More than one route: the many ways to deliver bus services

The Bus Services Act 2025 grants local transport authorities enhanced powers to choose which regulatory model for local buses best meets the needs of local communities.

To support informed decision-making by towns and cities about which model to adopt, CPT has worked with Frontier Economics to assess the benefits and challenges presented by regulatory options.

The handbook, accompanied by an Excel toolkit, considers various models for local bus networks, used as examples to demonstrate the variety of choice available:

• Enhanced Partnerships: shared objectives agreed by operators and local authorities for bus networks, with decisions on routes, timetables and fares in the hands of commercial operators
• Evolved Enhanced Partnerships: broad commercial freedom for operators but shared decisions with local authorities on fares, ticketing, network and timetable
• Franchising – shared risk/Jersey model: operators are involved in the design of the network, and the model includes incentives to grow patronage through profit-sharing arrangements.
• Franchising – “grow it out” model: tendered services are franchised as a first step with a view to expanding franchising to all services.
• Franchising – micro-franchising: franchising applied to a tightly defined area, to maximise localised opportunities, but with an EP operating across the non-franchised areas.
• Franchising – phased franchising model: a phased approach to franchising in the areas of most need.
• Franchising – hybrid model: a model combining a number of features of the models above.

The CPT handbook creates a framework for considering factors including passenger priorities, operating cost pressures, net zero goals, local transport authority capacity and capability, and how the preferred model may interact with different models in other areas. The handbook and toolkit represent the first part of a suite of documents which will support LTAs in their decision-making process, with the Bus Franchising Manual and EP practical guide from the Department for Transport due to be published soon.

The research outlines some of the benefits of Enhanced Partnerships, including how they can effectively leverage the expertise and experience of operators, and the relatively low cost of implementing the system. Conversely, it highlights strengths of franchising including protecting bus operators from risk and giving local authorities more control over service development, and the potential for creating well-integrated multi-modal transport networks across a city region.

The materials, which will be accessible to local transport authorities from today, 10 November include:

• An overview of the bus service regulatory models available for local authorities to choose from;
• An 8-step framework for systematically working through the options and making a decision informed by evidence, expertise and stakeholder views;
• Supporting evidence and illustrations of relevant factors to consider; and
• A multi-criteria decision analysis (MCDA) tool to objectively score various alternative ways of regulating bus services.

CPT Director of Policy and External Relations Alison Edwards said: "There is more than one way to run a bus network. When it comes to England’s 79 widely varying local transport authorities, one size doesn’t fit all.

“While bus passengers in some parts of the country may benefit from a franchised model with strong central control, services in other towns and cities are likely to prosper under Enhanced Partnerships with more commercial freedom for bus operators.

“That's why we've worked with Frontier Economics to give local authorities clarity over the choices they have and an evidence-based toolkit to help them decide the best model for their area. We want to make sure buses are the best they can be for the 11 million journeys people make every day – getting the model right is the first step to making that happen."

Frontier Economics Associate Director Kat Deyes said: “Local buses are the most used form of public transport across the nation and are important for individuals, communities, local economies and the environment. The Bus Services Act 2025 provides Local Transport Authorities with greater powers to choose the model for delivering local bus services that works best in their areas. This choice is important and must be made by making best use of evidence, data and relevant stakeholder views and expertise.

The independent Handbook and Toolkit that Frontier has had the pleasure of developing on behalf of CPT provides a practical step-by-step framework to support local areas with these decisions. It identifies the range of options available and how the relevant benefits, risks and costs can be transparently assessed and compared. Every area is different, so choosing the right local model is a crucial part of enabling bus services to support thriving local communities.”

Minister for Roads and Buses Simon Lightwood MP said: “Our landmark Bus Services Act has finally put the power over bus services in the hands of local leaders, letting them decide exactly how to run their bus networks for the benefit of passengers, not profit.

Our vital legislation paves the way for better bus services that best connect people to jobs, education and opportunity – all central to our Plan for Change - and I’m pleased to see the publication of this handbook and toolkit, which will help leaders make the best decisions for their communities.”

The Association of Directors of Environment, Economy, Planning & Transport (ADEPT) Chair of the Transport & Connectivity Board David Shepherd said: “ADEPT welcomes the launch of CPT’s new handbook and toolkit: it’s a really useful resource for local transport authorities, that will help them navigate the complexity of bus service regulation.

The range of models presented in the documents reflect the diversity of our places – from urban areas to rural communities and everything in between. The key is that local transport authorities can make informed choices that reflect local needs, ambitions and capabilities.

This resource comes at the right time and gives practical support to help ensure bus services meet local needs, while also supporting wider goals around connectivity, decarbonisation and inclusive growth.”

ATCO Chair Damien Jones said: “The Association of Transport Coordinating Officers (ATCO) are pleased that CPT involved the organisation in the Handbook and accompanying toolkit, which provides local authority officers and elected Councillors a toolkit to help inform the bus model delivery that is right for their area.”

Campaign for Better Transport (CfBT) Chief Executive Ben Plowden said: “Local transport authorities have important choices to make about how their bus networks should be regulated. We are pleased to support this timely and important work by CPT and Frontier Economics, which examines the pros and cons of different regulatory models. With a range of possible options, this work should inspire and empower local authorities to decide what will work best for them and their communities."

Access the handbook and toolkit below

Handbook: https://www.cpt-uk.org/media/g13fe3xb/prs_lta-handbook-final.pdf 

Toolkit: https://www.cpt-uk.org/media/e3ibm5ko/copy-of-spd-mcda-toolkit-final.xlsx