Transport Act 1985

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Transport Act 1985
Commencement
26 October 1986
Text of statute as originally enacted
Text of the Transport Act 1985 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

The Transport Act 1985 (c. 67) was an

act of Parliament in the United Kingdom. It introduced privatised and deregulated bus services throughout Great Britain
and came into effect in October 1986.

The act was created as a response to growing concern about the

environmental effect the private transportation was having and the public's objection to an increase in road construction.[1] The Act was introduced by Nicholas Ridley and it committed to reduce the amount the public paid for commercial objects. This was achieved by reducing the control governments had of bus systems and reducing the subsidies to bus companies. The Conservative government also believed the removal of subsidies and local government control would lead to an increase in competition between companies. The deregulation of buses applied throughout Great Britain, excluding bus services in Greater London, and was led by the Conservative government.[1][2]
Public transport remains under direct public control in Northern Ireland.

Deregulation and elimination of barriers

Proposal

In 1984 a proposal to deregulate local bus services was published in the white paper Buses and in more detailed consultation papers. Part I of the Act brought these proposals into effect.[1]

Deregulation, elimination of barriers, and the transfer to the private sector were some of the major changes the Act established.[3] Privatisation and bus deregulation came into effect on 26 October 1986.[1] Local authorities were required to transfer their municipally-owned bus services to separate companies. Although most of these companies have since been privatised, with the exception of Lothian Buses in Edinburgh; a few other municipal bus companies remain today. The Act also mandated that local governments publish statements of their own policies for bus services deemed socially vital that were not operated by commercial companies.[2]

London

London faced a different type of deregulation. The standard deregulation that applied to other cities in the United Kingdom was not applied to bus services in Greater London; instead, the Act brought about a system of franchised routes operated by private companies but managed by London Buses Ltd. This meant that, although the bus companies in London were privatised, London's government still retained the ability to regulate the companies.[4] At the time the Act was put into place, the London bus companies were governed by the London Regional Transport Act 1984.[1]

Transport Act 1985: Deregulation (Part I)

Part I of the Act

traffic commissioner for a licensed bus operator to operate. After approval, the operator was required to run the route according to the specifications provided in the registration.[1]

Deregulation also led to firms being able to charge any fares they wish, run routes, and freely enter and leave the market.[4] This was accomplished by reducing the amount of subsidies local governments could provide for services.[4]

Transport Act 1985: Privatisation (Part II)

Privatisation proposals were put forth to change the structure of the bus industry.

Privatisation was introduced by the Conservative government as a way to achieve better access to private capital and more committed management.[1] In order to achieve this goal, the Conservative government made it so local governments could only provide subsidies for services and prohibited subsidies that would promote low fares.[4]

Aftermath

The Act changed how bus services were run in the

publicly owned and highly regulated bus service with a largely competitive commercial system.[5] Additionally, the removal of subsidies made it so different firms had to bid on the right to operate with subsidized services.[4]

Other provisions

School minibuses which are used to transport people are covered by a Section 19 permit scheme.[6] The reference to "Section 19" relates to the Transport Act 1985.[7]

See also

References

  1. ^ a b c d e f g h i Poole, Fiona. "Buses". Research Paper 99/59.
  2. ^ a b Balcombe, RJ. "Effects of the Transport Act 1985 Outside Conurbations: A comparative study". Research Report 247.
  3. doi:10.1080/01441649608716948
    .
  4. ^ a b c d e Savage, Ian. "Deregulation and Privatization of Britain's Local Bus Industry". Journal of Regulatory Economics: 143–158.
  5. ^ Walmsley, D.A. "The Early Effects of the 1985 Transport Act in Tyne and Wear". Research Report 226.
  6. ^ Department for Education and Department for Transport, Driving school minibuses: advice for schools and local authorities, published 4 September 2013, accessed 15 November 2023
  7. ^ UK Legislation, Transport Act 1985: Section 19, accessed 15 November 2023
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