Transport Act 1985

88 Expenditure on public passenger transport services. E+W

(1) Any power conferred on any authority responsible for expenditure on public passenger transport services to enter into agreements providing for service subsidies (however framed, and whether arising under this Act or under any other enactment) shall be subject to sections 89 to 92 of this Act.

(2) It shall be the duty—

(a) of all such authorities, in exercising and performing their functions with respect to securing the provision of public passenger transport services; and

[F1 (b) of all—

(i) local authorities in England and Wales, or,

(ii) education authorities in Scotland or local authorities exercising social work functions in Scotland,

in relation to any expenditure on transport for the purposes of or in connection with the exercise and performance of any of the functions set out in subsection (2A);]

to co-operate with one another so as to secure, in the interests of the ratepayers of their areas, the best value for money from their expenditure on public passenger transport, taken as a whole.

[F2 (2A) The functions referred to in subsection (2)(b) are—

(a) in relation to local authorities in England and Wales, their education functions (as defined in section 579(1) of the Education Act 1996) and their social services functions;

(b) in relation to Scotland, their functions as education authorities and their social work functions.]

[F3 (3) In subsection (2)(b) “local authority” means—

(a) in relation to England and Wales, a county council, a metropolitan district council, a non-metropolitan district council for an area for which there is no county council, a county borough council, a London borough council, and the Common Council of the City of London (in their capacity as a local authority);] and

(b) in relation to Scotland, an authority who are a local authority for the purposes of the M1 Social Work (Scotland) Act 1968.

(4) It shall be the duty of all authorities mentioned in subsection (2) above to afford to one another such information as may be reasonably required for the purpose of the co-operation required of them under that subsection.

(5) Where, as a result of any such co-operation, any such authority—

(a) incur expenditure which they would not otherwise have incurred; or

(b) receive less revenue than they would otherwise have done;

that authority may, by notice to the other authority or authorities concerned, require that other authority or (as the case may be) those other authorities to reimburse the amount of that expenditure or of that reduction in revenue.

(6) If—

(a) any amount in respect of which, in accordance with a notice under subsection (5) above, any such authority or authorities are required to reimburse another such authority; or

(b) where two or more such authorities are required by any such notice to reimburse another such authority, the share of that amount payable by each authority concerned;

is not determined by agreement between both or all the authorities concerned within six months of the receipt of the notice or such longer period as may be agreed between them, that amount and (where paragraph (b) above applies) the share payable by each authority concerned shall be determined by an arbitrator or, in Scotland, by an arbiter.

(7) Any such arbitrator or (as the case may be) arbiter shall be appointed either by agreement between the authorities concerned or, in default of such agreement, by the President of the Chartered Institute of Public Finance and Accountancy.

(8) References in this Part of this Act to authorities responsible for expenditure on public passenger transport services are references to—

(a) Passenger Transport Executives;

(b) non-metropolitan county and district councils in England and Wales; and

(c) F4 . . . councils in Scotland;

and in sections 89 to 92 of this Act include references to [F5 Transport for London in relation to any exercise of its power under section 156(2) or (3) (general powers) of the Greater London Authority Act 1999] which by virtue of section 65(3) of this Act is subject to those sections.

Extent Information

E1 This version of this provision extends to England and Wales only. A separate version has been created for Scotland only.

Textual Amendments

F1 S. 88(2)(b) substituted (5.5.2010) by The Local Education Authorities and Children's Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), art. 1, Sch. 2 para. 34(3)(a)

F2 S. 88(2A) inserted (5.5.2010) by The Local Education Authorities and Children's Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), art. 1, Sch. 2 para. 34(3)(b)

F3 Words in s. 88(3) substituted (5.5.2010) by The Local Education Authorities and Children's Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), art. 1, Sch. 2 para. 34(3)(c)

F4 Words in s. 88(8)(c) repealed (S.) (1.4.1996) by S.I. 1996/974, art. 2(2), Sch. 2

F5 Words in s. 88 substituted (15.7.2003) by The Transport for London (Consequential Provisions) Order 2003 (S.I. 2003/1615), art. 2, Sch. 1 para. 12(3)

Modifications etc. (not altering text)

C12 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)

C14 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)

C15 S. 88(1) excluded (E.W.) (26.10.2001 for E. and otherwise prosp.) by 2000 c. 38, ss. 124(6), 275; S.I. 2001/3342, art. 2, Sch.

S. 88(1) excluded (S.) (1.7.2001) by 2001 asp 2, s. 13(9) (with s. 66); S.S.I. 2001/132, art. 2(3), Sch. Pt. I

C16 S. 88(1) excluded by 2000 c. 38, s. 123A(8) (as inserted (E.W.) (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by Bus Services Act 2017 (c. 21), ss. 4, 26(3))

Marginal Citations

M1 1968 c. 49.

88 Expenditure on public passenger transport services. S

(1) Any power conferred on any authority responsible for expenditure on public passenger transport services to enter into agreements providing for service subsidies (however framed, and whether arising under this Act or under any other enactment) shall be subject to [F6 section] 92 of this Act.

