Deregulation 1 - Bus Markets

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  • Local Bus Services
    • Deregulated under the Transport Act (1985)
    • Reasons for deregulation
      • Local bus services had been declining annually since the mid-1950s
      • Local authorities were obliged to provide ever-increasing subsidies
    • Predictions
      • Increase competition = lower fares, service provision + greater efficiency
      • New business opportunities
    • Reality
      • October 2006 report stated current arrangements could 'not be made to work'
      • Varying degrees of competition
      • poor quality of service, old vehicles, rude drivers etc.
      • Bristol - First Group 95% - Manchester + Oxford v. competitive


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