Today marks a significant moment as the Bus Services (No. 2) Bill enters the House of Commons. This long-anticipated legislation aims to unlock the true potential of bus services across England - making it easier for local leaders to pursue reform and manage their local networks for the benefit of all users.

Why buses matter

Buses are the unsung heroes of public transport, facilitating over 3.6 billion passenger journeys in England every year. Half of these are essential journeys - commutes to school or work - enabling education, employment, and economic opportunity. But buses do more than move people: they drive local economies. A 10% improvement in access to bus services could help 50,000 more people into employment, particularly in UK’s most deprived communities

Buses are integral to inclusive growth, social equity, and environmental sustainability. Each £1 invested in bus services returns £4.55 to the economy, and the sector supports over £11 billion in economic activity each year. Moreover, passengers themselves contribute an additional £15.6 billion through the activities that buses enable them to pursue. Yet despite these vital contributions, bus services have been locked in long-term decline - accelerated by the pandemic and worsened by fragmented governance and an unpredictable funding landscape.

A chance to transform how buses work

Since deregulation in 1986, there have been two models for bus service operation in England: the franchised model used in London, and the deregulated free market model used elsewhere. London’s franchised network has produced an accessible, well-integrated system with over 99% of Londoners living within 600 metres of a bus stop. Elsewhere, however, services have become patchy, with routes reduced or withdrawn as commercial viability declines - placing an increasing burden on local authorities to fill the gaps, often without sufficient resources.

The 2017 Bus Services Act made franchising possible beyond London, but only for Mayoral Combined Authorities (MCAs) and with complex and often contradictory systems and requirements in the legislation. Greater Manchester has led the way, launching its fully franchised Bee Network in January 2025. Early data shows promising improvements, with punctuality up by 10% for recently franchised routes. The number of Bee Network bus journeys has increased by 14% year on year in the first two franchising areas, with strong signs of growth in the final tranche. Inspired by this success, more city regions - Liverpool, West Yorkshire, South Yorkshire, West Midlands and Cambridgeshire and Peterborough - are pursuing bus reform.

What the Bus Services Bill seeks to do

The Bus Services (No. 2) Bill builds on these developments by addressing the shortcomings of the 2017 Act and making franchising a more accessible, flexible, and effective option for all Local Transport Authorities (LTAs).

The Bill introduces numerous reforms to streamline the franchising process. These include:

• Simplifying service specifications to allow for more agile and responsive networks.
• Making it easier to amend or vary a Franchising Scheme, removing the mandatory six-month waiting period.
• Simplifying the service permit granting process, addressing what is currently a complicated, time-consuming and highly prescriptive process.
• Providing clearer guidelines for independent assessments.

In addition, the Bill also enables LTAs to set up publicly owned bus companies, tackle fare evasion and anti-social behaviour on franchised service vehicles, and devolves grant design to the LTA - ensuring funding can be better targeted to align with local priorities.

Enhanced Partnerships (EPs) are also addressed, with new obligations on LTAs to identify and take steps to protect socially necessary services. Like franchised services, the Bill seeks to address shortcomings in the current process by, for example, making amendments to the approach of varying existing EP schemes and handling objections and information provision. Further changes to the EP process are expected to come through the currently ongoing EP Review later in the summer.  

Looking ahead: Beyond legislation

While the Bill provides a robust framework, its success depends on more than just legislative reform. It must be backed by timely guidance and a long-term, sustainable funding settlement for bus services. Without this, even the most empowered local authorities will struggle to deliver the services their communities need.

Importantly, the Bill also sets its sights on the future with powers to phase out polluting buses and shift towards zero-emission fleets. We support action to enable bus fleets to be decarbonised, particularly through providing clarity on demand. However, such a provision will need to be accompanied by further support to domestic manufacturers and through a sustainable long term funding source for LTAs and operators to support them to purchase new sustainable bus fleets.

The Urban Transport Group strongly supports the measures set out in the Bus Services Bill. If implemented alongside clear and timely guidance and adequate long-term funding, this legislation could mark a turning point in the story of England’s buses - ending decades of decline and empowering local areas to create transport networks that truly work for their communities.

Monta Drozdova and Tom Ellerton

Monta is Policy Advisor, and Tom is Technical Manager, at the Urban Transport Group