(2) It shall be the duty—

(a) of all such authorities, in exercising and performing their functions with respect to securing the provision of public passenger transport services; and

[F1 (b) of all—

(i) local authorities in England and Wales, or,

(ii) education authorities in Scotland or local authorities exercising social work functions in Scotland,

in relation to any expenditure on transport for the purposes of or in connection with the exercise and performance of any of the functions set out in subsection (2A);]

to co-operate with one another so as to secure, in the interests of the ratepayers of their areas, the best value for money from their expenditure on public passenger transport, taken as a whole.

[F2 (2A) The functions referred to in subsection (2)(b) are—

(a) in relation to local authorities in England and Wales, their education functions (as defined in section 579(1) of the Education Act 1996) and their social services functions;

(b) in relation to Scotland, their functions as education authorities and their social work functions.]

[F3 (3) In subsection (2)(b) “local authority” means—

(a) in relation to England and Wales, a county council, a metropolitan district council, a non-metropolitan district council for an area for which there is no county council, a county borough council, a London borough council, and the Common Council of the City of London (in their capacity as a local authority);] and

(b) in relation to Scotland, an authority who are a local authority for the purposes of the M1 Social Work (Scotland) Act 1968.

(4) It shall be the duty of all authorities mentioned in subsection (2) above to afford to one another such information as may be reasonably required for the purpose of the co-operation required of them under that subsection.

(5) Where, as a result of any such co-operation, any such authority—

(a) incur expenditure which they would not otherwise have incurred; or

(b) receive less revenue than they would otherwise have done;

that authority may, by notice to the other authority or authorities concerned, require that other authority or (as the case may be) those other authorities to reimburse the amount of that expenditure or of that reduction in revenue.

(6) If—

(a) any amount in respect of which, in accordance with a notice under subsection (5) above, any such authority or authorities are required to reimburse another such authority; or

(b) where two or more such authorities are required by any such notice to reimburse another such authority, the share of that amount payable by each authority concerned;

is not determined by agreement between both or all the authorities concerned within six months of the receipt of the notice or such longer period as may be agreed between them, that amount and (where paragraph (b) above applies) the share payable by each authority concerned shall be determined by an arbitrator or, in Scotland, by an arbiter.

(7) Any such arbitrator or (as the case may be) arbiter shall be appointed either by agreement between the authorities concerned or, in default of such agreement, by the President of the Chartered Institute of Public Finance and Accountancy.

(8) References in this Part of this Act to authorities responsible for expenditure on public passenger transport services are references to—

(a) Passenger Transport Executives;

(b) non-metropolitan county and district councils in England and Wales; and

(c) F4 . . . councils in Scotland;

and in sections 89 to 92 of this Act include references to [F5 Transport for London in relation to any exercise of its power under section 156(2) or (3) (general powers) of the Greater London Authority Act 1999] which by virtue of section 65(3) of this Act is subject to those sections.

Extent Information

E2 This version of this provision extends to Scotland only. A separate version has been created for England and Wales only

Textual Amendments

F1 S. 88(2)(b) substituted (5.5.2010) by The Local Education Authorities and Children's Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), art. 1, Sch. 2 para. 34(3)(a)

F2 S. 88(2A) inserted (5.5.2010) by The Local Education Authorities and Children's Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), art. 1, Sch. 2 para. 34(3)(b)

F3 Words in s. 88(3) substituted (5.5.2010) by The Local Education Authorities and Children's Services Authorities (Integration of Functions) Order 2010 (S.I. 2010/1158), art. 1, Sch. 2 para. 34(3)(c)

F4 Words in s. 88(8)(c) repealed (S.) (1.4.1996) by S.I. 1996/974, art. 2(2), Sch. 2

F5 Words in s. 88 substituted (15.7.2003) by The Transport for London (Consequential Provisions) Order 2003 (S.I. 2003/1615), art. 2, Sch. 1 para. 12(3)

F6 Words in s. 88(1) substituted (S.) (1.4.2003) by Local Government in Scotland Act 2003 (asp 1), ss. 60(3)(b), 62(2); S.S.I. 2003/134, art. 2(1), Sch.

Modifications etc. (not altering text)

C14 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)

C15 S. 88(1) excluded (E.W.) (26.10.2001 for E. and otherwise prosp.) by 2000 c. 38, ss. 124(6), 275; S.I. 2001/3342, art. 2, Sch.

S. 88(1) excluded (S.) (1.7.2001) by 2001 asp 2, s. 13(9) (with s. 66); S.S.I. 2001/132, art. 2(3), Sch. Pt. I

C16 S. 88(1) excluded by 2000 c. 38, s. 123A(8) (as inserted (E.W.) (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by Bus Services Act 2017 (c. 21), ss. 4, 26(3))

C17 S. 88(1) excluded (S.) (4.12.2023) by 2001 asp 2, s. 13A(7) (as inserted by Transport (Scotland) Act 2019 (asp 17), ss. 38(2), 130(2) (with s. 126); S.S.I. 2023/250, sch.)

Marginal Citations

M1 1968 c. 49.