Cumbria County Council has proposed increasing the payments to bus operators which transport schoolchildren, vulnerable adults and other bus-users around the county.

The proposal, to be considered by cabinet next week, is to increase by 1.5% from 1 September the contract payments to bus operators which tendered for its contracts before 1 April 2008. This would reflect the soaring price of fuel, which some bus operators have warned is making their businesses unviable, and could force them to hand back their contracts.

The North Cumbria Operators’ Association (NCCOA) argues that the existing inflationary index used by the council – the Retail Price Index – does not accurately reflect its rising costs.

Cllr Jim Buchanan, Cumbria County Council’s cabinet member responsible for transport, said: ‘Everyone is feeling the squeeze from inflation and high fuel costs, but we’ve come up with the best compromise. It throws a much-needed lifeline to bus operators while, at the same time, minimises the pressure on our own budget.’

He said the council was urging the Government to provide a relief package for bus operators in rural areas by pouring some of the extra revenue it receives from increased fuel duties back into service provision.

In 2003/4, Cumbria received just under £400,000 through the Government’s rural bus challenge and urban bus challenge schemes, but these schemes were reduced to £106,000 funding in 2007/8, and had now been removed altogether, Buchanan said.

‘Reintroducing these schemes should be a priority for the Government,’ he added.

‘Another measure which would provide considerable relief to operators would be for the Government to extend the fuel duty rebates which bus operators receive so that they cover home-to-school transport as well as normal public bus services.’