City denied extra bus pass funding (From Daily Echo)

City denied extra bus pass funding

12:12pm Saturday 7th November 2009 in

• Skip social links
• Print
• Email
• Comments(5)

SOUTHAMPTON City Council has been denied extra funding to administer the Government’s free bus travel scheme for pensioners.

The concessionary travel scheme was extended last year to give the over-60s and disabled people free off-peak local bus travel anywhere in England – and not just in their own council area.

After councils complained they had not received enough money to compensate bus companies, forcing them to raid other budgets to fill the funding gap, the Government launched a review into the way central grants are distributed.

It is now proposing to boost the coffers of some councils by hundreds of thousands of pounds in 2010/11 to account for the larger than expected take-up of the scheme.

But others will miss out on extra funding.

Local authorities likely to get a top-up payment in the south include the Isle of Wight (whose grant is set to double from £890,000 to £1.78m), Fareham (up £450,000 to £740,000), Basingstoke and Deane (up £20,000 to £380,000) and Test Valley (up £10,000 to £25,000).

However, under the proposed new deal, Southampton’s grant of £1.11m would stay the same, as would the New Forest’s £520,000, Eastleigh’s £320,000,Winchester’s £270,000 and Gosport’s £200,000.

A spokesman for Southampton City Council said: “The council will examine the proposals carefully to see if we need to take any action.”

Across the south as a whole, the county’s authorities would be left £1.37m better off overall. The proposed redistribution will be subject to a consultation until the end of next month, before the final settlement is published early next year. Overall, the total amount of money allocated will remain unchanged.

Transport Minister Sadiq Khan said: “The free bus pass is a popular policy, giving 11 million older and disabled people greater freedom and independence.

Ensuring this extra money is distributed fairly and to where it’s needed most is critical to the continued success of the scheme.”

Regional Minister for the South East Jonathan Shaw said the review showed the Government was “listening to concerns and is taking action”.

He said: “While I sympathise with some areas which could see a decrease in funding, I welcome the proposal for extra cash for the major tourism centre of the Isle of Wight.”