intervene in the interests of public and driver safety. I talked earlier about the potential for transport safety officers in local transport authority areas, not just among bus providers. Ultimately, the design of that and how it is enforced, depending on the byelaws, will of course be a matter for the local transport authorities themselves, but this is about giving them the powers and allowing them to put those byelaws in place. Obviously, they need to be enforced. Sometimes it is also a matter of communicating this stuff. We have all been on other modes of transport where it is not adhered to. As I said, my Department plans to issue non-statutory guidance on the content of the byelaws. That guidance will take the form of existing railway byelaws and is expected to emphasise the “educate, engage and enforce” approach. As I said in my opening remarks, I agree with the hon. Member for Wimbledon—despite my jest—on the need to take action against antisocial behaviour, but powers already exist to take action against playing music or videos loudly on buses. The training that I talked about a moment ago will only help to raise awareness of that, both with passengers and with drivers. In relation to enforcement at bus stops and stands, there are areas where divergence is expected in enforcement practices. That is likely to include stops and stands, which by their nature are harder to define than parts of the railway estate. Question put and agreed to . Clause 27 accordingly ordered to stand part of the Bill. Clause 28 Local transport authority byelaws Amendment proposed : 67, in clause 28, page 24, line 37, after “nuisance” insert “, including sustained anti-social auditory disturbance.”— (Mr Kohler.) This amendment would allow local transport authorities to prohibit disruptive anti-social forms of noise such as from telephones through byelaws. Question put, That the amendment be made.
1 Jul 2025 · Bus Services (No. 2) Bill [ Lords ] (Fifth sitting) · Hansard source
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As I was saying this morning, clause 28 enables local transport authorities to introduce byelaws to tackle antisocial behaviour on vehicles, as well as within and at bus-related infrastructure, such as bus stations. The clause was developed to address the current situation, in which there are no specific powers available to local transport authorities to make byelaws to deal with antisocial behaviour on their bus networks. Certain local transport authorities could use the general powers contained in section 235 of the Local Government Act 1972 for this purpose, but those powers are not available to all local transport authorities, most notably metropolitan combined authorities. The clause is intended to provide flexibility to local transport authorities to effectively enforce against antisocial behaviour on the transport network and to ensure greater consistency across the country and across public transport modes. Through these byelaws, local transport authorities can provide authorised persons with the power to enforce against antisocial behaviour, including the ability to issue fixed penalty notices where they have reason to believe that an offence has been committed. Clause 29 ensures that the new byelaw powers being granted to local transport authorities are also available to Transport for London. TfL has requested to be included in this provision. Although TfL officers can deal with antisocial behaviour at bus stops and bus stations under existing byelaws, they cannot easily enforce against nuisance behaviour on the buses themselves. Closing this loophole gives TfL the same powers as other local transport authorities in England and will help to make buses in London safer for passengers and for staff.
1 Jul 2025 · Waterloo-Reading Line: Class 701 Trains · Hansard source
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It is of course a pleasure to see you in the Chair, Ms Butler. I congratulate the hon. Member for Wokingham (Clive Jones) on raising this issue. The Department is keen to provide the significant improvements to the passenger experience and capacity that travellers on the South Western Railway network deserve, and we are working with SWR to ensure the continued roll-out of the 701 Arterio trains as soon as possible. The Government are determined to turn this situation around, but we inherited, frankly, an abject mess from the previous train operating company, which, over six years, failed to get the new fleet of trains into service. SWR entered into the class 701 rolling stock lease contracts with Alstom in 2017, and the new class 701 fleet was due to be delivered between 2019 and 2021. The delays were initially caused by manufacturing and software issues, and later by the operator seeking to agree a safe plan for driver training and platform infrastructure readiness. Prior to transfer to public ownership, the Secretary of State invited FirstGroup and MTR, the then owning groups of SWR, to an urgent meeting to discuss the issues affecting the 701’s introduction, their plans to resolve the issues, the robustness of the roll-out plan and the factors that led to such a material delay in the introduction of the fleet. At the time, officials requested an urgent plan for SWR to resolve the issues, and held SWR to account for those plans to introduce further units as soon as possible. SWR successfully transferred into public ownership on 25 May under the leadership of the new managing director, Lawrence Bowman. This was a watershed moment in our work to return the railways to the service of passengers. Mr Bowman has written to the hon. Member for Wokingham offering a meeting, and would welcome the opportunity to expand on his emerging plans and to hear the hon. Member’s concerns.
