Bus Services Bill to remove ban on councils setting up own bus companies

The ban on local authorities establishing their own bus companies will be lifted under the Bus Services Bill, which was introduced in the House of Lords today (17 December).

The Department for Transport said the move would make it easier for councils to control services and shape routes to work better for local people.

The bill will also empower local authorities to work alongside private operators to improve bus services if they choose to not pursue full ownership, the DfT added.

The legislation would additionally ensure that lifeline bus services cannot be removed or changed without councils reviewing their ability to serve communities, especially those in rural or deprived areas.

Transport Secretary, Heidi Alexander, said: “It is high time we recognise that local leaders need to be able to make decisions about their buses. 

“The introduction of the Bus Services Bill marks the next step on our journey to overhaul how bus services operate, delivering on our commitment to improve living standards across the country."

New guidance has meanwhile been published to support local authorities in streamlining the bus franchising process.  

The introduction of the bill comes after the Government announced earlier this week that local leaders would be given new powers to shape rail services.