Deregulating the Buses

On the 26th October 2025, it will have been 39 years since the deregulation of public transport buses in Great Britain was introduced by the tory government.

Deregulation

On the 26th of October 1986 Margaret Thatcher’s government deregulated the buses, a policy that changed the way Britain moved, quite literally. Before that, most local bus services outside London were run by publicly owned companies, their routes and fares set by local councils. Deregulation tore up that model. It meant that for the first time in decades, almost anyone could run a bus service, on any route, charging whatever fare they liked. It was argued that deregulation would drive down prices, improve efficiency, and give passengers more choice.

Deregulation only applied to Great Britain, not the whole of the UK. Northern Ireland is outside the scope of the 1985 Act. Its bus services remains regulated and publicly run by Translink (Ulsterbus), a publicly owned company.

The Free For All

At first passengers were enjoying the cheaper fares, sometimes even free travel, while the established and newly formed bus companies fought over the lucrative routes.

And there was a lot of fighting. I remember watching two drivers on the Paisley High Street punching lumps out of each other, because one bus had cut the other bus off to pick up the passengers.

Although the newly recruited drivers must have a PSV (Public Service Vehicle) licence, some of them forgot that the safety of passengers came first and they drove their minibuses like madmen.

Manchester preparing for Deregulation

Museum of Transport Greater Manchester This poster was displayed in the Transport Museum of Greater Manchester.

The Aftermath

Once all the dust had settled, it is now apparent that the bus companies will generally only run routes that are profitable, although most companies do provide a limited service in some routes. The local authorities and the bus companies do communicate and sometimes funding is available to keep unprofitable routes running, particularly in rural areas.

But nearly four decades on, the legacy of deregulation is still visible. The Britain’s buses remain a patchwork of private operators, inconsistent fares, and variable service quality. The dream of a free market on wheels never quite matched the reality on the ground. For many, the story of bus deregulation is not just a tale of policy and economics, but a memory of confusion at the bus stop, of timetables that never quite worked and a public service that has grown worse in some rural areas.

London on the other hand, has kept its regulated system and continues to run an integrated network, with the right to run the services contracted to private companies on a tendered basis.

Video by RMTransit

Note: Deregulation only applies to Great Britain, not the UK.

Sources

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