A new report calls for local transport authorities modelled on Transport for London (TfL) to be introduced across the country.

The Institute for Public Policy Research's (IPPR) Greasing the Wheels: Supporting and Improving Britain's Rail and Bus Services makes the recommendation in a study that identifies problems facing bus services outside of the capital.

It says deregulation of bus transport has not been a success due to dwindling passenger numbers and fares rising at a faster rate than inflation.

Liberalising the market has not led to it becoming more competitive, with 37 per cent of weekly services outside London facing no effective head-to-head competition and only one per cent of weekly services facing effective head-to-head competition over all or most of their route.

In order to improve bus services, the IPPR suggests devolving more powers to local bodies to shape markets, replicating the TfL model in other cities, and integrating transport spending and services by health and education providers.