Overall trends in the British local bus industry since deregulation in 1986 are described. While the outcome in Scotland is broadly comparable to that in the English shires and Wales in terms of the decline in passenger trips, and growth in bus-kilometres run, there is evidence of a substantially greater increase in average trip length. In comparison with the six Passenger Transport Executive systems in England, Strathclyde-which accounts for about half of all bus passengers in Scotland-exhibits a much lower rate of passenger decline. Reasons for these differences are examined. All but one major operator in Scotland are now in private ownership, but an initial phase of sale to management-employee buy-outs has been followed by rapid consolidation into larger groups, notably FirstGroup. Implications for competition are examined.