Bus pass changes anger councils
Author: The Guardian |
An overhaul of the £1bn free bus pass scheme for people over 60 will leave some councils out of pocket, local authorities have warned, after the government ruled out increasing the fares subsidy.
The Department for Transport today unveiled plans to use money from subsidy-rich local authorities to bail out 200 councils facing a serious cash shortage. The transport minister, Sadiq Khan, said authorities in London and 63 other English councils would see their grants reduced.
London councils criticised the proposals, which they claimed could halve their funding next year in order to prop up authorities across England such as Harrogate, Exeter and Chesterfield.
“Under this funding regime, London is already disadvantaged and today’s decision could impact on the services boroughs provide,” said Merrick Cockell, who chairs the London Councils organisation.
Under the scheme, councils compensate operators for everyone over 60 they carry for free. Areas with major bus stations, such as Preston, have been hit hardest because authorities must pay for every journey that starts in their area – even if pensioners are travelling out of the borough. Preston’s funding allocation will more than double under the proposals, at the expense of London authorities. A government source said the proposed reforms ensured that councils facing serious funding shortfalls would be able to cover their costs. Councils that received more cash than they needed to fund passes, particularly in London, would see some of their excess funding switched to less well-off councils but could still fund free bus passes comfortably.
“All local authorities will receive enough money to cover the costs of the scheme and in very many cases will still have surplus. This includes London,” said the source.
Opposition MPs said the proposed reforms would still leave some councils with funding concerns. “This announcement is an admission of failure from the Government on their botched funding mechanism for concessionary fares. They said they would fully fund the scheme but left many local authorities with a major funding shortfall which has inevitably led to pressure for council tax increases or service cuts,” said Stephen Hammond MP, the Conservative shadow transport minister. The Liberal Democrat shadow transport secretary, Norman Baker, said: “It is at best a temporary measure that doesn’t deal with the real issue of underfunding.”