The debate about the appropriate level of ‘bus subsidy’ began well before New Labour took office in 1997 and looks like it will out-last the government itself. The recent ministerial announcement on BSOG (Bus Service Operators’ Grant) ended some of the uncertainty, but also leaves many issues hanging in the air. Whilst a great deal has changed in the bus world since Things Can Only Get Better, the fundamental laws of economics haven’t, so it might be useful to set out...
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