Bus franchising in England: what it could mean for community transport

The Department for Transport has published a new franchising manual for local authorities that want to franchise their bus networks. This matters for our sector because the direction of travel is clear: more councils are being encouraged to take greater control of local bus services. Even if franchising is not imminent everywhere, the shift toward more planned and managed networks will affect anyone involved in community transport, whether you operate services, support passengers or plan networks.

So, what is franchising in practice? Instead of operators choosing routes and fares, the local authority designs the network and contracts operators to run the services. This looks more like London or Greater Manchester and less like the deregulated model most of England has known for decades.

The new guidance is a step-by-step framework to help councils decide if franchising is right for them, consult with stakeholders, build a business case and manage the risks that come with redesigning an entire network.

For community transport, franchising brings opportunities along with important questions. A franchised network can be better planned and more joined up, with fewer gaps and more attention to people who do not follow traditional commuter patterns. That is where community transport consistently adds value by reaching rural communities, isolated estates and passengers with limited options.

At the same time, franchising changes who makes decisions and how services fit together. If councils take responsibility for designing the full network, we need to make sure community transport is clearly positioned within that picture. Are we recognised as part of the network and contributing to local priorities, treated as an afterthought, or not even thought of at all?

One key point in the guidance is the treatment of permits and exemptions. Services run under Section 19 and Section 22 permits remain exempt from holding a local service permit, even in a franchised area. This provides important protection for not-for-profit, community-led transport. It allows our services to continue without facing the same processes as commercial operators.

The exemption does not mean we can stand apart. It makes collaboration even more important so that S19 and S22 services are understood, valued and fully integrated into planning. Our influence depends on how early and seriously we engage.

For councils who are CTA members, franchising brings challenges around capacity, evidence and engagement. The guidance makes it clear that consultation is essential, not optional. For community transport operators, this is equally important. If we are not contributing data and insight early on, networks may be designed without a full understanding of the communities we serve.

The guidance also discusses procurement and contracts. Franchising does not automatically favour large operators. Councils can design contracts in ways that create opportunities for smaller and mission-led providers. This only happens if there is a deliberate choice to value a mixed economy of provision.

The central question is not whether franchising will happen, but whether the role of community transport is understood from the start. If your area is exploring franchising, these questions can help guide early conversations:

• How are we defining socially necessary services? (further guidance on this is expected soon from DfT)
• How are we involving organisations that already work with passengers who face the greatest barriers?
• How will smaller and not-for-profit operators participate in the new system?
• Where do flexible, community-led services fit alongside fixed-route networks?

The publication of this guidance is a signal that now is the time to build strong engagement across the system. Councils need to work openly with the community transport sector. Operators need to be ready with evidence, insight and ideas.

When community transport is in the room, sharing evidence, insights and lived experience, franchising becomes something we help shape rather than something that happens around us. If we are not part of that conversation, others will define the future, and they may not see what we see every day.

What you should do next

CTA is already engaging with local areas and with DfT to understand how community transport can be involved in designing franchised networks. We encourage you to do the same. Local operators are the strongest advocates for community transport.

Current areas considering franchising include (DfT franchising pilots or feasibility work):

• York and North Yorkshire Combined Authority
• Cheshire West and Chester Council
• Cumbria
• Hertfordshire County Council

Combined authorities with active franchising decisions or commitments:

• Greater Manchester Combined Authority
• Liverpool City Region
• West Yorkshire Combined Authority
• South Yorkshire Mayoral Combined Authority
• West Midlands Combined Authority
• Cambridgeshire and Peterborough Combined Authority
• North East Combined Authority

Read the DfT Bus Franchising Manual