1 Jul 2025 · Waterloo-Reading Line: Class 701 Trains · Hansard source
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I am sure that the Rail Minister will have heard that comment. The new managing director of the publicly owned SWR has been tasked with producing a plan to introduce the 701 fleet as quickly as possible. The delays to its introduction have happened under what I would say is a flawed franchising system, not under public ownership. While there have been significant delays as a result of manufacturing and software issues, those long-standing issues are not related to public ownership. Out of a total of 90 units, 11 are now running daily in passenger service, and the 12th service will be introduced in the week commencing 7 July. A total of 181 drivers have also been trained. Positively, since day one of public ownership, four further 701s have been brought into passenger service. That compares to only one additional unit being introduced in the six months prior to the transfer. Passengers on the Waterloo to Reading line should hope to see class 701s gradually entering service shortly. The 701 fleet will significantly improve performance by reducing cancellations and short formations. Other benefits of the new fleet include a 50% increased capacity compared with the 455 fleet; accessible toilets—the hon. Member for Yeovil (Adam Dance) quite rightly referenced accessibility—air conditioning, something that we can all appreciate today; charging points at every seat; real-time information screens; onboard wi-fi and walk-through carriages. Customer feedback on the 701s has been positive, with people welcoming improved on-train information screens—a 21% improved score—and a 22% improved score on cleanliness compared with the current 455 fleet in use. The Government are pushing ahead with an ambitious programme of transfers into public ownership. Three operators’ services will have transferred by the end of 2025, at which point seven of the 14 operators for which the DFT is responsible will be publicly owned, and we expect all currently franchised services to have transferred by the end of 2027. This Government’s bold vision for railways will see a unified and simplified rail system that relentlessly focuses on improved services for passengers and freight customers, and better value for money for taxpayers, ending years of fragmentation and waste. The Government will put passengers back at the heart of our railways and introduce new measures to protect their interests. That includes paving the way for a powerful new passenger watchdog, which will give passengers an independent voice and hold train operators to account. The railways Bill will enable the biggest overhaul of the rail sector in a generation. It will streamline the current fragmented system by establishing Great British Railways—GBR—as a new directing mind for the industry, unifying track and train under a single public body to deliver better services for passengers and customers and, crucially, better value for money for taxpayers. The Bill will also ensure that the benefits of a streamlined, integrated network are felt right across communities at a local level by establishing a new statutory role in governing, managing, planning and developing the rail network for devolved Governments and mayors. That means that local communities will be at the heart of decision making, ensuring that the railways work to meet their needs, connecting them to jobs and opportunities across the country. I thank the hon. Member for Wokingham once again for securing this debate, and the hon. Member for Yeovil for attending in support. Question put and agreed to.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Second sitting) · Hansard source
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It is a pleasure to see you in the Chair, Dr Allin-Khan. At the conclusion of our sitting on Tuesday, I had begun to address the points made by the shadow Minister, the hon. Member for Broadland and Fakenham, on the role of small and medium-sized enterprises in franchising. I will briefly address the outstanding points. The Department for Transport understands that there are barriers to SMEs accessing franchise networks. That is why we are listening to the sector about how to ensure that disproportionate paperwork requirements do not hinder SME bids for franchising contracts, and that SMEs are provided with the resources to simplify bidding. My Department has also engaged directly with SME representatives through policy development and the passage of the Bill, including on additions to guidance, such as the Department’s role in facilitating pre-tender engagement between SMEs and franchising authorities. Already, as part of the consultation on a franchising scheme, an authority must make a statement about how it proposes to facilitate the involvement of SME operators when it conducts the procurement process for franchised services. Moreover, the grant-making powers given to local authorities via the Bill will allow grants to be designed to prioritise SME bus operators, subject to other competition and subsidy controls. I hope that that offers reassurance to the Committee. Question put and agreed to . Clause 3 accordingly ordered to stand part of the Bill . Clause 4 ordered to stand part of the Bill . Clause 5 Minimum period before provision of services Question proposed, That the clause stand part of the Bill.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Second sitting) · Hansard source
