Buses are a key local service, but usage has been in decline since the 1950s. The Transport Act 1985 introduced deregulation, but that has failed to reverse that decline. The report examines the particular problems local authorities face in developing and implementing effective bus strategies. It is clear to the Committee that, for many areas, including all major metropolitan areas outside London, the current regime is not working. The Committee recommends more flexibility, and is particularly attracted by Quality Contracts. These would replace open competition with a licensed regime. Operators bid for exclusive rights to run bus services on a route or group of routes, on the basis of a local authority service specification. Independent Traffic Commissioners are another development that the Committee welcomes, and would like to see them have a higher profile and more resources and powers, especially to enforce Quality Contracts and penalise operators who do not meet their obligations. Others areas covered in the report are: securing socially necessary services outside the PTAs; congestion and bus priority; concessionary fares; and the image of the bus.