Local authorities could introduce their own local schemes, as well as permitting charities and community groups to provide services.
Stephen Joseph, director of Transport 2000, said: "We will also want to see more action to put the passenger at the centre of bus policy. While we welcome stronger powers for the traffic commissioners on punctuality, other passenger concerns like driver training, information, personal security and bus design are mentioned but no action is proposed."
John Whitelegg, a local Green Party councillor in Lancaster, and deputy chairman of the Local Government Association's transport and regeneration board, said:
"These proposals are a victory for common sense. The only way we can get more passengers on the buses is to give local people more say over services where they live. English councils outside London have been hamstrung by a system that has not allowed them to respond to local need. There is clear public support for giving local people more say over bus services. Councils want to change services people use for the better and create places where they can thrive."
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