OAPs' bus plan cost warning
Updated on 18 February 2008
Council Tax payers could be landed with a £60 million bill when the nationwide concessionary bus scheme for senior citizens is introduced this spring, according to the Liberal Democrats.
The party said its research showed that there would be cost overruns despite Government claims that the total grant of £212 million to extend the scheme nationwide would be sufficient.
The Lib Dems said that requests made to councils in England under the Freedom of Information Act showed almost half of the councils are underfunded and the whole scheme could end up costing them up to £60 million; the hardest hit councils are Brighton and Hove and Nottingham which are under-funded by almost £1.7 million; this is equal to Council Tax rises of up to £40 per family; demands from bus companies for more reimbursement could push the underfunding figure per council up to as much as £4 million in some areas.
Lib Dem transport spokesman Norman Baker said: "This scheme will help many poor pensioners, but thanks to terrible accounting from the Government, it will be Council Tax payers across the country who will end up picking up the bill.
"Yet again the Government is making promises and then expecting others to deliver them. The Government should review the funding formula to ensure that no councils are hit too hard."
From April, people aged 60 or over will be able to travel free by bus anywhere in England. Local authorities will pay for those journeys that begin in their district. Popular destinations like Brighton or Cambridge are expecting costs to rise significantly as they attract more visitors by bus from other areas.
Under the current concessionary bus fares scheme people over 60 can travel for free on buses only on journeys within their district council area, although some local authorities have negotiated with neighbouring authorities to provide free travel in their area.
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