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A Brief Note On Subsidies Policy For Public Transport

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An analysis of subsidies policy for public transport in UK

“subsidy means money given as part of the cost of something, to help or encourge it to happen” (cambridge dictionary, 2015). In transport,..

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Organisation and Policy
Glaitser et al (2006) stated In Great Britain, Department for Transport responsible to include posts covering public transport, transport in London, roads and traffic national policy and aviation and shipping or logistic. They also suggest to public transport there is a 3 tier of government in charge of that are department for transport, sub-state goverment and local authorities. For rail services, the authority and accountability exist in Great Britain and sub-state government. While bus service, sub-state and local government authorities play the role. Subsidy given by the government through several ways, among others for the bus, a government subsidy to all buses operating with the distribution of three areas: rural areas, metropolitan and territories except london london. The subsidy for train through two ways are the operation and maintenance of infrastructure (White, 2009).

Why government do subsidy? goeverden et al (2006) stated subsidy is necessary for public transport. First, vulnerable groups such as low-income households, those without driver’s license, people with disabilities need to be motivated to avoid the problem of social exclusion. In this case the subsidy serves as a 'social function’. Second, limit the use of private
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