The Bus Franchising Assessment (Approved Persons) (England) Regulations 2026

Published: Tue 3rd Nov 26

Defined the professional qualifications required for individuals to independently audit and report on proposed bus franchising schemes in England.

These Regulations define the categories of individuals and entities authorized to act as 'approved persons' for auditing bus franchising assessments in England.

Under the Transport Act 2000, local transport authorities must obtain an independent report from an approved person before establishing or varying a bus franchising scheme.

The regulations limit this role to chartered accountants from specified professional bodies, qualified local auditors, and senior transport professionals with experience in financial appraisal and strategic project management.

Arguments For

The legislation states that specifying approved persons is necessary to fulfill the requirements of section 123D and Schedule 9A of the Transport Act 2000, which mandate an independent report before a franchising scheme can proceed.
Proponents may argue that the criteria for 'senior transport professionals' ensure that assessments are reviewed by individuals with specific expertise in strategic leadership, financial appraisal, and transport policy delivery.
The document implies that by including recognized professional bodies—such as the ICAEW and ACCA—the regulatory framework leverages existing professional standards and disciplinary structures for oversight.

Arguments Against

Legal scholars might question whether the definition of 'senior transport professional' is sufficiently precise, as terms like 'strategic leadership' or 'oversight' are broad and may lead to inconsistent applications across different franchising authorities.
Affected parties, such as smaller transport consultancies, might argue that the emphasis on specific professional bodies or high-level leadership experience could limit the pool of available auditors, potentially increasing the cost of producing assessment reports.
Critics could point out that the regulations do not specify the exact methodology these approved persons must use, leaving an ambiguity in how 'independence' is verified beyond the person's professional credentials.

Citation, commencement, extent and application

1.—(1) These Regulations may be cited as the Bus Franchising Assessment (Approved Persons) (England) Regulations 2026.

(2) These Regulations come into force on 24th November 2026.
(3) These Regulations extend to England and Wales.
(4) These Regulations apply in relation to England only.

This section establishes the official name of the statutory instrument and sets the date it becomes legally effective as 24 November 2026.

While the legal reach of the document extends to both England and Wales, its practical application is restricted to transport authorities and schemes within England.

Approved person

2.—(1) A person is specified as an approved person for the purposes of section 123D of and paragraph 4(7) of Schedule 9A to the Transport Act 2000 if that person is either—

(a) an accountant, auditor or senior transport professional, or
(b) the employer of a person mentioned in sub-paragraph (a).

(2) In this regulation—

"accountant" means a member of—

(a) the Association of Chartered Certified Accountants,
(b) the Institute of Chartered Accountants of Scotland,
(c) the Institute of Chartered Accountants in England and Wales,
(d) the Chartered Institute of Public Finance and Accountancy, or
(e) the Chartered Institute of Management Accountants;

"auditor" means a person eligible for appointment as a local auditor by virtue of Chapter 2 of Part 42 of the Companies Act 2006 as modified by Schedule 5 to the Local Audit and Accountability Act 2014;

"senior transport professional" means a person who—

(a) holds or has held a position with responsibility for the strategic leadership or oversight of the design, delivery or analysis of transport policy, projects or systems,
(b) has experience in the management of multi-disciplinary or multi-stakeholder projects relating to the transport sector, and
(c) in the course of a business or profession, or in the exercise of a function of a public nature, is or has been responsible for—
(i) the preparation of reports which set out findings and recommendations, and
(ii) the financial appraisal of transport policy, projects or systems.

This section identifies who is legally permitted to produce the mandatory independent reports required for bus franchising assessments.

It authorizes members of five specific accounting institutes, individuals qualified as local auditors under the Companies Act 2006, and experienced transport professionals who meet specific criteria regarding financial appraisal and strategic leadership.

It also allows the employers of these qualified individuals to be designated as approved persons.

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