The Bus Services Bill: An operator's guide to the latest developments

In this practical guide we’ll share how you can prepare to thrive in this new regulatory landscape, outlining any updates, breaking down the key implications, and explaining how the right digital tools can ease this legislative burden. 

The Bill's progress: What's happening right now? 

The ‘Bus Services (No. 2) Bill’, as it's officially known, is now well on its journey through Parliament. After being introduced in late 2024 and passing through the House of Lords, it is now in its final stages in the House of Commons, with the Commons Report Stage having taken place in September 2025. This means the legislation is very close to receiving Royal Assent and becoming law. 

The central theme of the Bill is a significant devolution of power. Instead of a one-size-fits-all approach from Westminster, Local Transport Authorities (LTAs) and Combined Authority Mayors will be empowered to take far greater control over their bus networks. 

Here’s what these powers mean in practice for you: 

• Franchising is now easier: The Bill streamlines the process for LTAs to franchise their bus services. This removes the previous requirement for the Secretary of State's consent, allowing local authorities to move more quickly to a London-style franchising model. For operators, this means a shift from a largely commercial, competitive model to a contracted one where the LTA specifies the routes, frequencies, and standards. 

• Strengthened Enhanced Partnerships (EPs): It reinforces the Enhanced Partnership model, where LTAs and operators collaborate. This framework places new obligations on operators, particularly around providing data and meeting service standards. 

• Mandatory data sharing and transparency: A major focus of the Bill is on improving data. Operators will be required to share standardised data on service performance, real-time location, and fares. This information will be used by LTAs for network planning and will be made public for passengers. 

• Mandatory staff training: It introduces new requirements for mandatory training for bus staff. This includes training on assisting disabled passengers and dealing with onboard crime and anti-social behaviour. 

• The push for Zero-Emission Buses (ZEBs): It also introduces a restriction on registering new non-zero-emission buses, with a proposed effective date of no earlier than 1 January 2030. This sets a clear timeline for the industry-wide transition to cleaner fleets. 

The implications for your business: Navigating the new landscape 

The Bill marks a fundamental shift for bus operators, moving the industry from decades of deregulation to a new era of strategic partnership and directive. This brings both challenges and opportunities. 

From competition to compliance 

In a franchised system, your business model fundamentally changes. Your primary focus will shift from competing for passengers and managing routes commercially to winning and executing against LTA contracts. This requires a strong focus on compliance, reporting, and meeting contractual obligations. 

The cost of compliance 

The new requirements, from mandatory training to data collection and reporting, will place a new administrative burden on your business. Implementing robust systems to track this information is not just a "nice-to-have" but a necessity to avoid penalties and operate efficiently. 

The funding question 

While the Bill gives LTAs new powers to make grants to operators for services, the key question of funding remains. Operators will need to work closely with their local authorities to ensure that new service obligations are matched by sustainable funding models, whether through franchising payments or enhanced partnership grants. 

Seizing the opportunity 

It’s not just about new rules; it's a chance to modernise and build a more resilient business. By becoming a strategic partner to your local authority, you can help shape the future of local transport. Operators who can demonstrate efficiency, reliability, and a commitment to new standards will be well-positioned to win contracts and secure a stable, long-term future. 

How to prepare for the changes 

The time to prepare is now. Being proactive and having the right systems in place will be key to a smooth and successful transition. Here are the steps you should be taking: 

1. Understand your local authority's strategy: The first step is to engage with your LTA to understand their plans. Are they pursuing franchising or strengthening an Enhanced Partnership? Knowing their strategy will allow you to tailor your business plan and investments.

2. Review your data management: The new data reporting requirements are not optional. Assess your current systems to see if they can collect and share the required information on performance, ridership, and fares. 

3. Assess workforce and training: Take a look at your current training programmes. Do they meet the new mandatory requirements for driver training on topics like assisting disabled passengers and dealing with anti-social behaviour? 

4. Plan for fleet modernisation: The push for Zero-Emission Buses is a long-term change. Begin thinking about your fleet strategy now, including the capital investment required for new vehicles and the necessary charging infrastructure. 

How technology can help you achieve regulatory compliance 

The right technology can help bus operators like you to meet your biggest day-to-day obligations, while also assisting with the challenges posed by continuous regulatory developments. The OneAdvanced FSG (Finance, Spend & Governance) portfolio provides the accurate and transparent financial reporting needed for LTA contracts, helping you to manage complex revenue streams and prove financial viability.  

Our composable applications offer automation, robust data collection, and one version of the truth, facilitating the speed and accuracy needed when sharing performance data with LTAs, and providing ultimate visibility around governance frameworks. The AI-powered Risk Assist solution aids with tracking against new regulations, allowing you to generate risk statements that align with legislation, gain control suggestions like enforced breaks and training, identify gaps and recommend new effective controls, and propose proactive actions such as shift swaps for drivers.   

Our WFM (People & Workforce Management) portfolio simplifies the tracking of employee training, ensuring every worker has the skills and certifications needed to legally/effectively complete the jobs they’re being asked to fulfil. These systems are built with desk-free workers in mind, making their lives easier while streamlining operational processes related to the likes of resourcing, scheduling, and time tracking. 

We understand that change is daunting, but we serve as a strategic partner (rather than just a provider), keeping you on the cutting-edge and working collaboratively so that you can input into our long-term tech roadmap. Our technology has built-in compliance, integrations, and AI capabilities, so that you can focus on what you do best: providing an exceptional service for your community. 

Conclusion: Ready for the road ahead 

The Bus Services Bill represents a historic shift in the UK bus industry. While it presents new hurdles, it also creates a unique chance to modernise, build stronger partnerships, and ultimately deliver better, more reliable outcomes for passengers.  

By taking a proactive approach and leveraging the power of innovation, your organisation can be ready for the road ahead.