Government Should Consider Radical Solution to Bus Pass Funding Problem

Adrian Sanders, MP for Torbay has unearthed figures that show the Government could save money by funding the bus pass centrally.

In an answer to Mr Sanders in the Commons, Minister Paul Clark claimed that centralising the administration would save £2.6million a year.  At the moment Torbay Council is losing out on up to £2million as Government reimbursement does not cover the whole cost to the local authority.

There are also problems with each local authority having to negotiate separately with bus companies on how much to pay for each concession journey.  Some councils will inevitably be better at negotiating with local companies.  A central negotiation system or a legally defined reimbursement level for bus companies would iron out some of the inequalities across the UK which are seeing Torbay council tax payers losing out.

Adrian said: “The scheme is a very good idea, but as is so often with this Government, it has been poorly implemented.  There is confusion over how the system works, with councils paying for journeys made by people from outside the area, which creates resentment.  The ridiculous bureaucracy of the funding formula leaves some councils out of pocket while some profit.  The Isles of Scilly for example receive money for the concession but have no bus services.”

“All of these problems could be solved by centralising the reimbursement to bus companies.  That this would save the tax payer £2.6million a year is an extra bonus.”