Wednesday 24th November 2010

(13 years, 6 months ago)

Westminster Hall
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Karen Lumley Portrait Karen Lumley
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I totally agree with my hon. Friend. I shall probably come to that point later.

I fully support the announcement in the Government’s comprehensive spending review to

“Protect the statutory entitlement for concessionary bus travel, ensuring that older people can maintain greater freedom and independence.”

However, I am worried that it does not go far enough. I believe that the Government are not effectively addressing the serious concerns voiced by district and county councillors about the reduction to local government resource grants of 28%, the transfer of grant funding administration and the 20% cuts to the bus service operators grant. Together, those will have a significant effect on the provision of concessionary travel.

Today, I wish to speak particularly about the implications that the transfer of grant funding from district councils to the county council, mentioned by my hon. Friend the Member for Worcester (Mr Walker), will have for two-tier authorities. I stress that the problem is not the principle of transferring the funding to county councils, but the process of reallocating financial responsibility. Under current plans, the national scheme, which is administered locally, is to be withdrawn from district councils and transferred to county councils from April next year. In the past, councils have often had to deal with substantial shortfalls in funding for the scheme, and the latest development appears to be a continuation of this struggle.

Harriett Baldwin Portrait Harriett Baldwin (West Worcestershire) (Con)
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I congratulate my hon. Friend and Worcestershire colleague on securing this important debate. Does she agree that it would be desirable for councils, whether at district or county level, to be net-net—not out of pocket either way—when implementing the scheme on behalf of the Government?

Karen Lumley Portrait Karen Lumley
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That is the point that I am making. The proposal could be devastating for district councils, as they stand to lose significantly more than they spend. The system has been described as a mess by the District Councils Network. Changes to the formula need to be clear, transparent and accurately carried out, but many councils are concerned that the implications have not been properly thought through.