PR 2251

MAKING BUS SUBSIDY BUDGET MORE EFFICIENT

Escalating pressures on Hampshire County Council's bus subsidy budget have prompted a review that will help ensure the most heavily used services continue running for the next year.

The County Council's Executive Member for Environment (South) has said measures must be taken to halt escalating pressures on the bus subsidy budget. There is little prospect that re-tendered contracts will bring reductions in required subsidy - recent re-tenders in the Andover, Basingstoke and Gosport/Fareham areas have shown a collective increase of almost £200,000 (8%) just to maintain the same services.

Today (26 July) a decision was taken to maintain services that require a maximum subsidy of £2.50 per passenger journey, and to retain the better performing Sunday and evening services, which require a subsidy of £2.00 or less.

The proposed changes are subject to consultation with district and parish councils, with the final programme to be decided in September.

The measures will ensure that the County Council provides efficient use of council taxpayers' money, while subsidising those services that provide a significant number of residents with a bus service that would otherwise cease. This will balance the 2005/06 bus subsidy budget and provide some room for manoeuvre in the next financial year.

`School specials' - commercially run services predominantly used by school pupils - that fail the £2.50 maximum subsidy per passenger criterion are not affected by the review.

Executive Member for Environment (South), Cllr Tim Knight, said: "These measures enable the County Council to target its money to those services that are used by the highest number of passengers. It's not an efficient use of council taxpayers' money to be paying up to £10 per passenger for some bus journeys - it simply doesn't make sound financial sense.

"The bus subsidy budget has been under pressure for some while now, and we've got to do something to ensure that there's enough money in the pot to benefit those people who use the most popular services.

"The decision today is to maintain services which require a subsidy of £2.50 per passenger or less, and maintain the better performing Sunday and evening services. This isn't a decision I've taken lightly but one that I feel is absolutely necessary given the circumstances."

The County Council will now work on a new framework to evaluate future service support, with priority given to areas that benefit the greatest number of people and give the best value for money. Initial findings indicate that financial support could be refocused and targeted more effectively on meeting local travel needs with an overall increase in passengers served.

Notes to editors

The passenger transport budget for 2005/06 is £6.226 million. The Rural Bus Subsidy Grant is £1.428 million. The Countryside Agency contributed £118,000, and there is £442,000 available for Bus Challenge projects.

A list of those services which will be affected by the proposed measures is available at: www.hants.gov.uk/decisions/decisions-docs/050726-exmshr-R0726104915.html. It is important to note that these are indicative figures, which are subject to consultation.

ENDS

For further information please contact: Julia Herron on 01962 846006
julia.herron@hants.gov.uk
26/07/2005