City cuts subsidies after ‘dramatic’ rise in bus service costs

23 May 2007

Transport bosses in Portsmouth are cutting back on council-subsidised bus services in a bid to avoid ‘massive’ rising costs.
All bus routes subsidised by Portsmouth City Council – amounting to 15% of all trips in the city – have been shortened or replaced by feeder services. Other routes will run less often. The cost of subsidising existing bus services, which stopped at ‘socially-necessary’ places, had increased to a point which was no longer viable, a council spokesman said.
The current annual cost to the council, which pays Stagecoach and First buses for the service, is £593,000. ‘If we kept the bus service working in its previous form, it would cost us £1M a year,’ he said. He would not be drawn on why prices had almost doubled, as the figures were provided through the tendering process.
Neither bus companies could be contacted by Surveyor. The shake-up follows negotiation with the bus companies and consultation with residents. ‘The cost of subsiding buses has gone up dramatically. We couldn’t keep services the same,’ environment and transport strategic director Julian Lomas said. Main shopping areas will still be served. The new service will take effect from 3 June.

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City cuts subsidies after ‘dramatic’ rise in bus service costs

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