Neoliberalism, consultants and the privatisation of public policy formulation: The case of Britain's rail industry

This paper identifies the importance of private advisers, particularly consultants, in promoting neoliberal prescriptions in public policy formulation in the recent history of British Government. It examines a consultant-dominated attempt to reform British Rail in the 1980s and the fundamental contribution of advisers to the flawed fragmentation and subsequent privatisation of the rail industry. Concepts drawn from Latour's Sociology of Translation are adopted to examine the attempts by Conservative Governments and their private advisory allies to establish networks of support for privatisation. In each of the episodes along the path to privatisation the paper examines attempts to undermine opposition and gain acceptance of the proposed changes with the production of knowledge claims by consultants, that is Latour's process of purification, followed by the consequences for the rail industry. The paper uses critical financial analysis to contrast the knowledge claims made by consultants with the outcomes of rail privatisation, which include extensive, ongoing transfers from taxpayers to private companies. It concludes by highlighting the dangers ensuing from dogmatic and excessive neoliberal public policy formulation.