Part V

Financial Provisions

Expenditure on public passenger transport services

Obligation to invite tenders for subsidised services.
89
1
Subject to sections 90 and 91 of this Act, an authority responsible for expenditure on public passenger transport services may not enter into an agreement providing for service subsidies under which a local service is to be provided except by accepting a tender invited in pursuance of this section.
2
Where any such authority propose to secure the provision of any local service by entering into any such agreement, the authority shall invite tenders for the provision of that service for such period and on such basis as may be specified in the invitation to tender.
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Subject to subsection (5) below, any such invitation—
a
must be issued generally, in such manner as the authority issuing the invitation consider appropriate for bringing it to the attention of persons who may be interested; and
b
must also be issued individually to all persons who have given to that authority a written notice indicating that they wish to receive invitations to tender for the provision of local services for that authority’s area or (as the case may be) for the provision of such services of any description to which the invitation relates.
5
Any such notice shall specify the address to which any such invitation is to be directed, and it shall be sufficient for the purposes of subsection (4)(b) above if the authority send the invitation to the person giving any such notice at the address so specified.
6
An authority issuing an invitation to tender under this section shall not accept any tender submitted by a person who is not the holder of either—
a
a
PSV
operator’s licence, not being—
i. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
a licence to which any condition is attached under section 26 of this Act prohibiting the holder from using vehicles under the licence to provide local services of all descriptions or (as the case may be) of any description to which the invitation relates; or
b
a permit under section 22 of this Act.
7
An authority issuing an invitation to tender under this section shall, in determining whether to accept a tender submitted in response to the invitation or which (if any) of several such tenders to accept, have regard in particular to—
a
a combination of economy, efficiency and effectiveness;
b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
the reduction or limitation of traffic congestion, noise or air pollution.
8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 89 applied (with modifications) (E.W.) (1.2.2005) by The Local Authorities' Plans and Strategies (Disapplication) (England) Order 2005 (S.I. 2005/157), art. 7(2)(b), Sch. 2 Pt. 2 para.3 (with art. 7(4))
S. 89 repealed (S.) (1.4.2003) by Local Government in Scotland Act 2003 (asp 1), ss. 60(3)(c), 62(2); S.S.I. 2003/134, art. 2(1), Sch.
S. 89(1) excluded (28.7.1998) by 1998 c. iii, s. 1, Sch. s. 51(2) of Order
S. 89(1) excluded (24.7.2002) by S.I. 2001/3627, art. 50
S. 89(1) restricted (W.) (1.4.2002) by S.I. 1985/1921, reg. 3 (as substituted by The Service Subsidy Agreements (Tendering) (Amendment) (Wales) Regulations 2002 (S.I. 2002/520, reg. 2)
S. 89(1) excluded (E.) (2.9.2002) by The Service Subsidy Agreements (Tendering) (England) Regulations 2002 (S.I. 2002/2090), reg. 3
S. 89(1) restricted (13.12.2006) by The Luton Dunstable Translink Order 2006; S.I. 2006/3118, art. 35
S. 89(3) repealed (E.W.) (1.2.2001 for E. and 14.8.2002 for W.) by 2000 c. 38, s. 274, Sch. 31 Pt. II; S.I. 2001/57, art. 3(2), Sch. 3 Pt. I (with saving in Sch. 3 Pt. II (as amended by S.I. 2001/115, art. 3)); S.I. 2002/2024,{art. 2(b)}
S. 89(6)(a)(i) repealed (8.11.1995) by 1995 c. 44, s. 1(1), Sch. 1 Pt. V Group 2
