Competition, regulation, and the privatisation of British Rail

The privatisation programme pursued by successive Conservative administrati ons in the 1979-97 period was based on neoliberal values, and was aimed at the reduction of public sector involvement in industry by the promotion of a competitive 'free' market. However, despite this ideological objective, s everal large utility companies were privatised as regulated monopolies. Aga inst this background, in a notable reorientation of privatisation policy, t he Major administration attempted to secure a genuine movement towards mark et liberalisation when it divested British Rail (BR). An elaborate methodol ogy was used to break BR's monopoly and establish a competitive market for the provision of passenger rail services. The authors argue that, notwithst anding the complexity of the rail sell-off, competition has not materialise d and BR's monopoly has to all intents and purposes been reconstituted in t he private sector.