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Route Restrictions and Subsidies FAQs

Route Restrictions and Subsidies FAQs

Can any restrictions be placed on the service I wish to run?

In special cases, yes. At the request of a local authority responsible for traffic (‘a traffic authority’), the Traffic Commissioner may attach traffic regulation conditions to your PSV operator’s licence, if he thinks that they are needed, to stop danger to road users or reduce severe traffic congestion in a particular area.

Conditions can affect:

  • Routes of services
  • The stopping places
  • The times vehicles may stop and for how long
  • The turning or reversing manoeuvres vehicles may make
  • The number of vehicles or their frequency.

If several operators are running local services in an area, traffic regulation conditions will be attached to the licences of each operator, although sometimes, it may be necessary to make slight differences between operators (for example to allocate stops to particular services).


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Can I ask for an inquiry?

A notice of proposed traffic regulation conditions will be published in Notices and Proceedings and any operators who will be affected by the proposal will be told of it. If you have a registered service which will, or may, be affected by a proposal, you can ask the Traffic Commissioner for an inquiry. You must do so within 28 days of the notice being published.

In some cases the Traffic Commissioner may decide that the conditions must start straight away. In this case he will tell all operators concerned and the conditions will be put on their licences. Operators will still have the chance to ask for an inquiry if they feel the conditions are unfair or unsuitable. They must do so within 28 days of the decision being published in ‘Notices and Proceedings’.

If an operator is unhappy with the decision taken by the Traffic Commissioner he can appeal to the Secretary of State. This must be done within 28 days of the decision being published in ‘Notices and Proceedings’.

If at a later date the operator feels that the traffic regulation conditions are no longer needed or should be changed, he can apply to the Traffic Commissioner to make these changes. If the Traffic Commissioner refuses to take any action, or comes to an unfavourable decision, he can appeal to the Secretary of State.

What if I cannot run my service under the conditions?

In this case you must change the registration. You have 28 days in which to do so. In the meantime, you must obey the traffic regulation conditions, and run your service as best you can under them. You will not be penalised for failing to run the service as registered, and you will not have to pay a fee if you change the registration because of these conditions.


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What if I disobey the conditions?

It is against the law to disobey traffic regulation conditions, or any other conditions on your PSV operator’s licence. (Please note: a Traffic Commissioner may place a condition on your licence which forbids you from running some types of services, or any local services at all.)


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What subsidies are available for running local services?

County, unitary authorities, regional and island councils and Passenger Transport Executives (PTEs) will offer subsidy contracts for services which are not commercial but which they think are socially necessary. Some district/borough councils in England and Wales also subsidise this sort of service. If a council or PTE wants to subsidise any service it will ask for tenders from operators, and the subsidy contract will be given to the operator who offers the best value for money.

It could pay you to get in touch with the council or PTE in your area and ask them to send you details of all their invitations to tender, or of any type that would interest you.

Must all subsidised services be put out to tender?

All local bus service subsidy agreements must be put out to tender, except when very small subsidies are involved. A subsidy worth less than £12,000 per year may be awarded without going to tender, but the same operator cannot get more than £70,000 per year through these small contracts from the same authority without competitive tendering.

When a council or PTE needs to start a service at short notice (e.g. when another operator has given it up), it can award a short-term contract without going to tender, but must then go out to tender as soon as possible.

If my service doesn’t pay can I ask to be subsidised?

You can ask a council or PTE to subsidise a service if it is not making any money, though they do not have to agree to do so. Even if they do agree to subsidise it, they will usually have to put it out to tender, so there is always the risk that another operator will win the tender.


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Can I claim a bus service operator’s grant (previously fuel duty rebate)?

Bus service operator’s grants are payable for registered local services (and London local services) as long as:

  • They are not excursions or tours
  • They satisfy certain other conditions, basically to make sure that they can be used by the general public.

A leaflet explaining the conditions and how to claim the grant is available on the following link. Conditions of Eligibility (PSV360) for Bus Service Operators GrantLinks to another website., Bus Service Operator’s Grant, Great Minster House, 76 Marsham Street, London, SW1P 4DR.


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What happens about concessionary fares?

Local authorities may run concessionary fares schemes for elderly, blind and disabled people, and for children. Some authorities may rely on voluntary participation by operators; others may use their powers to make operators take part. A detailed guide is available on the following link. Concessionary bus faresLinks to another website.


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Can I join a concessionary fares scheme?

If you operate a service which is eligible for fuel duty rebate, you have the right to take part in a concessionary fares scheme run by a local authority. You will be treated in the same way as other operators and be reimbursed for carrying passengers at cheaper rates.

Once the local authority has published details of their scheme within a certain time (this is fully explained in the Department for Transport guide). The only circumstances in which the local authority would not let you join is if they get a special exemption from the Secretary of State to do so in relation to your particular service.

When can I apply to join a scheme?

There will be plenty of opportunities for you to take part in schemes although for more information you should contact the local authorities in your operating area.


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Can I be made to join a scheme?

Local authorities have powers to make operators take part in their schemes by issuing a participation notice. They may decide to do so if they think your taking part is important to their scheme.


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Can I appeal against compulsory participation?

Yes, if you think that taking part in the scheme may not be appropriate in your case (e.g. if the reimbursement offered does not cover the costs of providing the concession), you may apply to the Secretary of State for the participation notice to be cancelled or varied. Any participation notice sent to you will give more details about this.


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Page last updated: 28/10/2008