Localised operation of passenger services under the Railway Act.

The 1993 Railways Act is now being implemented in the United Kingdom. This paper argues the case for highly localised management (including so called microfranchising) of passenger services as a solution to the problem of (mainly rural) lines which carry a very high ratio of subsidy to operating income. It suggests ways in which such management could be more responsive to the demands of local populations and users to improve financial performance, both in the shorter and longer term.