Process when LTA wants to vary their franchising framework

At any point after a franchising framework has been made, the LTA that made the framework can vary it. The LTA will need to follow the formal process of varying their framework when they are seeking to amend what has been specified in the framework, such as the geographic area it relates to, or the description of the local services intended to be provided under the franchising agreement.

Where an LTA considers that a proposed variation would materially affect any part of the most recent assessment of the framework, they must prepare a new assessment, which will need to be audited. A consultation will also need to be undertaken in line with section 13G of the 2001 Act.

As part of that document, the LTA should clearly highlight the changes that they propose to make to what is specified in the existing framework, including setting out the potential benefits and impacts of such changes, and how they will deliver their envisaged outcomes.

Where variations are proposed, the LTA should seek to engage closely with local communities and operators to ensure that the impacts of the proposed changes are thoroughly explored.

If the LTA wants to proceed with the proposed variation, they must then provide the TC an application, which includes: -

  • The new assessment,
  • The report of the auditor on the new assessment,
  • A summary of the responses received to the consultation carried out under section 13G in respect of the new assessment, and any action (other than a modification under section 13H) that was taken to address the responses, and
  • A description and explanation of any modifications made to the framework as it is proposed to be varied under section 13H of the 2001 Act.

As before, the Chief Executive of the LTA should formally write to the TC asking them to convene a panel to consider the authority’s proposals to vary or revoke its franchising framework. The letter will need to include a copy of the LTA’s application for approval to vary or revoke their framework.

If the proposed variation or revocation does, in the LTA’s view, not require a new assessment, then the application must:

  • Set out the LTA’s reasons for wishing to vary or revoke the framework.
  • Explain how, and to what extent, the LTA considers the variation, or revocation will contribute to the implementation of their relevant general policies.
  • In the case of a proposal to vary the framework –
  • set out how it is proposed to vary the framework,
  • describe the expected effect that varying the framework will have on the matters set out in the assessment (or, if more than one, the most recent assessment) of the framework prepared under section 13E, and
  • explain the reasons the LTA do not consider it necessary to prepare a new assessment, as it is proposed to be varied, and
  • include any information that the LTA thinks will assist the panel in its deliberations to approve the proposed variation or revocation.

The approval panel, when considering the evidence in relation to the LTA’s proposal, must consider whether the authority has reached a reasonable conclusion in deciding to vary its framework under section 13O(4) of the 2001 Act.