Councils cutting back on bus subsidies, says LGA

28 Feb 14
Councils are cutting the support they provide to keep bus services running due to the growing cost of the concessionary fares scheme for elderly people, the Local Government Association has warned.

By Richard Johnstone | 3 March 2014

Councils are cutting the support they provide to keep bus services running due to the growing cost of the concessionary fares scheme for elderly people, the Local Government Association has warned.

Bus services

In England and Wales, local authorities provide subsidies for services that would not be economic for private bus firms to run – except in London, where services have not been deregulated.

However, the LGA said growing demand for the statutory concessionary fares scheme – providing free bus travel for older and disabled people during off-peak times – and lower Whitehall funding was reducing the support available to some key routes.

According to the LGA, government funding for concessionary fares has fallen by £261m, or 39%, since 2010. This is despite nearly one-third of all journeys being through concessions.

As a result, councils have to find the money themselves to reimburse bus operators, which in turn has reduced the funds available for other services.

Peter Box, LGA economy and transport board chair, said routes and services could no longer be protected by town halls unless the government used the Budget later this month to restore money to the concessionary programme.

‘The concessionary fares scheme provides a lifeline for our most vulnerable residents to go shopping, pick up medication, attend doctor appointments or socialise with friends. However, it is now under real threat,’ he said.

‘The way the concessionary travel scheme is funded by Whitehall has long been unfit for purpose and has not kept up with growing demand and cost. ‘Unless the government commits to fully funding concessionary fares, elderly and disabled people will be left stranded with a free bus pass in one hand but no local buses to travel on in the other.’

The LGA highlighted a few ‘reluctant’ cuts in support for bus services from among its council members.

These included Worcestershire County Council, which has consulted on a £3m cut in its subsidised bus budget across 97 routes, and Dorset County Council, which has ended all subsidies for evening and weekend services. Somerset County Council is planning to end subsidies on 12 of the 81 routes it supports, Cumbria County Council has examined reductions over as many as 70 routes and Oxfordshire County Council has also pledged to cut its £15m support budget.

 

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