Long title | An Act to amend the law relating to road passenger transport; to make provision for the transfer of the operations of the National Bus Company to the private sector; to provide for the reorganisation of passenger transport in the public sector; to provide for local and central government financial support for certain passenger transport services and travel concessions; to make further provision with respect to the powers of London Regional Transport; to make new provision with respect to the constitution, powers and proceedings of the Transport Tribunal; to make provision with respect to grants payable under section 92 of the Finance Act 1965; to establish a Disabled Persons Transport Advisory Committee; and for connected purposes. |
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Citation | 1985 c. 67 |
Introduced by | Nicholas Ridley MP |
Territorial extent | England, Wales & Scotland |
Dates | |
Royal assent | 30 October 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Text of statute as originally enacted | |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.
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 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]
Part I of the Act removed, excluding London, the need for the required road service licence throughout the United Kingdom. Part I replaced service licensing with a system of registration. [1] This caused licensing authorities losing many of their powers and made it possible for operators to register new routes. For an operator to register a new route the licensed operator had to supply the traffic commissioner with information of the proposed route, the timeline for the trip, stopping arrangements, the vehicles to be used, and the terminal points. In accordance with the Act the traffic commissioner had to receive the registration at least 42 days prior to when the route is to be run. It was mandatory for the notice to go through the 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]
Privatisation proposals were put forth to change the structure of the bus industry. [1] The bus industry was managed mainly by public sector companies in the years prior to 1985. 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]
School minibuses which are used to transport people are covered by a Section 19 permit scheme. [5] The reference to "Section 19" relates to the Transport Act 1985. [6]
The Act changed how bus services were run in the United Kingdom. The Act introduced the largest change in the framework of bus services in over five decades and it replaced the prior publicly owned and highly regulated bus service with a largely competitive commercial system. [7] Additionally, the removal of subsidies made it so different firms had to bid on the right to operate with subsidized services. [4]
The privatisation of British Rail was the process by which ownership and operation of the railways of Great Britain passed from government control into private hands. Begun in 1994, the process was largely completed by 1997. The deregulation of the industry was in part motivated by the enactment of EU Directive 91/440 in 1991, which aimed to create a more efficient railway network by creating greater competition.
Buses have been used as a mode of public transport in London since 1829, when George Shillibeer started operating a horse-drawn omnibus service from Paddington to the City of London. In the decades since their introduction, the red London bus has become a symbol of the city. In 2019, buses accounted for 11 per cent of trips taken in the city.
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Eastern Scottish Omnibuses Ltd. was a bus and coach operator based in Edinburgh, Scotland and a subsidiary of the Scottish Bus Group. Eastern Scottish was formed in June 1985 from the main part of Scottish Omnibuses Ltd., which had itself traded as 'Eastern Scottish' since the 1960s. Following privatisation in 1990 the company traded as 'SMT' reviving the original name of the company. It operated until 1994, when it became part of GRT Bus Group plc.
Kelvin Scottish Omnibuses Ltd was a bus operating subsidiary of the Scottish Transport Group based in Bishopbriggs, Strathclyde, Scotland. It was formed in March 1985 from parts of Walter Alexander & Sons (Midland) Ltd and Central SMT, initially with six depots and a varied fleet of 381 vehicles.
Bus deregulation in Great Britain involved the abolition of Road Service Licensing for bus services outside of Greater London. It began in 1980 with long-distance bus services and was extended to local bus services in 1986 under the Transport Act 1985. The abolition of Road Service Licensing removed the public sector's role in fare-setting, routes, and bus frequencies and returned those powers to bus operators.
Railway nationalisation is the act of taking rail transport assets into public ownership. Several countries have at different times nationalised part or all of their railway system.
Boro'line Maidstone, previously Maidstone Borough Council Transport was a municipal bus operator in Maidstone and the surrounding villages. Maidstone Borough Council Transport was formed in 1974 from Maidstone Corporation Transport following local government reorganisation. In 1986 Boro'line Maidstone was formed as an arm's length company of Maidstone council from the operations of Maidstone Borough Council Transport. The company had a brief London operation. Following financial difficulties, the London operation was sold to Kentish Bus, and after a period of administration, the assets of the Maidstone operation was sold to Maidstone & District in 1992.
South Yorkshire Transport (SYT) was a bus operator that provided services around South Yorkshire and outlying areas. The company was formed as an 'arms-length' successor of the South Yorkshire Passenger Transport Executive (SYPTE) in 1986, which was broken up as a result of the deregulation of bus services. South Yorkshire Transport operated buses in and around Doncaster, Rotherham and Sheffield with some services extending to Chesterfield, Leeds and Barnsley.
National Welsh Omnibus Services was a bus company which operated in south-east Wales and in the Forest of Dean area of Gloucestershire from 1978 to 1992. It used the trading name National Welsh and its Welsh equivalent Cymru Cenedlaethol.
The Passenger Transport Executive (PTE) bus operations were the bus operating divisions of the passenger transport executives in the United Kingdom. In 1986 they underwent a process of deregulation and privatisation, forming some of the largest private bus companies in the UK outside London, with all being sold to their employees or management. Despite their relative size and lucrative operating areas, none of the companies survived beyond the late 1990s, with all falling into the hands of the major bus groups, who had their origins in privatised regional subsidiaries of the former National Bus Company and the Scottish Bus Group.
Buses are the most widespread and most commonly used form of public transport in the United Kingdom. In Great Britain, bus transport is owned and governed by private sector companies, except in Greater Manchester with the Bee Network and Greater London. If a socially desirable service cannot be economically operated without a subsidy, then local councils can support bus companies to provide the service, often after an open competitive tendering exercise. In Northern Ireland, bus services are publicly owned, governed and delivered, as is the case in the Republic of Ireland.
The privatisation of London bus services was the process of the transfer of operation of buses in London from public bodies to private companies.
The privatization of transport refers to the process of shifting responsibility regarding the provision of public transport or service from the public to the private sector.
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British Coachways was a consortium of independent coach operating companies in the United Kingdom. Formed immediately after the deregulation of coach services in October 1980, it competed with the state-owned National Express and Scottish Bus Group on a range of long-distance routes. Initially composed of six members, it varied in size and composition over its two years of operation to include a range of ten different companies.
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