A relevant authority may not, in exercise of any of its powers, form a company for the purpose of providing a local service.

Subsection (1) applies whether the relevant authority is acting alone or with any other person.

In this section—

• “company” has the same meaning as in the Companies Acts (see sections 1(1) and 2(1) of the Companies Act 2006);

• “form a company” is to be construed in accordance with section 7 of the Companies Act 2006;

• “local service” has the same meaning as in the Transport Act 1985 (see section 2 of that Act);

• “Passenger Transport Executive”, in relation to an integrated transport area in England or a combined authority area, means the body which is the Executive in relation to that area for the purposes of Part 2 of the Transport Act 1968;

• “relevant authority” means—

  1. a

     a county council in England;

  2. b

     a district council in England;

  3. c

     a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009;

  4. ca

     F1a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023;

  5. d

     an Integrated Transport Authority for an integrated transport area in England;

  6. e

     a Passenger Transport Executive for—

     1. i

        an integrated transport area in England, or

     2. ii

        a combined authority area.