Liberal Democrats press Government over funding of free bus travel

The Liberal Democrats force a parliamentary debate on the concessionary bus fares scheme.

As up to 11 million over-60s become eligible for free bus travel throughout England from 1 April, councils claim the £212m the Government intends to pay to reimburse them is being 'unfairly distributed' and is not enough.

Norman Baker, Liberal Democrat Shadow Transport Secretary, Sussex, said research by his party showed half of councils were underfunded and the scheme could end up costing council tax payers £60m. Seaside resorts, cities with tourist attractions and major shopping centres will reportedly suffer most.

Speaking in the debate, Norman Baker said the Lib Dems backed the free bus travel scheme: "I agree with the Minister, who said that the scheme is welcome. It will tackle social exclusion, help the environment and enable people who would otherwise be in their houses to get out and travel. All those outcomes are good. I do not subscribe to Mrs. Thatcher's view that anyone over 30 who uses a bus is a failure, as she said on one occasion. I am happy that people over 60 use buses, as do people of my age."

He set out some of the findings of his survey: "I should tell the Minister that I conducted a survey of what she calls travel concession authorities. Well over half of those responded to my survey. Of those, almost half of the councils said that they were underfunded. The hardest hit councils were underfunded by £1.7 million. Those were Brighton and Hove, and Nottingham. That is equivalent to council tax rises of £40 per family. Many councils reported problems, as we have heard from hon. Members intervening on the Minister and from the Conservative Front-Bench team."

"The Government have miscalculated the allocation to local councils. They may have made their best guess, but that is clearly well out. To compound the matter, they have arranged a three-year formula. That is a good idea when matters have settled down, but to base such a formula on an outcome that the Government cannot possibly predict accurately will in the short term compound the problems of the authorities that will be underfunded."

Julia Goldsworthy, Lib Dem Shadow Communities Secretary, intervened to highlight a problem in her county of Cornwall: "Does my hon. Friend think that the Minister would acknowledge that another problem of the formula is the fact that it does not take into account the number of routes available, although it may take the demographics and potential number of visitors into account? Truro is a hub for many visitors from my constituency, who will park and ride into the town to use the bus scheme, because the routes are available there. That, in turn, gives the local authority additional costs."

Norman Baker responded: "My hon. Friend has made a good point. There are a number of kinks in the system, and they will manifest themselves only as the scheme gets under way. That is happening as local authorities make proper assessments. No one blames the Government for making their best guess, but I am telling the Minister that it is an underestimate by some distance, and there is mis allocation between authorities."

Mr Baker concluded:

"The Government have introduced a popular policy that has been well received by the population at large, but we are now seeing the problems that are resulting from its success. The Government cannot close their eyes and say that they have a fair solution that meets all the local demands, and that it is for the local authorities to sort the problems out. The Government have created a mess. I do not blame them for creating the mess, but it is a mess in financial terms, and the local authorities have been lumbered with tidying it up.

"The Government must recognise that many local authorities are now genuinely well out of pocket, and provide a guarantee that they will review the scheme not after three years but at the end of the first year. If the case can be made to stand up?as I believe it can?that a significant number of local authorities are well out of pocket, and that the overall settlement of £212 million is inadequate, the Minister should pledge to ensure that the scheme will be properly funded in future, and that the costs that local authorities are incurring will be reimbursed."