Lack of competition on the buses
Wednesday 21 December 2011
The bus industry is to face its most radical shake-up since privatisation 25 years ago, after the Competition Commission found deregulation had left passengers suffering from poor services and higher fares.
The watchdog reported bus operators "face little or no competition" in some areas of the country. Its inquiry did not take in London, where the market is regulated.
However, throughout the rest of the UK there are about 1,250 bus companies but the five largest — German-owned Arriva, and its listed rivals FirstGroup, Go-Ahead, National Express and Stagecoach — carry 70 per cent of passengers.
Jeremy Peat, who is chairing the commission's investigation, said: "In too many areas of the country, competition has stagnated and the incumbent providers know that they face little in the way of serious challenge. The incentive to increase services, innovate and even lower fares is absent."
The watchdog's proposals to open up the market include boosting the number of multi-operator ticket schemes and banning "over-bussing", where operators increase frequency to knock out competitors.
- 1 'Kidnapped boy may have been abused and murdered by VIP paedophile ring,' say police
- 3 Girl, 7, gets Tesco to remove 'stupid' sign suggesting superheroes are 'for boys'
- 4 This letter from a reader explains why women can’t play football
Black Friday 2014: Opening times for Asda, John Lewis, GAME, PC World and Argos
Miss Honduras Maria Jose Alvarado's stylist Luis Alfredo Garcia is found stabbed to death
Dr Lam Hoe Yeoh: Voyeur doctor jailed for eight years after using network of hidden cameras to film patients, colleagues and friends on the toilet
'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
Scientists predict green energy revolution after incredible new graphene discoveries
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Exclusive: UK approved £7m Israeli arms sales in six months before Gaza conflict
iJobs Money & Business
£6000 - £60000 per annum + Bonus and Benefits: Ampersand Consulting LLP: UI De...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
Negotiable: h2 Recruit Ltd: A rapidly expanding, global Software/ SaaS Vendor ...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...