S. 89(7)(8) substituted (E.W.) (1.2.2001 for E. and 1.8.2001 for W.) by 2000 c. 38, s. 152(2); S.I. 2001/57, art. 3(2), Sch. 3 Pt. I (with saving in Sch. 3 Pt. II (as amended by S.I. 2001/115, art. 3)); S.I. 2001/2788, art. 2, Sch. 1 para. 7
Pt. 5 (except ss. 110, 111): transfer of functions (1.7.1999) by S.I. 1999/672, art. 2, Sch. 1
S. 89(7)(b) repealed (9.2.2009 for E., 1.4.2009 for W.) by Local Transport Act 2008 (c. 26), ss. 10(11), 134(4), Sch. 7 Pt. 1; S.I. 2009/107, art. 2(2), Sch. 2 Pt. 1 (with Sch. 2 para. 2); S.I. 2009/579, art. 2(b) (with Sch. para. 1)
S. 89(8) repealed (9.2.2009 for E., 1.4.2009 for W.) by Local Transport Act 2008 (c. 26), ss. 10(11), 134(4), Sch. 7 Pt. 1; S.I. 2009/107, art. 2(2), Sch. 2 Pt. 1 (with Sch. 2 para. 2); S.I. 2009/579, art. 2(b) (with Sch. para. 1)
S. 89(1) excluded (E.) (11.1.2010) by The Quality Contracts Schemes (Tendering Requirements) (England) Regulations 2009 (S.I. 2009/3244), regs. 1(1), 3(1) (with reg. 9)
Pt. 5 modified (E.W.) (1.4.2011) by The Concessionary Bus Travel Act 2007 (Variation of Reimbursement and Other Administrative Arrangements) Order 2010 (S.I. 2010/1179), arts. 1(3)(b), 5(1)(a)
Pt. 5: transfer of functions (E.W.) (1.4.2014) by The Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral Combined Authority Order 2014 (S.I. 2014/865), arts. 1, 8(1)(a) (with arts. 8(4), 12)
Pt. 5: transfer of functions (E.W.) (15.4.2014) by The Durham, Gateshead, Newcastle Upon Tyne, North Tyneside, Northumberland, South Tyneside and Sunderland Combined Authority Order 2014 (S.I. 2014/1012), arts. 1, 8, 9 (with art. 11)
Pt. 5: delegation of functions (E.W.) (1.4.2016) by The Tees Valley Combined Authority Order 2016 (S.I. 2016/449), arts. 1(a), 6(a)
Pt. 5: functions made exercisable (E.W.) (9.2.2017) by The West of England Combined Authority Order 2017 (S.I. 2017/126), arts. 1(3), 8
Pt. 5: functions made exercisable (E.W.) (3.3.2017) by The Cambridgeshire and Peterborough Combined Authority Order 2017 (S.I. 2017/251), arts. 1(2)(b), 8(a)
Pt. 5 functions made exercisable (E.W.) (8.5.2017) by The Tees Valley Combined Authority (Functions and Amendment) Order 2017 (S.I. 2017/431), arts. 1(2), 4(1)(a)
Pt. 5: transfer of functions (E.W.) (2.11.2018) by The Newcastle Upon Tyne, North Tyneside and Northumberland Combined Authority (Establishment and Functions) Order 2018 (S.I. 2018/1133), arts. 1, 7 (with art. 28)
Pt. 5 functions made exercisable (E.W.) (2.11.2018) by The Newcastle Upon Tyne, North Tyneside and Northumberland Combined Authority (Establishment and Functions) Order 2018 (S.I. 2018/1133), arts. 1, 9 (with art. 28)
Pt. 5: functions made exercisable (E.W.) (20.12.2023) by The York and North Yorkshire Combined Authority Order 2023 (S.I. 2023/1432), arts. 1(2), 13(1)(2)
Ss. 88-92: functions made exercisable concurrently (E.) (28.2.2024) by The East Midlands Combined County Authority Regulations 2024 (S.I. 2024/232), regs. 1(2), 14(4)
Pt. 5: functions made exercisable (E.) (28.2.2024) by The East Midlands Combined County Authority Regulations 2024 (S.I. 2024/232), regs. 1(2), 14(1)
Pt. 5: functions made exercisable concurrently (E.W.) (7.5.2024) by The North East Mayoral Combined Authority (Establishment and Functions) Order 2024 (S.I. 2024/402), arts. 1(3), 19(b) (with art. 9)
Pts. 4, 5: transfer of functions (E.) (5.2.2025) by The Hull and East Yorkshire Combined Authority Order 2025 (S.I. 2025/113), arts. 1(2), 7
Pts. 4, 5: transfer of functions (E.) (5.2.2025) by The Devon and Torbay Combined County Authority Regulations 2025 (S.I. 2025/115), regs. 1(2), 9
Pts. 4, 5: functions made exercisable (E.) (5.2.2025) by The Greater Lincolnshire Combined County Authority Regulations 2025 (S.I. 2025/117), regs. 1(2), 13
Pts. 4, 5: functions made exercisable (E.) (5.2.2025) by The Lancashire Combined County Authority Regulations 2025 (S.I. 2025/118), regs. 1(2), 9