The central change for transport is that Strategic Authorities will generally become the Local Transport Authority for their area. That moves strategic transport planning away from fragmented council-by-council arrangements towards a single regional framework, enabling regions to plan transport holistically and align it with housing, economic growth and infrastructure. This should strengthen cross-boundary delivery of bus priority, highway improvements and wider network integration.
The Act unlocks bus network powers across England as all combined authorities, whether mayoral or not, can now implement bus franchising if they decide, potentially accelerating the shift from deregulated local bus markets to authority-designed service models.
Impact on local authorities, bus and rail operators
For local authorities, this creates both opportunity and constraint. Authorities should benefit from clearer regional strategy, stronger coordination and new tools to deliver corridor-based schemes. But they will also need to align local decision-making with the Strategic Authority’s transport priorities and may see greater mayoral oversight over key roads and traffic measures.
For bus operators, the implications are immediate. More areas may move towards franchising, with routes, fares and service standards increasingly set by public authorities. That creates opportunities to compete for larger, longer-term contracts, but it also means less reliance on purely commercial route-setting and a greater need to engage early with consultation and procurement processes.
For rail operators, both public and private, the Act stops short of devolving heavy rail. National rail infrastructure and operations remain centrally managed. However, the legislation is designed to give advanced mayoral areas a stronger voice in regional rail planning and integration, particularly as wider rail reform develops. That points to closer working between devolved authorities, DfT and Network Rail on stations, service integration and investment priorities. The Act also introduces additional protection for certain TfL operational rail land disposals, reflecting a broader concern to safeguard essential transport assets.
Aligning transport and development
An important feature of the Act is the way transport powers sit alongside planning and development powers. Strategic Authorities’ transport role is intended to support wider spatial and economic strategies. Mayoral Strategic Authorities in particular can now employ the full London-style planning toolkit: calling in large planning applications, issuing Mayoral Development Orders to fast-track key projects, and levying a Mayoral Community Infrastructure Levy (MCIL) on new developments. These tools mirror the existing powers of the Mayor of London which were used to fund the Elizabeth Line. This will give Mayors the ability to align new developments with transport investment, for instance, the Mayor of a Strategic Authority could call in a major housing scheme and impose transport requirements (like funding a new tram stop) or apply MCIL to developers to raise capital for metro extensions or road upgrades.
Opportunities
The Act offers Strategic Authorities a chance to shape joined-up transport networks with stable funding but also places new duties on them to deliver regional plans and maintain effective governance (with new scrutiny committees). For bus and rail operators, it signals more coordinated but potentially more regulated markets: bus companies could see expansion of franchising or partnerships to improve services, and train operators can expect closer cooperation with city-regions on timetables and integration. For central bodies like DfT and Network Rail, devolution aims to free up Whitehall, as Strategic Authorities shoulder more local transport duties – but the centre still controls national systems, maintaining oversight of heavy rail and funding allocations, all while working to support local capacity-building.
When will these changes take effect?
Implementation will be phased. Some provisions, including restrictions on certain TfL land disposals, come into force shortly after Royal Assent, but many of the substantive transport powers will depend on commencement orders, regulations and local implementation steps over 2026–2028. For transport stakeholders, the message is clear: now is the time to prepare for a more devolved, more strategic and more interventionist transport landscape.
