The Government’s flagship concessionary bus fare scheme has left councils millions of pounds out of pocket, according to new research.
A survey of 70 local authorities across the country has revealed a shortfall of £40M so far, because the Government has insufficiently funded free bus travel for the over-60s.
At the same time, some councils have actually profited from the scheme due to the funding formula. The Liberal Democrat poll found coastal areas, which attract a high number of tourists, are expecting the biggest shortfall. Bournemouth is predicting a funding shortfall of £4.5M for 2008/09, the Isle of Wight £3.7M, and Torbay £3.2M.
In contrast, South Derbyshire District Council and High Peak Borough Council are expecting surpluses of £570,000 and £160,000 respectively.
Norman Baker, Liberal Democrat shadow transport secretary, said the Government had turned a popular scheme for older people into an ‘implementation disaster’.
He added: ‘First the choice of local authority boundaries led to confusion and chaos at the borders, and now poor funding is leaving local taxpayers picking up the bill.’
Liberal Democrat policy adviser, Alice Douglas, said more money was needed to properly fund the scheme, but conceded the Lib Dems did not have a conclusive solution.
‘We haven’t proposed a whole new way of funding the scheme but have suggested that the Government should look at options such as reassessing cost to individual councils at the end of the year, so that councils are reimbursed for actual cost rather than estimates,’ she told Surveyor. The concessionary bus fare scheme, which allows free bus travel for over-60s anywhere in the country, was introduced in April 2008.
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