Road passenger transport and deregulation

The Transport Act 1985 has had a major impact on the provision of local transport through the deregulation and privatization of local bus services in Great Britain (outside London). This article reviews the subsequent changes which have taken place in the services provided, the performance of the bus industry, public expenditure and the role of public authorities. Although unit operating costs have fallen sharply, this is coupled with a fall in ridership and growth in bus‐kilometres run, leading to a poor financial performance of the industry. In particular, investment levels in new vehicles are very low. The implications of the deregulation proposals in London are discussed, together with current policy issues.