TheGrandWazoo
Veteran Member
We are veering off topic so hopefully this will help clarify the issue of local councils and bus companies...
The 1985 Transport Act introduced the deregulation of bus services in Great Britain (excl London) in 1986. All PTE and council owned businesses had to be formed into arms length businesses so that they were on an equal footing with private businesses. The shareholders were the local authority(s) or PTAs. This was to ensure that they were on an equal footing with private businesses - they could obtain loans from their shareholders but not be subsidised. Most were subsequently privatised via outright purchase by large groups, either directly or via sale to management and employees who later sold out. Some still exist - notably Lothian, Reading and Nottingham among others.
However, there was provision for services to be provided where there was no other alternative or in terms of specialist provision of services by local authorities (and in these times of austerity, LAs have been forced to use welfare vehicles for local bus services such as North Yorkshire).
The 2017 Buses bill seeks to provide options to local authorities etc in terms of additional powers but specifically precludes them from setting up their own bus companies:
Bus companies: limitation of powers of authorities in England
(1)A relevant authority may not, in exercise of any of its powers, form a company for the purpose of providing a local service.
(2)Subsection (1) applies whether the relevant authority is acting alone or with any other person.
(3)In this section—
“company” has the same meaning as in the Companies Acts (see sections 1(1) and 2(1) of the Companies Act 2006);
“form a company” is to be construed in accordance with section 7 of the Companies Act 2006;
“local service” has the same meaning as in the Transport Act 1985 (see section 2 of that Act);
“Passenger Transport Executive”, in relation to an integrated transport area in England or a combined authority area, means the body which is the Executive in relation to that area for the purposes of Part 2 of the Transport Act 1968;
“relevant authority” means—
(a)a county council in England;
(b)a district council in England;
(c)a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009;
(d)an Integrated Transport Authority for an integrated transport area in England;
(e)a Passenger Transport Executive for—
(i)an integrated transport area in England, or
(ii)a combined authority area.
Hope that explains why councils can't go buying bus companies (aside from their finances). Now.....back to First Group
The 1985 Transport Act introduced the deregulation of bus services in Great Britain (excl London) in 1986. All PTE and council owned businesses had to be formed into arms length businesses so that they were on an equal footing with private businesses. The shareholders were the local authority(s) or PTAs. This was to ensure that they were on an equal footing with private businesses - they could obtain loans from their shareholders but not be subsidised. Most were subsequently privatised via outright purchase by large groups, either directly or via sale to management and employees who later sold out. Some still exist - notably Lothian, Reading and Nottingham among others.
However, there was provision for services to be provided where there was no other alternative or in terms of specialist provision of services by local authorities (and in these times of austerity, LAs have been forced to use welfare vehicles for local bus services such as North Yorkshire).
The 2017 Buses bill seeks to provide options to local authorities etc in terms of additional powers but specifically precludes them from setting up their own bus companies:
Bus companies: limitation of powers of authorities in England
(1)A relevant authority may not, in exercise of any of its powers, form a company for the purpose of providing a local service.
(2)Subsection (1) applies whether the relevant authority is acting alone or with any other person.
(3)In this section—
“company” has the same meaning as in the Companies Acts (see sections 1(1) and 2(1) of the Companies Act 2006);
“form a company” is to be construed in accordance with section 7 of the Companies Act 2006;
“local service” has the same meaning as in the Transport Act 1985 (see section 2 of that Act);
“Passenger Transport Executive”, in relation to an integrated transport area in England or a combined authority area, means the body which is the Executive in relation to that area for the purposes of Part 2 of the Transport Act 1968;
“relevant authority” means—
(a)a county council in England;
(b)a district council in England;
(c)a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009;
(d)an Integrated Transport Authority for an integrated transport area in England;
(e)a Passenger Transport Executive for—
(i)an integrated transport area in England, or
(ii)a combined authority area.
Hope that explains why councils can't go buying bus companies (aside from their finances). Now.....back to First Group