Deregulate: who dares?—the London experience

Abstract

The advantages and disadvantages of the post‐1984 form of bus service regulation in London are investigated and contrasted with the former near monopoly position of London Transport and with the experience of local bus service deregulation in the rest of the United Kingdom since 1986.

The formation of London Regional Transport in 1984 is placed in its political context. Progress with bus service tendering between 1984 and 1989 is then summarised. The effects of the new regulatory regime on London bus operations are outlined with regard to costs of operation, subsidy levels, operational reliability, image, innovation, the exertion of competitive pressure, developments in planning and coordination and involvement of the private sector.

Regulatory control by London Regional Transport is compared with the outcome of deregulation. Network and fare planning and coordination, investment, stability of service provision, the rate of innovation, progress with tendering and the relationship between LRT and London Buses are discussed. The case for and against deregulating also in London is presented.

The paper concludes with a discussion of the issues surrounding the future of bus service regulation in London and of possible developments from the present status quo under alternative governments in the 1990s.

Key words:

• London
• public transport
• buses
• regulation
• competition
• ownership