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The hon. Member for Broadland and Fakenham spoke about the removal of minimum mobilisation periods. It is consistent with the aims of the Bill to empower local transport authorities to decide how best to design their bus services, and this will be an issue for franchising authorities to determine. A minimum mobilisation period does not need to be mandated by central Government. This is something that franchising authorities will need to consider, and it is in their interests to make sure that there is a smooth transition to a franchising scheme, if that is the pathway they wish to consider. Franchising authorities will make their determinations about the duration of mobilisation periods based on numerous factors. The clause provides flexibility for mobilisation to occur in a period shorter than six months, where it is in the interests of stakeholders and passengers. As I have explained, the Government intend to update the franchising guidance following Royal Assent. Question put and agreed to. Clause 5 accordingly ordered to stand part of the Bill. Clause 6 ordered to stand part of the Bill. Clause 7 Criteria for granting service permits
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Second sitting) · Hansard source
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The clause is about mobilisation periods for franchising areas. Existing law states that there must be a period of at least six months between the franchising contracts being made and those services first being delivered on the ground. The clause will enable franchising authorities to set shorter mobilisation periods that work for them and their stakeholders, if they wish. That will speed up the franchising process and ensure that bus passengers do not have to wait for an arbitrary period before experiencing the benefits. Clause 6 amends references to local services by inserting the words “which have one or more stopping places” in certain sections of the Transport Act 2000. That is intended to clarify that the relevant reference to local services includes cross-border services where appropriate. These technical changes support the Bill’s focus on giving franchising authorities more scope to facilitate the provision of cross-border services.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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I have nothing to add.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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I will start with amendment 57, tabled by the hon. Members for Wimbledon and for North Norfolk, which would require the Secretary of State to assess the adequacy of central Government funding to support the provision of bus services under franchised schemes. Under the Transport Act 2000, franchising authorities are already required to undertake a rigorous assessment to determine whether bus franchising is feasible, affordable, and deliverable in their area. The franchising assessment and the independent assurance report must then be published alongside the franchising consultation, ensuring transparency regarding the local transport authority’s decision. That comprehensive planning and assurance process significantly reduces the likelihood of needing central Government oversight and intervention, making the amendment unnecessary. The hon. Member for Wimbledon asked for an update on my Department’s engagement with relevant stakeholders to identify approved persons. Bodies in the accountancy sector could include the Chartered Institute of Public Finance and Accountancy, the Association of Chartered Certified Accountants and the Chartered Institute of Management Accountants. To identify who else may qualify as an approved person, the Department intends to hold discussions with other stakeholders, including the Chartered Institute of Logistics and Transport, the Chartered Institution of Highways and Transportation and industry bodies such as the Confederation of Passenger Transport. My Department will also look at whether those with senior and extensive experience in either the bus sector or local government could provide assurance. Guidance will be provided to franchising authorities, setting out considerations to be taken into account when selecting an independent approved person. The reason why the clause is subject to future regulations is that qualifications will change over time, so it is right to have the flexibility to respond to those changes. The core principle underpinning the Bill is that decisions should be made at the most appropriate level, specifically by devolving to local transport authorities the power to manage bus services within their area. The amendment would undermine the intention of the Bill. For those reasons, I hope that the hon. Member for Wimbledon will withdraw it. Amendment 59, also tabled by the hon. Members for Wimbledon and for North Norfolk, is a probing amendment on whether the Secretary of State intends to issue the criteria for the approved person role within three months of Royal Assent. The Department intends to introduce secondary legislation defining “approved person” alongside updated bus franchising guidance to facilitate implementation of the new measures. That work cannot be completed within three months of Royal Assent, as it requires thorough engagement with the sector and the progression of a statutory instrument. The existing legislation will remain in force until secondary legislation is delivered; I hope that gives some reassurance. The Bill gives franchising authorities significant flexibility to specify services in ways that are tuned to the needs of local bus users. More detail on how franchising authorities can use that flexibility will be set out in guidance. The purpose of clause 10 is to broaden the pool of persons able to conduct assurance reports of proposed franchising schemes. Under current