(01 Jul 2015, 8:02 am)Text wrote You could argue that GNE already do operate in such areas .... 688 Hexham - Allenheads for example.

The Hexham to Allenheads is a legacy route that was operated by United Automobile Services way back when I was a youngster in the 1940s. 
There was a United outstation at Allenheads.

There were two routes IIRC, one operating to Allendale via Haydon Bridge (37?) and the other (38?) direct from Hexham.

The Haydon Bridge/Allendale route was established by Robert Emmerson in the late 1920s (it ran to Newcastle) - leading to closure of the passenger railway services to Allendale in 1930. The goods only line closed in 1950. Emmerson was a subsidiary of United

United morphed into Arriva NorthEast via Northumbria Motor Services (and British Bus) and then Hexham-based operations were taken over by GoNorthEast.

So far I have not seen evidence of Snaiths losing their operating licence (other than withdrawal of schools by Northumberland County Council and North Tyneside Council).
The situation WRT North Tyne scheduled services (which are, presumably, subsidised by NCC) could reduce Snaiths to a private hire operator (though, even that would be subject to the Traffic Commissioners decision).

Opportunity for someone to establish a business using Snaith's vehicles, depots and drivers . . .