These Regulations make provision in respect of permits to provide bus services in areas where a bus franchising scheme is in place. A bus franchising scheme is a scheme under which certain local authorities in England decide which bus services they consider appropriate for their area. (At the moment only mayoral combined authorities can make a franchising scheme.) These bus services are provided under local service contracts and bus operators in the area can only provide the services in accordance with the local service contracts. However a franchising authority may also grant a service permit authorising the operation of a bus service in the area of the scheme, for example a service that crosses the boundary of the scheme area. The authority must grant a service permit if they are satisfied both that the service will benefit passengers in the area and will not have an adverse effect on other services that are provided under the franchising scheme. If they are not satisfied about these matters, they must not grant a service permit.
Link: The Franchising Schemes (Service Permits) (England) Regulations 2018
Source: Legislation .gov.uk