legislation, authorities that have developed an assessment of a proposed franchising scheme must obtain an independent assurance report that looks at whether the assessment has been developed with robust financial and economic information and whether the analysis is sufficient. However, the requirement that the report be conducted by an “auditor” has meant that very few people are willing and able to carry out that assurance. The clause seeks to remove the bottleneck and make the franchising process quicker and less costly and, by enabling expertise to be brought in from the wider industry, increase the quality of the independent review. It will also give a franchising authority more flexibility to decide when to appoint an independent assessor, allowing the assessor to provide informal feedback to the authority much earlier in the assessment process, potentially saving both time and money. The Department intends to set out further qualifications and experience in secondary legislation, which will enable a greater number of professionals to undertake assurance and remove the bottleneck that currently exists. Clause 11 requires franchising authorities to consult disabled bus users, prospective users or representative organisations before making a franchising scheme.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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I completely agree. The clause is intended to ensure that local transport authorities understand the perspective of disabled people and make franchising schemes that are better informed by the priorities of disabled passengers and take account of their needs more effectively. The clause sits alongside the schedule, which will introduce similar consultation requirements when authorities vary existing franchising schemes. Government new clause 4 first corrects an issue in the Transport Act 2000. The Act currently states that when preparing a franchising assessment, authorities must consider the local transport plans of any neighbouring Scottish councils, which is unnecessary because Scottish councils do not have local transport plans. The new clause addresses the matter, while maintaining a requirement for franchising authorities to consider bus-related policies adopted by councils in Scotland. It will also require franchising authorities to consider whether a proposed franchising scheme would support the implementation of bus-related policies adopted by neighbouring Scottish transport partnerships, and require franchising authorities to consult Welsh Ministers and Scottish transport partnerships, where appropriate, as part of a consultation on establishing a franchising scheme. Finally, the new clause makes a technical change to define the term “council in Scotland” for the purposes of part 2 of the Transport Act 2000.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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I think it is sad that the hon. Gentleman does not share my confidence in local areas being able to shape their services. I now turn to amendment 74, which is the final non-Government amendment tabled to clause 14. It seeks to ensure that there is a Government-backed scheme that will guarantee that all socially necessary local services continue to operate. As I am sure I have mentioned before, this Government have reaffirmed our commitment to bus services in the recent spending review by confirming around £900 million each year from 2026-27 to maintain and improve vital bus services. Allocations for that fund will be made through the bus funding formula, which already takes account of local need. The Department is also committed to review the current formula and ensure that it is allocated as fairly as possible. That will take place in due course.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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Subsections (5) and (6) of clause 14 were inserted by non-Government amendments in the Lords. This amendment seeks to remove those subsections. Clause 14(5) places a statutory duty on the Secretary of State to undertake an assessment of the implications of ending the £2 national fare cap on passengers’ ability to access socially necessary local services, as proposed in the Bill. Assessing the impact of the withdrawal of the previous fare cap on specific routes would be pointless while the current cap is in place. At the spending review, the Government took the decision to extend that cap to March 2027. Moreover, in February 2025, the Department published an evaluation of the first 10 months of the £2 fare cap. That showed that the cap delivered low value for money. Work is already under way to undertake a review of the £3 bus fare cap. Therefore, a legislative requirement for further evaluative work is duplicative and unnecessary. That subsection is also impractical. Socially necessary local services are a new measure introduced by this Bill; they were, therefore, not in place at the time of the £2 bus fare cap and could not, therefore, have any measurable effect on it. It will also take some time for local transport authorities to identify socially necessary local services. Clause 14(6) places a statutory duty on the Secretary of State to undertake an assessment of how the level of employee’s national insurance contributions may impact on the provision of socially necessary bus services. That includes an assessment of how transport services for children with special educational needs and disabilities are affected. That subsection cuts across existing work of the Department for Education, which has committed to reform the special educational needs and disabilities system. It is also impractical because it