Fears over free bus funding for Cheltenham
Fears are growing the Government could take away nearly £1 million in funding from Cheltenham to pay for free bus travel for the over-60s.
Responsibility for running the concessionary travel scheme is set to transfer to Gloucestershire County Council next year.
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Councillor John Webster
But borough council bosses are warning that the Government could try to take away more money than it currently donates to the running costs.
John Webster, cabinet member for finance, promised to put up a stiff fight if their fears were realised.
He said: “We are more than happy to give all the Government subsidy that we get allocated for concessionary travel to go to the county council to support this, but will not agree to paying for it all.
“We currently subsidise concessionary travel by some £1 million a year beyond what we get from the Government and it is estimated it will increase.”
The concessionary scheme, which gives free bus travel to over-60s and some disabled people, was introduced in 2006 and extended two years later to provide free travel across England.
But arguments over who would fund the scheme have been growing.
The Government originally gave money directly to the councils, but each district received a different amount and in Gloucestershire, Stagecoach claimed it was still short of what it needed to provide services in some areas.
Because many Cheltenham Borough residents used the scheme, the council was having to use taxpayers’ money to top up the Government funding by £600,000 every year.
A new agreement signed between Stagecoach and the six district councils in Gloucestershire last year took that figure to nearly £1 million.
The borough council originally thought the Government would simply transfer its annual payments of about £1 million to the county council.
It now fears Whitehall might withdraw all of the annual running costs of the scheme – more than £2 million – from Cheltenham’s funding pot and give it to the county council, despite the fact half of this was the borough council’s own cash.
Chief finance officer Mark Sheldon said: “In his pre-budget speech, the Chancellor indicated his intention to transfer the responsibility for administration of concessionary fare from district councils to the higher tier from April 1, 2011.
“Consultation on the transfer of funding will take place this summer. The council will be lobbying for a transfer of the funding originally given to the council for funding the scheme, rather than a transfer of the current costs of the scheme.”
A Gloucestershire County Council spokeswoman said the situation was unclear.
She said: “As far as I understand it, the funding the Government gives to the district councils already will just transfer to us.
“That would be more than enough to pay for the scheme.”
A Government spokesman said the transfer was still under review.
10 Comments
by Cllr John Webster, Cheltenham.
Tuesday, February 09 2010, 4:34PM
“For information:
1. The Council is happy to hand all the money it receives from the Govt. over to the County to run the concessionary travel scheme. It will save a substantial amount if it does this because it then won't have to spend any Council Tax payers money on it.
2. Alsion Smith - the funding for Pittville Park was not 'ring-fenced'. It was conditional on getting money from the Heritage Lottery Fund and it failed. It is still open to the public - there are no plans to close it, so, Alison Smith, you can still use it.”
by William, Cheltenham
Tuesday, February 09 2010, 9:47AM
“This whole situation is a nonsense. Stagecoach has played both ends against the middle and is laughing itself silly. Politicians fall over themselves to defend a scheme which makes tons of money for the bus companies. I am over sixty and i want all government to stop telling me what is good for me. If I want to go on a bus I will pay a reasonable fair and I don't want anyone in government to be paid a wage to negotiate on my behalf. It's just job-creation gone mad. As far as I remember, we all managed without these schemes in the past. That was when we actually had productive jobs.”
by Voice of reason, Cheltenham
Tuesday, February 09 2010, 8:56AM
“There are strong arguments for subsidised bus travel for the elderly on low incomes, but many retired people are not poor and could easily afford to pay.
The concessionary fares scheme has been deliberately underfunded by the government to shift the financial burden of the scheme on to council tax payers. A stealth tax of the worst kind, leaving local authorities in a no win situation.
Given the state of the public finances, expect more of the same in future, whichever political party is in power.
Oh...and keep using the buses, because it saves you having to pay for the pothole damage to your car!”
by Christine, Gloucestershire
Tuesday, February 09 2010, 8:38AM
“Look after yourself, correspondent John, and blow the old people who need help. I bet you get there one day and, guess what, you will want our help. What a meanie. Your as bad as John Webster. He gives to the rich and takes the money from the poorer in our society.”
by John, Cheltenham
Monday, February 08 2010, 10:25PM
“About time they scrapped this concessionary travel, it costs me full price on all travel, why should others get it cheaper?
If they didn't offer these concessions, then the full prices could be lowered massively, perhaps more people would then use the buses which could lead to further lowering of the fares.”
by John Doherty, Gloucester
Monday, February 08 2010, 9:54PM
“This Government had plans well laid and set in place to first introduce free concessionary bus travel but afterwards force through completion of unitary formed County Council passenger transport executives to manage public transport. That preliminary plan included all levied charges for on street parking be compensated back to passenger transport executives. The consequence of which would relieve the Labour government from having to pay anything towards concessionary bus travel. The overall net effect would mean central government paying less than they previously paid in 2003. Eventually all parking charges¿ be it on the street ¿ public car parks AND Work place charges levied by your employers will go to these newly formed County Passenger Executives. Hence my earlier comment that money belongs to GCC
In furtherance of the overall plan the next stage envisaged taking driving license entitlement away from senior citizens. Approximating 65 years of age. Where and when did I get my information except from a veteran Labour MP and then parliament's longest serving member and that information has been in my files since late 2007. Although that lady was a labour MP I respected her greatly unlike most other labour people she was honest. Now Councillors what did YOU KNOW and if you did NOT know then why are representing the interests of the electorate.”
by Mal, Local
Monday, February 08 2010, 9:54PM
“Are these fears based on possibly having a Conservative Controlled Government this year?”
by Chris, Gloucester
Monday, February 08 2010, 8:45PM
“Sounds like the thin end of the wedge to me.
Sounds like the over 60's free bus system is on borrowed time.
Also sounds a disgrace they should penalise the most vulnerable.”
by John Doherty, Gloucester
Monday, February 08 2010, 5:02PM
“I strongly disagree with John Websters statement that this pot of Money Belongs to Cheltenham Borough Council. It belongs to Gloucestershire County Council who must coordinate and provide bus service links for Cheltenham people to and from various parts of the Country. ¿He who pays the piper calls the Tune¿ I would further question the presentation of John Websters figures as not being accurate. - Is he suggesting the annual running costs of the Cheltenham scheme is more than £2 million? I note John Webster has not thrown into the public domain Cheltenham staff administration cost for operating this scheme. At times I can critically assess the functions of GCC but afraid not on this occasion. This is long overdue and requires specialist bus industry assessors that District Councils do not possess on their administrative teams.”
by Alison Smith, Cheltenham
Monday, February 08 2010, 4:58PM
“Haven't we already had enough of LibDem Councillor John Thomas Webster?
He gives £1.25 million of our cash to the well-heeled upper-crust at the Everyman Theatre. He paid £2 million to settle the Christine Laird case.
Where does the money come from? He took it from the ring-fenced cash for the old and young who enjoy the simple pleasures of Pittville Park. Most of all Webster will take it from old people who use their bus passes. They will lose the £1 million he has promised to the Everyman.
So, Webster's policy is to give to those with spare cash and take it from the poorer in Cheltenham. There's equality and fairness for you from the LibDem crew.
Well Done! Councillor Webster.”