London Would Be Biggest Loser In New Bus Fares Deal

Source: London Councils
Posted on: 8th November 2009

The government’s decision to reopen the third year of the funding settlement for the national bus concession has angered London Councils.

Under a three year package announced by government in 2008, London was set to receive around £58 million in 2010/2011 to help cover the cost of providing free off peak bus travel in the capital.

However, today Minister for Transport, Sadiq Khan announced that he was reopening the consultation on the final year of the settlement – which could result in London losing around half of this funding.

London Councils fears the capital is losing out because it has run a statutory concessionary fares scheme – the Freedom Pass – for over two decades.

If the government proposals are agreed London would be the biggest loser of any of the major cities across the country – with London boroughs losing on average just under £1 million each.

London Councils’ Chairman, Councillor Merrick Cockell, said: “The government’s decision at this late stage to alter the deal already agreed is absolutely stunning and will be met with anger across the capital.

“Boroughs have already budgeted for this funding and now London is facing having the amount of funding it was promised almost halved. Under this funding regime London is already disadvantaged, compared to other parts of England, and today’s decision could impact on the services boroughs provide.”

The government’s consultation on their proposed new levels of grant for the national bus concession runs until 30 December.

The Freedom Pass allows Londoners aged 60 and over plus eligible disabled residents to travel free on the capital’s buses, trains, London Underground, trams, and the Docklands Light Railway.

The government’s national concessionary fares scheme allows disabled people and those aged 60 and over to use their passes on any off peak bus journey in England. The council covering the place where the free bus journey begins is required to pay the cost of the journey.

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