is seeking to review three months after Royal Assent. Socially necessary local services are likely to take some time to be identified and agreed, making that assessment premature. I have explained why the Government are seeking to remove both subsections. Having explained why the Government are seeking to remove subsections (5) and (6), I turn to the remainder of clause 14. Clause 14 introduces requirements in relation to socially necessary local services in areas with enhanced partnerships. Enhanced partnerships are statutory partnerships where local transport authorities and bus operators agree on binding goals to improve bus services in their area. This measure will require local transport authorities to identify the services that they consider socially necessary local services as defined in the Bill, and include them as a list in the enhanced partnership plan. Enhanced partnership schemes will need to specify requirements that apply when the operator of a socially necessary local service proposes to cancel or vary the registration of a service in such a way as is likely to have a material adverse effect on the ability of passengers to access essential goods and services, economic opportunities or social activities. Schemes must also require local transport authorities to consider whether any alternative arrangements may be made to mitigate the effects of cancellation or variation. This will not require additional funding. In practical terms, local transport authorities and bus operators will be incorporating the measure into their established processes. Once the legislation has passed, we will be working with stakeholders to implement the measure. Local transport authorities must vary their enhanced partnership plans and schemes to comply with clause 14 within one year of its coming into force. We will be publishing guidance in due course to help local transport authorities and bus operators with the implementation of the measure.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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I simply do not feel that that is necessary. The way in which it is set out is clear enough. I thank my hon. Friend the Member for Middlesbrough and Thornaby East for tabling amendment 72. Clause 13 allows for the direct award of initial franchising contracts to incumbent operators under specific conditions that are set out in the Public Service Obligations in Transport Regulations 2023. In doing so, we aim to reduce transitional risks for local transport authorities and operators when moving to a franchised network. Clause 13 applies equally to private operators and LABCos. If a LABCo is an incumbent operator, it could be directly awarded a franchised contract under the clause. For good reasons, clause 13 includes a restriction on direct awards to incumbent operators only—that is, that any operator providing local services in an area immediately before a franchising scheme is made has been doing so for at least the three months prior. Those reasons include providing a stable, controlled, contractual environment for the transition of staff, as I have mentioned. Clause 13 enables franchising authorities to directly award the first franchising contracts to incumbent operators. That is not about shutting out competition; it is about providing a stable, controlled environment to manage the transition to a franchising model. Long-term franchise contracts will be competitively tendered in the usual way. Franchising authorities may wish to use the direct award measure to help to manage the transfer of staff and assets, gather data to inform future franchise contracts, and provide flexibility to stagger the tendering of competitive franchise contracts at different times. It may also help to support small and medium-sized enterprise operators to gain experience in a franchising model. Direct award can be used only under specific conditions. For example, direct award contracts have a maximum duration of five years and are only for net cost contracts. In many cases, a shorter duration will be appropriate. Further, only the incumbent can receive a direct award contract for the same or substantially similar services.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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Clause 12, alongside the schedule to the Bill, sets out new, bespoke variation procedures for authorities to follow when they wish to make changes to a franchising scheme. The procedures are clear and simple, to address the difficulties that franchising authorities have faced in interpreting existing legislation. They are also streamlined to enable franchising authorities to make minor changes in a more nimble way, balancing appropriate levels of consultation and transparency. This measure will reduce costs and timescales for franchising authorities in meeting the needs of local bus users. Government amendments 7 to 10 to the schedule relate to the procedure for varying franchising schemes. Amendments 7 to 9 would have the effect of confirming that the requirements to consider the local transport plans of neighbouring authorities apply only where an authority is required to have such a plan. Scottish authorities are not required to have local transport plans. The amendments, however, clarify that a franchising authority must consider whether expanding the area of their franchising scheme would support the implementation of any other bus-related plans and policies adopted by Scottish councils. Amendment 10 will ensure that franchising authorities consider Scottish transport partnerships’ transport policies when assessing a variation to a franchising scheme, where relevant. Government amendments 11 to 