UK Trends and Developments Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies, Backhouse Jones
legal requirement for all operator licence holders, and the test is intended to demonstrate that an operator has sufficient financial resources to operate and main - tain its fleet safely and lawfully. The financial standing requirements are: • Standard licences ( national and international ): Required for heavy goods vehicles that weigh more • Standard light goods vehicle licences : Required for vans, including any trailer, with a maximum permit - ted weight greater than 2.5 but no more than 3.5 tonnes: (a) First vehicle: GBP1,600 (b) Each vehicle thereafter: GBP800 The same criteria apply for restricted licences (opera - tors carrying only their own goods): • First vehicle: GBP3,100 • Each vehicle thereafter: GBP1,700 All figures are exclusive of VAT. Structural Reform for Local Bus Services The bus and coach sector has also not been immune from recent economic and political pressures, with the market undergoing one of the biggest structural changes in decades as many local authorities move from a traditional deregulated commercial model towards greater control and influence over networks, fares and passenger outcomes through franchising and Enhanced Partnerships. Greater Manchester’s Bee Network is a recent example of the franchising model outside of London, with other mayoral authori- ties now progressing franchising assessments and implementation plans, such as Liverpool and West Yorkshire. than 3.5 tonnes and PSVs: (a) First vehicle: GBP8,000 (b) Each vehicle thereafter: GBP4,500 A middle ground, where franchising is not an option, is the Enhanced Partnership model whereby the private operator model is retained but a formal agreement is established between the local transport authority and bus operators. The rationale is to promote a more co- ordinated approach with better timetables, integrated ticketing, enhanced service standards and reliability
without the cost and complexity of the local authority taking full network control. How does this impact the operator? Whilst a period of structural reform is challenging for any sector, bus operators need to think creatively about how to maximise their offering and become stronger in the areas of partnership working, data sharing, performance reporting and how to demon - strate the adding of value to the passenger journey. Furthermore, the Public Service Vehicles Accessibil - ity Regulations 2000 (PSVAR) and the Public Ser - vice Vehicles Accessible Information Regulations 2023 (PSVAIR), which are UK-wide legal frameworks designed to ensure disabled passengers can travel on public buses and coaches independently, safely and with dignity, have added a further layer of com - pliance for operators. There is now increased regu - latory enforcement by the Driver and Vehicle Stand - ards Agency, and a growing number of civil claims are being brought by individuals and representative groups. The growing appetite of passengers to cite complaints of non-compliance – whether that be in relation to a vehicle not being technically compliant or because there was an absence of audio announce - ments or visual displays – means that operators can soon find themselves at a hearing in front of the Traffic Commissioners, with possible serious consequences and reputational damage. Emerging Industry Challenges Decarbonisation The need to decarbonise is well understood; however, the sector – and particularly SME operators, which make up a vast majority of the total – has still not been able to identify the clear path for its own fleets. The electrification option works for most bus operations but is far less attractive for many coach businesses, with the capital and infrastructure costs (even if the local grid can handle the change) being prohibitive for SMEs. The same issue faces the logistics sector. Some urban and even motorway logistics operations can see a way forward with electric vehicles for large multinational companies, which have the resources to pay for the infrastructure. But for heavier on/off road work – including bulk quarried material, animal feeds or waste-carrying vehicles – operators have no clear
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