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Financial black hole to pay for free bus travel
Ref : 07/115 : Date : 03-12-2007
Adur Council is facing a financial black hole as it struggles to find the
money to pay for free bus travel for people aged 60 and over. The council
is urging people to write to Gordon Brown and ask him to fund this scheme
properly by reimbursing the council pound for pound what it costs.
The council is faced with a possible shortfall this year of £265,000, which is bad enough, but next year when the scheme changes and people can travel nationally using their bus pass costs could soar leaving a shortfall up to £400,000.
The government have pledged £200 million to fund this new scheme nationally, but it is nowhere near enough. A more realistic figure would be £500 million.
It costs Adur Council currently £992,000 to provide this service and this is set to increase to £1,127,000 next year. This one service costs more than any other, including refuse and recycling.
Adur Council is just one of hundreds of councils around the country facing this dilemma and says it will have to cut other services and increase council tax to the maximum level to pay for it.
The council is fully behind free bus travel across the country as it will benefit a lot of people, but feels the government should put it’s money where its mouth is and pay for it.
Council Leader, Neil Parkin said: "Join us and help us keep all the
services you value and get this service properly funded by writing to Gordon
Brown at 10 Downing Street, London, SW1A 2AA or e-mail him through his website
on www.number10.gov.uk, or to your MP
Tim Loughton."
"I think free bus travel is a great idea and the government did say they would fund it, but so far that just hasn’t happened."
One of the other issues to come from this is the threat to some bus routes. Bus companies are also feeling the pinch financially. The number 9 bus which services areas of Southwick is the latest casualty and will have its route shortened no longer running to Southwick. This is a real blow to the people who use this service to get to local hospitals both in Shoreham and Worthing.
Stagecoach’s commercial director Edward Hodgson said: "Stagecoach
is being underpaid by around £1.5million for concessionary fares in
West Sussex as we receive only 42 per cent on a full fare back from the councils
and this is having a direct affect on services such as the number 9. Earlier
this year we were forced to reduce a number of services in Worthing and we
are fearful that more cuts may prove necessary unless we are properly reimbursed
for concessionary travel."
"Our only route to get fair recompense is to take action against the district councils because it is they who have the legal duty to reimburse us. However, I have great sympathy with them as an inappropriate Government funding formula means that they have a genuine financial problem. We would support any application the Authorities might make to Government for a fairer funding regime."
Ends
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