‘Chaos looming’ over free bus travel plan

09 July 2007

Councils are urging the Government to hammer out details of the revised concessionary bus fare system to prevent the scheme descending into ‘chaos and confusion’.
At present, free bus travel exists within local authority areas, but from next April, a uniform system for concessionary fares will be implemented across the country. However, despite promises of extra funding, details about how the scheme would work in practice and how councils might be reimbursed for the ‘huge cost’ are yet to be resolved by the Department for Transport, the Local Government Association warned.
The LGA last week called for urgent clarification on issues such as whether a smartcard system would be used nationally and what the costs of buying new technology could be. It also warned that the current funding system failed to reflect actual costs incurred by councils on the ground, despite an extra £212M being put into the scheme by the Government.
The current funding system has led to shortfalls for a number of councils, with Tyne and Wear facing an annual deficit of £5M, and Teignbridge District Council in Devon £1.3M – equivalent to one-quarter of its non-pay budget. A number of other authorities, including Suffolk Coastal Council and the Borough of Poole Council, have expressed similar fears over a funding crisis next April.
Cllr David Sparks, chair of the LGA regeneration and transport board, said: ‘We still don’t know enough about how this scheme is going to operate in practice. This is a prime example of good decisions by ministers getting bogged down in bureaucracy. It beggars belief that agreement on how to make this scheme happen is yet to be reached.’ However, a spokesperson for the Department for Transport said it was in detailed discussions with local authorities and the LGA about both funding arrangements and the type of pass to be used.
‘The timetable for decisions on the new pass is on track. Our public consultation on this issue closes later this month. A decision before that would be premature,’ the spokesperson said. ‘We have made clear that we are committed to funding any new burdens the national concession imposes on local government.’

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‘Chaos looming’ over free bus travel plan

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