Concessionary bus fares and EU rules lead to real problems

[whole diary]

[Chris from Nailsea]

Ongoing problems in Oxford, too:

City council leaders in Oxford are warning they face making cuts to jobs and services due to the global financial downturn.

Officers are warning council leaders that the local authority is facing falling income and rocketing costs, with the likely overspend on services estimated at ^1m.

Fewer people are using the city^s leisure centres and car parks, while tourism is also down because people are cutting back on their spending, a financial report warns.

The problem has been compounded by the escalating costs of the concessionary bus fare scheme for pensioners, which is now expected to cost ^500,000 more than expected.

The council^s financial reserves are also said to be under real threat from ^the potential write-off of all or part^ of its ^4.5m investment in Icelandic banks.

For the full article, see http://www.oxfordmail.co.uk/news/3846708.City_heads_for_financial_woe/

[Chris from Nailsea]

... and in Devon:

Council services in the South West could have to be cut to help pay for free nationwide bus travel for pensioners.  More and more elderly people are using the subsidised travel system launched by the government in April 2009.

Councils get money back in government grant aid to help cover the cost but many councils say the grants are too small and they are seriously out of pocket.  Exeter City Council says it is facing a shortfall of more than ^1m.  The authority says it has to look closely at its budget including spending on leisure and tourism.

It is a similar situation in Torbay where the council says it will be left ^600,000 short.

Neither authority says it wants to put up the council tax to recover the extra cost.

The Department for Transport has agreed to meet a delegation from Exeter, including the city's MP^▸ (Member of Parliament) Ben Bradshaw.

See http://news.bbc.co.uk/1/hi/programmes/politics_show/7719355.stm

[John R]

The whole thing is a disaster, as was predicted by many people and councils. But which party would now try and abolish it? Imagine the bad PR^▸ (Public Relations).

If they restricted it to over 70s it would mitigate the cost and match provision a bit more closely to need. It is ludicrous that at a time when the government has given people the right to remain in work until 65 if they so desire that they have introduced a benefit for "pensioners" which kicks in 5 years before the state retirement age.

I suspect one problem is that free pass holders think nothing of getting on the bus for one stop (which they could walk in 3 or 4 minutes). The result - they are less fit, and the council have to pay another flat rate fare to the bus company.   

[Chris from Nailsea]

Oxford's proposals to resolve the problem:

The cost of parking in Oxford could increase by 15% in the New Year if proposals are approved.

Prices would rise at Westgate Shopping Centre and all council-run car parks in the city from 1 January.

The price increase is part of a move by the Labour-run city council to make up a multi-million pound budget shortfall.

Council deputy leader Ed Turner said he accepted people would be upset about the increased charges, but added that the council had little option.

The deficit in the budget has come about as a result of losing ^4.5m it had invested in Icelandic banks.

Plans to introduce a concessionary bus scheme for pensioners will also push the council ^500,000 over-budget by the end of the financial year.

See http://news.bbc.co.uk/1/hi/england/oxfordshire/7738153.stm