Competition, regulation, and the privatisation of British Rail

The privatisation programme pursued by successive Conservative administations 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 \u27free\u27 market. However, despite this ideological objective, several large utility companies were privatised as regulated monopolies. Against this background, in a notable reorientation of privatisation policy, the Major administration attempted to secure a genuine movement towards market liberalisation when it divested British Rail (BR). An elaborate methodology was used to break BR\u27s monopoly and establish a competitive market for the provision of passenger rail services. The authors argue that, notwithstanding the complexity of the rail sell-off, competition has not materialised and BR\u27s monopoly has to all intents and purposes been reconstituted in the private sector