Harrogate Council may get more cash to fund concessionary fares
6 November 2009
Harrogate Borough Council has cautiously welcomed news that the Government has listened to it and other adversely affected councils regarding the shortfall in Government grant to cover the cost of national concessionary travel for the elderly and infirm.
Harrogate
councillors and transport officers have made protests to the Government regarding the shortfall in funding which last year saw Harrogate Council taxpayers having to plug a £1.5m funding gap in the cost of providing this concession.
Early indications are that the Government will increase Harrogate Council's grant by £480,000 taking it from £590,000 to £1.07m.
Whilst the council is supportive of the free travel scheme, it has long argued that as a popular tourist area it is one of the worst hit in the unfair grant funding formula.
Councillor Andrew Jones, Cabinet Member for Resources says he is pleased that the Government has accepted Harrogate's case that was well prepared and documented.
He said:
"Although the Government is not prepared to put in extra money, it has compared concessionary travel spending across the country in 2007/08 and 2008/09 and has been able to estimate where some authorities might have been receiving excessive grant.
"Having to find this £1.5 shorftall while keeping council tax down and not cutting services, has meant that the council hasn't been able to invest in or improve other services such as recycling."
In his letter, announcing the funding consultation, the Rt Hon Sadiq Khan, Minister for Transport, said that around 30 authorities have cause for concern over the funding shortfall and that authorities in London and a further 63 across the country can expect to see reduced grant payments next year.
Councillor Don Mackenzie, Harrogate's Cabinet Member for Planning and Transport, said:
"Officers and councillors are to be congratulated on their successful lobbying.
This is good news and we cautiously welcome it.
But we are still facing a shortfall of £1m and this will be set out in our response to the Government's consultation.
In the meantime, we will continue to look at all options to minimise the cost to local taxpayers such as that done recently to reduce slightly the reimbursement rate to bus operators.
We have used their own data for this reduction which is fair and equitable and leaves the operator neither better nor worse off because of the scheme."
The council is disappointed that Transdev have announced fare increases effective from 15 November, which appear to have been brought forward from January 2010 and feel that they will reduce the incentive for people to use public transport.
Further information:
Councillor Don Mackenzie is available for comment on 01423 872211 or 07957 304109 and Councillor Andrew Jones on 01423 526165 or 07720 717463