District View
The free fare scheme has eased the constraints which previously disadvantaged the disabled, and those aged 60-plus, from accessing services, and simply getting out and about on costly public transport.
This is great news for our customers – and for the environment.
And it’s a scheme which councils are happy to support.
However, it is also aptly described as an untethered financial beast.
With an unpredictable and increasing number of passenger journeys as people flock to Devon’s fantastic coasts and countryside, and access vital services across boundaries, leaving councils to pick up the bill, just how does any council budget efficiently meet the demands of the upcoming national scheme, post 2008?
The line taken by ministers that there’s enough cash in the national pot is fundamentally flawed in the light of compelling evidence of the dramatic pressure that free fares are exerting on council budgets, especially in holiday and rural areas.
The effect on our Devon-wide Partnership is to exceed the concessionary fare element of next year’s RSG by £3m.
In 2007/08, Teignbridge alone stands to lose out by up to £1.3m above our RSG.
That’s 40% of our existing net non-pay budget, and in addition to concessionary fares costs of £450,000 above RSG this year.
Even with the efficiencies of a robust partnership, we are all struggling to meet the cost of the scheme.
And the partnership response is complicated by the fact that some participants are heavier losers than others – a scenario which will be replicated country-wide when free fares go national.
And we all know there’s no such thing as a free lunch.
Pensioners are seeing that while they’ve been given free fares, many councils will have to hike their council tax or make cuts in services – or both – to pay for them.
But there is one possible solution.
Rather like housing benefit, the Government could reimburse councils for the actual expenditure on the free fares scheme.
At least this would be fares fair, and smooth out the winners and losers. n
Nicola Bulbeck is chief executive of Teignbridge DC