16 also amend the schedule and will require franchising authorities to consult with Welsh Ministers and Scottish transport partnerships before varying a franchising scheme that would affect them. In the case of Wales, that is in addition to the requirement already in the Bill for Welsh local transport authorities to be consulted, where relevant. It is also appropriate to consult Welsh Ministers in the light of the Welsh Government’s Bus Services (Wales) Bill, which is before the Senedd. The amendments future-proof the Bill, given the Welsh Government’s ambitions to franchise their entire bus network. The schedule sets out the detailed procedures for varying an existing franchising scheme. There are separate procedures for variations to extend the geographical area of a scheme, reduce the area of a scheme, and other types of variation. There are three parts to the schedule, setting out the specifics of the different procedures, depending on whether a variation is expanding or reducing a scheme.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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I thank the hon. Member for Brighton Pavilion for tabling amendments 34 to 37, but the Bill already enables the direct award of franchising contracts to local authority bus companies. Clause 13 allows for the direct award of franchising contracts to incumbent operators under specific conditions that are set out in the Public Service Obligations in Transport Regulations 2023. It would reduce transitional risks for local government authorities and operators when moving to a franchised network. It applies equally to private operators and LABCos. If a LABCo is an incumbent operator, it could absolutely be directly awarded a franchised contract under the clause, as could a private operator, if that was desired by the franchising authority. Clause 13, therefore, already allows franchising authorities to direct awards to LABCos. Amendment 35 would allow a franchising authority to direct awards to a LABCo that is not an incumbent operator. For good reasons, clause 13 includes a restriction on direct awards to incumbent operators—that is, that any operator providing local services in an area immediately before a franchising scheme is made has been doing so for at least the three months prior. Those reasons include providing a stable and controlled contractual environment for staff and assets during a transition, while providing continuity of services to passengers. It also means that operators are established in, and familiar with, the area. That greater operational knowledge will help to drive more effective long-term procurement of competitive franchise contracts through data collection and sharing. Those benefits are most likely to be achieved by franchising authorities working in areas with operators that have an established and reliable presence in the network and with whom they have established effective working relationships. I therefore hope the hon. Member for Brighton Pavilion will withdraw her amendment. Clause 13 already provides most of the powers she seeks, and keeping the incumbent element is an important part of ensuring some of the core benefits of the measure.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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Amendment 39 is not necessary as this issue has already been addressed during debates on the Bill in the other place. At the time, my noble Friend the Minister for Rail made a statement on the Floor of the House to the effect that the definition of a socially necessary local service encapsulates access to healthcare and schools as “essential goods and services”. I hope that that reassures the hon. Member for Brighton Pavilion about the Government’s intention. That being said, the Government will produce official guidance for local authorities on the issue of socially necessary local services. That guidance will refer to healthcare services and educational institutions as constituting “essential goods and services”. Amendment 38 would expand the definition of socially necessary local services to include services that have been abolished in the past 15 years. In addressing it, we should consider the practical issues. A service that has been cancelled in the past 15 years may no longer meet the current needs of the community, which change over time. Furthermore, it is possible that previous services may have been folded into newer and more relevant bus routes. For those reasons, the amendment might not yield the expected beneficial outcomes. That is by no means a prohibition or limitation on the powers of local transport authorities, however. As local transport authorities continually evaluate the needs of their communities, they still retain the power to consider implementing services along former routes, if they believe that doing so would address the needs of their communities. The amendment is therefore not necessary, so I ask the hon. Member for Brighton Pavilion not to press it.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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I beg to move amendment 6, in clause 14, page 10, line 27, leave out subsections (5) and (6). This amendment removes the requirement for the Secretary of State to carry out an assessment of the impact of ending the £2 bus fare cap and of the level of employer’s national insurance contributions.