Deregulation day, 26th October 1986, marked the end, except in London, of quantity control of bus services in Great Britain. It also marked the beginning of a regime under which subsidies for bus services could normally be paid only to operators who had been awarded contracts on the basis of competitive tendering. This report deals in some detail with the effects of deregulation in West Midlands. Some of the main findings in the report are that there has been an increase in the number of new operators although many of these operators ran contract or express services before deregulation. At deregulation vehicle mileage decreased by 3 per cent. During the first two years of deregulation registered mileage decreased by a further 7.7 per cent overall with commercial mileage decreasing by 6.8 per cent and tendered mileage by 14.2 per cent. The cost to the PTE of providing socially necessary services has decreased. Extra costs have been incurred, but again not all as a result of deregulation. Multi-modal travelcards ceased following the major bus operator's decision not to participate in joint ticketing with other operators. Bus fares have risen in line with inflation. Bus patronage decreased by 10 per cent over the two years following deregulation. The facts as perceived by the Laboratory and the Passenger Transport Executive are presented in this Report without attempting to draw conclusions on the efficacy of the Act. (A)

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