Archived decisions
REPORT OF THE
EXECUTIVE MEMBER FOR ENVIRONMENT
PART II
BUS SUBSIDY BUDGET - SAVINGS PLAN
1 The County Council's revenue budget envisaged service reductions totalling just over £1.1m in order to provide adequate funding for Adult Services. The Environment Service's share of these budget savings is £244,000 in 2007/08, rising to £495,000 in 2008/09 and the budget decision was to make such reductions in the area of passenger transport. The Executive Member for Environment has, therefore, considered a detailed report on ways of achieving savings of £495,000 from the bus subsidy budget which totals £6 million.
2 Some 70% of passenger journeys in Hampshire are provided commercially by various operators. Bus services which become unprofitable are considered by the County Council for subsidy in order to meet the needs of those who have no alternative means of travel for primary purposes. Access to employment, education, health, and food shopping are considered to be the primary needs. The 1985 Transport Act refers particularly to the needs of the elderly and disabled. Provision to meet such needs is through community transport as well as subsidised bus services.
3 In formulating options for the necessary reductions, priority was given to the retention of day time bus services, which are more important in meeting priority needs and priority groups. The approach, therefore, was to concentrate withdrawal or reduction of subsidy on:
· Sunday services
· Weekday evening services
when fewer people travel and fewer facilities are open and there is less loss of accessibility. There was also scope for reduction in subsidy in the case of some weekday daytime services where there are low rates of passenger usage or alternative provision was reasonably accessible. Approval was therefore given to a series of reductions in the bus subsidy budget totalling some £500,000 for discussion with the bus operators and eventual implementation with effect from 1 October 2007.
4 This decision had particular regard to
· The extent to which there are alternative services available, either a different combination of bus routes, community transport or shared taxis
· The need to promote linked public transport services, for example bus/train and access to other public services such as hospitals.
· Representations made by individual County Councillors about particular services affecting their areas
· Letters of representation received from District Councils, bus users and other interested parties
In addition, a decision to withdraw subsidy does not necessarily mean that the bus service would cease, as there might well be circumstances where operators were prepared to run them commercially, or District Councils were prepared to help with funding.
5 There were a few areas where more information was needed in order to assess fully what impact reductions in subsidy might have. In four specific cases, there was further investigation of usage, costs and alternatives for individual bus services. Following detailed consideration of these issues and two other services, the previous decision was modified in relation to five services. Windfall savings on other services mean that the total savings package is still achievable.
6 There have been decisions by three District Councils who have indicated their willingness to fund certain services within their areas and thereby retain bus routes for which County Council subsidy had been withdrawn. There has also been an offer by Dorset County Council and Bournemouth Borough Council to provide funding which secures the retention of the bus service on Sunday evenings between Bournemouth, New Milton and Lymington. These are very welcome developments.
7 Reductions in bus subsidies are not easy to make but, given the need to achieve savings, reductions have been concentrated on areas which will minimise loss of accessibility. In the light of representations made, the decision has been adjusted in particular cases where a need to maintain access has been justified, whilst still achieving the target budget.
M.J. KENDAL
Executive Member for Environment
8eR61807