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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Amendment 54 seeks to establish a process for local transport authorities to implement a socially necessary service where no operator has decided to do so. However, I believe it is unnecessary, because legislation already exists to address that issue. Under section 63(1) of the Transport Act 1985 and section 9A of the Transport Act 1968, local authorities are already under a duty to secure public passenger transport services that they consider appropriate to meet the requirements of the area, and which would not otherwise be met. Clause 14 also sets out that enhanced partnership schemes must include a requirement to investigate alternatives that can be provided if a socially necessary service is cancelled or varied in such a way as to have a materially adverse effect on the ability of passengers to access necessary goods and services. The amendment also places an obligation on local authorities to fund specific bus services. However, as I set out before, how local authorities choose to spend their funding is a matter for them. I reflect on previous comments from the Liberal Democrats about being all for devolution, but also liking to stipulate exactly how to do it from the national centre. Local authorities are best placed to make decisions on how and where to prioritise their local bus grant. Restricting the range of choices for how an LTA does so would go against the spirit of the Bill, and it is our aim to give more control to local leaders. I have outlined why I believe that the amendment is not needed, and I ask the hon. Member for North Norfolk to withdraw it.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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Again, it is local areas that are best placed to use the resources given to them. We do not have a magic money tree. I know that the Liberal Democrats have a supply of those, but unfortunately we do not. The Department is also committed to reviewing the formula and ensuring that the money is allocated as fairly as possible. That will take place in due course. Once the allocations are made, it is then for local transport authorities to prioritise their funding according to the needs of their communities. It is right that they make those decisions and Government should not be asked to intervene. I therefore ask the hon. Members to seek to withdraw this amendment. Question put, That the amendment be made.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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I am going to try and make some progress. We have spent a significant amount of time on this. The hon. Member for Broadland and Fakenham once again raised Manchester’s experience with bus franchising. He again quoted figures on the cost of franchising in Manchester. On the first day of the Committee I explained that the figures referred to the level of investment being made to improve Greater Manchester’s bus network. The adoption of franchising in Greater Manchester has resulted in little additional cost, and evidence to date shows that the model is more efficient and effective at delivering value for money. Another franchising model in Jersey encourages both operators and local transport authorities to reinvest into the bus network. The operator keeps fare revenue, and profits that go over a certain set limit are shared between the LTA and the operator. Money is then reinvested by the LTA to improve services. The model adds flexibility and actually supports innovation and draws on the experience of the operator. This model has been tested in other areas through our franchising pilot programme. The Bill makes some limited changes to the role of traffic commissioners in England, including changing the default position for the registration of services operating under the service permits within a franchised area. The traffic commissioner will also have powers to act against operators who breach the Bill’s mandatory training requirements; we will come on to that later in the Committee’s debates. The presence of traffic commissioners across the regions and countries of Great Britain means that they are well placed to make decisions about the operation of bus services in different places. The responsibility of traffic commissioners extends beyond buses. To mention just a couple, it includes the licensing of operators of heavy goods vehicles and other service vehicles, and the granting of vocational licences. These responsibilities clearly extend beyond the Bill’s purpose; this Bill is not the place for a wider debate on the role of traffic commissioners. I reiterate that passengers are at the very centre of this Government’s bus reform agenda. This is about delivering better buses, and people taking the bus more because they offer better connections and are reliable, safe, affordable and integrated into the transport network. Given that, I would ask the hon. Member for Broadland and Fakenham not to press his amendments. Government amendments 4 and 5, tabled in my name, are intended to provide clarity on the type of services considered “cross-boundary” under clause 7. This means that any service that has at least one stop in an area with a franchising scheme, and at least one stop outside of the franchised area, will be considered a cross-boundary service. This change is logical, simplifies matters for franchising authorities and operators, and will ensure that the benefits of cross-boundary services to multiple communities can be considered, regardless of where the service starts and ends. Clause 7 gives local authorities greater flexibility in how they access service permit applications from operators. These permits allow bus operators to run services into, or within, a franchised area on a commercial basis, rather than as a franchised service. The Bill introduces new tests that local authorities can use when deciding whether to approve a service permit. These tests allow