£2m cost of 'free' buses
Free bus travel for pensioners could cost Preston taxpayers an extra £2m a year.
The nationwide scheme means councils must fund free bus travel for the over-60s and the disabled on weekdays between 9.30am and 11pm and all day at weekends. The Evening Post revealed in April that Preston was one of 10 authorities hit hardest by the scheme last year – having to make up a 1.4m shortfall in Government funding.
But the picture is now expected to worsen because of the number of people staying at home to holiday.
Under the scheme, councils must stump up for each journey taken by a concessionary fare card holder which start in their area. And that means Preston is bearing the brunt because it is a major transport hub.
Preston Town Hall bosses are at the forefront of efforts to lobby the Government to change the way concessionary fares are funded. The council's finance chief has warned that if nothing is done the extra cost to the council could be the equivalent of a 24 per cent increase in council tax for EVERY household in the city.
Coun Eric Fazackerley, deputy leader of the council and cabinet member for finance, said: "I don't know whether the amount given by the Government, 212m, to the scheme is right or too low or too high.
"What I know is the amount given to Preston is wrong. I have no problem with the project. But we are a hub, we have people coming here and I would not mind if people stopped here. But there is no economic value in 60-year-olds hopping off one bus and getting on another one straight out."
Coun Fazackerley said the council does not know how much exactly the extra costs will be in the next 12 months, but added: "It could be in excess of 2m so we have a real issue here."
Council leader Ken Hudson held a presentation to the Local Government Association earlier this month, stressing the city council's concerns.
Both councillors say Preston has scored a victory following the news that the Government is now consulting on the scheme, but the consultation is set to last into next year at least.
>> Pensioners hit by bus fare hike plans
>> The high price of pensioner passengers
>> Bus pass changes 'will not hit pensioners'
>> Vote in our latest web poll
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Weather for Preston
Thursday 29 July 2010
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