We present the power spectrum analysis of clustering in the Durham/UKST Gal
axy Redshift Survey. The Survey covers 1450 square degrees and consists of
2501 galaxy redshifts. The galaxies are sampled at a rate of one in three d
own to a magnitude limit of b(J) similar to 17 from COSMOS scanned UK Schmi
dt Telescope plates. Our measurement of the power spectrum is robust for wa
venumbers in the range 0.04 h Mpc(-1) less than or equal to k less than or
equal to 0.6 h Mpc(-1). The slope of the power spectrum for k > 0.1 h Mpc(-
1) is close to k(-2). The fluctuations in the galaxy distribution can be ex
pressed as the rms variance in the number of galaxies in spheres of radius
8 h(-1) Mpc as sigma(8) = 1.01 +/- 0.17. We find remarkably good agreement
between the power spectrum measured for the Durham/UKST Survey and those ob
tained from other optical studies on scales up to lambda = 2 pi/k similar t
o 80 h(-1) Mpc. On scales larger than this we find good agreement with the
power measured from the Stromlo-APM Survey, but find more power than estima
ted from the Las Campanas Redshift Survey. The Durham/UKST Survey power spe
ctrum has a higher amplitude than the power spectrum of IRAS galaxies on la
rge scales, implying a relative bias between optically and infrared selecte
d samples of b(rel) = 1.3. We apply a simple model for the distortion of th
e pattern of clustering caused by the peculiar motions of galaxies to the A
PM Galaxy Survey power spectrum, which is free from such effects, and find
a shape and amplitude that are in very good agreement with the power spectr
um of the Durham/UKST Survey. This implies beta = Ohm(0.6)/b = 0.60 +/- 0.3
5, where b is the bias between fluctuations in the galaxy and mass distribu
tions, and also suggests a one-dimensional velocity dispersion of sigma = 3
20 +/- 140 km s(-1). We compare the Durham/UKST power spectrum with cold da
rk matter (CDM) models of structure formation, including the effects of non
linear growth of the density fluctuations and redshift-space distortions on
the theoretical power spectra. We find that for any choice of normalizatio
n, the standard CDM model has a shape that cannot be reconciled with the Du
rham/UKST Survey power spectrum, unless either unacceptably high values of
the one-dimensional velocity dispersion are adopted or the assumption that
bias is constant is invalid on scales greater than 20 h(-1) Mpc. Over the r
ange of wavenumbers for which we have a robust measurement of the power spe
ctrum, we find the best agreement is obtained for a critical-density CDM mo
del in which the shape of the power spectrum is modified.