Scotlands Bus Network Overhaul: Transitioning to a Franchising Framework

In a significant move to reshape local bus services, Scotland is rolling out the Public Service Vehicles (Registration of Local Services) (Local Services Franchises Transitional Provisions) Regulations 2025. This legislative step is part of a broader strategy under the Transport (Scotland) Act 2019, aimed at giving local transport authorities the flexibility needed to revitalize and customize their bus networks.

From Deregulation to Franchising

The core of this transformation is the shift from a deregulated bus market to a franchising framework. Here's how it works: local transport authorities will establish a franchising framework, setting the rules and standards for bus services in their area. Bus operators will then enter into franchise agreements to run services under this new framework. This model promises more control and adaptability for local authorities, replacing the outdated quality contracts model from the Transport (Scotland) Act 2001.

Managing the Transition

Transitioning to this new system involves careful management to minimize disruptions. The regulations define a "transitional period" during which the existing deregulated system will gradually give way to the franchising model. Key to this transition is a stipulated 112-day notice period for any changes, variations, or cancellations of bus services registered under the new framework. This buffer allows local authorities ample time to make alternative arrangements if an operator decides to withdraw or change their services prematurely.

Regulatory Oversight and Exemptions

During this period, traffic commissioners play a crucial role. They are instructed not to accept applications to register, vary, or cancel services outside the franchise framework unless they fall into exempt categories. However, to ease the transition, operators can still register services with the traffic commissioner, although these services cannot commence until they exit the franchising framework.

Children’s Rights and Consultation

The Scottish Government has ensured that these regulations align with the UN Convention on the Rights of the Child, affirming no adverse impacts on children's rights. The journey to these regulations included a public consultation in 2021, engaging a broad spectrum of stakeholders from local authorities to trade unions, ensuring diverse perspectives were considered.

Minimal Financial Impact

Financial implications of these changes are expected to be minimal, with a partial Business and Regulatory Impact Assessment indicating no significant financial effects on government or businesses.

As Scotland moves towards a more controlled and tailored bus service model, these regulations are a pivotal step in ensuring a smooth and efficient transition, promising improved public transport services across the nation.