Council services and jobs could be at risk because of a shortfall in funding for the national concessionary bus fare scheme, the Local Government Association has warned.
An LGA survey revealed that 10% of councils were facing a shortfall of more than £1M, despite the Government insisting before the launch 12 months ago that the scheme would be fully funded.
It warned that the impact of the shortfall on some council budgets threatened other services. Exeter City Council’s funding gap of £1.3M equates to a 30% increase in council tax, and Preston City Council’s is a 16% rise.
A recent survey by the Liberal Democrats revealed the funding shortfall for Bournemouth exceeded £4M. Cllr David Sparks, chair of the LGA’s transport and regeneration board, said: ‘Free bus travel for pensioners was not supposed to cost the council taxpayer a penny. It would be a tragedy if this scheme, which was introduced with the very best intentions, resulted in councils having to slash other vital services or cut jobs because central government funding has been inadequate.’
The Department for Transport’s clarification of which bus services are not eligible for free travel (Surveyor, 2 April 2009), such as tourist and long-distance services, ‘is helpful but unlikely to significantly reduce councils’ shortfalls,’ the LGA said.
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