them to consider a wider range of factors, such as whether the proposed service would benefit passengers outside the franchised area in the case of cross-boundary services. It is important that franchising authorities are able to benefit from the opportunities that the commercial sector can provide in franchising areas, including for cross-border services, which are those serving a franchising area and nearby areas. These services are important, as the bus journeys that passengers want to make are not necessarily defined by scheme boundaries. This measure aims to give franchising authorities greater flexibility to provide better overall outcomes for passengers. Clause 8 reapplies the requirement for bus services operating under a service permit in a franchised area to register their routes and timetables with the traffic commissioner. For cross-boundary services, the section of the route outside the franchised area already needs to be registered. The Bill clarifies that the part inside the franchised area also needs to be registered. This keeps the requirements consistent and easier for bus operators to follow. In addition to the registration requirements, cross-boundary services and any services operated, under permit, wholly within the franchised area, such as sightseeing tours, must also still comply with the conditions of their service permit. This lets franchising authorities maintain control through existing regulations. However, the Bill also gives franchising authorities the power to exempt certain services from registration inside the franchised area if they would prefer to manage them solely through the service permit. Overall, these changes provide clearer rules for operators and authorities, and greater flexibility for authorities, helping to improve service delivery for passengers. Clause 9 automatically exempts temporary rail and tram replacement services from the requirement to obtain a service permit when operating within a franchised area. As I am sure Members will understand, these services often need to be introduced quickly and to adapt to changing circumstances, so flexibility is essential. By removing the permit requirement, this measure reduces administrative burdens and saves both operators and franchising authorities the time and costs associated with applying for and issuing permits.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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It is a pleasure to serve with you in the Chair, Sir Desmond. The Bill recognises that commercial operators can play a key role in providing commercial services that complement franchising schemes and add value to the overall bus offer for local transport users. That includes cross-boundary services, which provide crucial links between communities. That is why we are legislating to introduce new tests that franchising authorities can use in determining whether to grant service permits. The tests allow authorities to consider a much wider range of benefits that services proposed by commercial operators could provide. The new tests will also allow authorities to tolerate some adverse effects to franchised services if they are outweighed by the benefits. Overall, franchising authorities will have greater scope to grant service permits and harness the additionality of the market in delivering great bus networks. The amendments tabled by the hon. Member for Broadland and Fakenham would, however, undo many of the improvements we are making, and undermine the service permit regime as well as local transport authorities’ ability to franchise. The amendments would largely remove franchising authorities’ ability to even consider whether a commercial service would have an adverse effect on franchised services, while compelling them to grant service permits in the vast majority of cases. In practice, that would mean that commercial services could compete directly with franchised services, undermining the service finances and goals, and ultimately making franchising unworkable. In direct response to the hon. Member’s comments, the Bill gives greater scope for authorities to grant these additional services. However, as he acknowledged, it cannot be a free-for-all, which is what the amendment would in effect cause. We understand that in Greater Manchester the vast majority of service permits have been granted under the existing test, and the Bill’s measure will allow franchising authorities even more flexibility to grant service permits with applications from operators or in the interest of passengers and local people. Addressing the claim of the hon. Member for Isle of Wight East that franchising is unattractive to smaller rural local transport authorities, the Bill aims to give local leaders greater flexibility to determine how best to plan and deliver bus services to meet the needs of local transport users. There is no one-size-fits-all approach. Consideration has been given to rural modes of franchising, and there are plans to pilot models better suited to rural areas, as I have touched on in the past. While it is for local transport authorities to decide the best option to manage their services, franchising can be an attractive option in a rural setting. It can be used to support a fully integrated network, combining core franchise routes with commercial services operating under a service permit awarded by the authority, ensuring strong branch connections to main corridors.
26 Jun 2025 · Bus Services (No. 2) Bill [ Lords ] (Third sitting) · Hansard source
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I did not give way, but I appreciate the hon. Member’s additional comments.

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