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Nearly 40 years ago the
Department of Transport (DfT)
under a Tory government
produced a White Paper to
sell the privatisation of the bus
industry to the public but a
recent (DfT) report into the
industry only underlined what
a disaster it has been.
The 1984 Buses White
Paper claimed, with little
evidence, that “competition
provides the opportunity for
lower fares, new services,
more passengers”.
It also claimed that “a free
market encourages a quicker
response to what the
customers want than a
regulated system ever could”.
It made the bold assertion
that new and better services
would be provided “without
the dead hand of restrictive
regulation”.
Yet the Department for
Transport produced anther
document called Bus Back
Better: National Bus Strategy
for England in March 2021
which completely refuted all
these claims and revealed the
disaster that privatisation had
wrought on the bus industry.
It found that under
competition “services became
unstable and confusing; the
quality of vehicles fell and
fares in many places rose
sharply”.
On claims that multiple
operators would provide more
services it found: “Many
communities have lost their
daily bus services altogether.
Others have services for only a
few hours a day”.
On claims that privatisation
would keep down costs it
found that “average bus fares
have risen by 403 per cent
since 1987”.
On claims that the free
market would respond to what
customers wanted it found
that “services can be
confusing, split between
different companies who do
not accept each other’s tickets
or, in some cases,
acknowledge each other’s
existence”.
On deregulation: “The
legacy of the 1980s ‘bus wars’
is overprovision, with dozens
of buses per hour, including
with duplicate competing
services which do not accept
each other’s tickets. This is
wasteful, polluting and can
paradoxically make services
slower and less attractive”.
On removing subsidies:
“Few services could now
survive without emergency
state support. If we are not to
abandon entire communities,
services cannot be planned
purely on a commercial basis”.
Bus privatisation has also
created what are effectively
bus monopolies rather than
increase competition. When
deregulation started there
were lots of new entrants to
the local bus market. However,
throughout the 1990s
acquisitions created a few big
operators and by 2010, the
big five operators, Arriva, First,
Go-Ahead, National Express,
and Stagecoach, controlled 70
HOW NOT TO RUN A
BUS SERVICE
The Tory government continues to champion
bus privatisation despite a mountain of evidence
that it doesn’t work
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