UK application stuff

Question 1

examples of failed privatisation in the uk

Answer 1

1. Rail privatisation - Network rail
   - rail network privatised in 1993 , with rail track managing infrastructure
   - rail track criticised for poor maintenance and cost cutting, leading to safety failures like the Hatfield rail crash in 2000
2. Water privatisation in 1978
   Thames water has faced criticism for :
   - underinvestment in infrastructure, leading to leaks and sewage dumping
   - high debt levels and excessive executive bonuses
   - customer price u creases without corresponding service improvements
3. Energy privatisation in 1970s
   - aimed to boost competition and lower prices
   BUT
   - lack of competition as big companies dominated the market like british gas
   - high energy prices, where customers faced rising energy costs, especially after 21-22 energy crisis

Question 2

examples of successful privatisation in uk

Answer 2

1. British airways
   - before privatised, it was described as “bloody awful airways” due to inefficiency and poor service
   - after privatisation, there was improved customer service, reduced costs, and became one of the worlds leading airlines
   - increased competition led to better efficiency and expansion
2. BT
   - privatised in 1984
   - led to huge investment in telecommunications
   - encouraged competition from companies like Virgin media and Sky, leading to better services and lower prices for consumers
   - although bt remains a dominant player in the market
3. Rolls royce:
   - privatisation allowed for massive investment in R&D
   - created thousands of skilled jobs and boosted uk manufacturing

Question 3

examples of successful deregulation attempts UK

Answer 3

1. financial services (“big bang”) deregulation
   - this was where Thatcher deregulated financial markets, removing restrictive practices in Londons stock exchange
   - this boosted Londons status as a global financial hub
   - allowed more competition and led to the rise of global banks
2. Airline deregulation 1978
   - UK liberalised the airline industry, allowing private airlines to compete with BA
   - this increased competition and led to the rise of budget airlines like easyjet and ryanair
   - lowered prices, making travel more accessible
   - airlines improved cost structures and services

Question 4

unsuccessful deregulation uk

Answer 4

1.Bus deregulation (1985)
- the transport Act 1985 removed state control over bus services
- led to reduced services in rural areas, as companies focused on more profitable routes in cities(London)
- higher fares, as without regulations, some companies raised prices significantly
- monopolies like StageCoach and Arriva dominated local markets

2. Energy deregulation
   - the UK deregulated gas and electricity markets to increase competition
   - led to rising energy prices due to market manipulation and lack of regulation
   - company failures, as many energy providers went bankrupt
   - companies focused on profits rather than upgrading infrastructure
3. Rail deregulation
   - led to higher fares compared to other European countries
   - frequent delays, overcrowding, inefficiencies
   - lack of competition as most touted became regional monopolies