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Local bus market study

Local bus market study

The UK Department for Transport engaged KPMG to provide insight into the local bus market in England outside of London. Our report identifies three key areas of interest: market trends, stakeholder objectives and alternative ways in which the government can influence market outcomes.


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Local bus market study
  • Local bus markets show considerable variation reflecting differences in socio-demographic factors, land use, the relative attractiveness of alternative modes of transport, wider transport policy and government expenditure, as well as the performance of local bus operators. 
  • Local authority and bus operator objectives are reasonably well aligned and centred on market growth but sometimes differences exist between stakeholders on the best way to achieve those objectives.
  • There is a range of policy levers available to government to influence demand and supply in local bus markets. In most instances the policy levers available in de-regulated markets enable local authorities and operators to meet their objectives.
  • Where there is pressure for market reform, there is a need to carefully consider the impact of interventions on passengers, operators and local authorities. Each local bus market is unique and each requires a tailored approach to help it deliver local objectives.

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