Hampshire County Council Bus Subsidy Funding 2011/12 - your questions answered

Why does the County Council subsidise bus services?

The council supports bus companies so that they can provide services that are not commercially viable and would not therefore be run without subsidies.  This accounts for journeys made by around 8,700 Hampshire residents each weekday (15% of passenger trips).  The vast majority of trips (roughly five out of six) are not subsidised.

In the past, the county council was able to subsidise bus jorneys on lesser used routes to stimulate demand until a service was completely viable or to meet particular social needs but, in the current financial climate, the county council does not have the funding or resources to continue to do this to the same extent.

Why does the County Council have to reduce bus subsidies?

Hampshire County Council is faced with the challenging task of maintaining essential services with much less money due to reduced funding from central government.

In the current financial year the department's budget, like all council services, has had to reduce to help meet a budget gap of £5.5 million.  In addition our rural bus subsidy grant from government has been cut by a third and will be reduced further in 2012/13.

Why did the County Council carry out a bus subsidy review?

The County Council's budget for providing support for non commercially viable journeys (bus subsidy) is made up of two components.  One is the Economy, Transport and Environment department's budget and the other is the rural bus subsidy grant which is paid directly to the council by central government.

With a 33% cut in the rural bus subsidy grant paid to the county council by central government and the need for the county council to make savings to meet a £55 million funding gap, it was essential that we carried out an in-depth review to find out how people are using bus services and how well used they are.  This is important to ensure that the available funding for bus services is directed to the areas where it can be most effective.

How was the review conducted and when?

The gathering of information took place from February to the end of May and during June this information was processed and analysed.

We gathered information and evidence in a number of ways:

• Through passenger forum consultation;
• Local councillors (county, district, town and parish);
• Voluntary groups;
• Questionnaires (more than 5000) distributed at bus stations, town centres and libraries;
• Studies of census and accessibility data and surveys, together with commercial operators' information about the use of existing services.

How much is the bus subsidy budget being reduced by?

The impact of the cuts in central government funding on the County Council's bus subsidy budget is a reduction of £1.1 million in 2011/12, rising to £2.2 million in 2012/13.  This leaves £6.6 million of funding still available to support bus services that cannot afford to operate otherwise.  This is still more than many other local authorities provide for this purpose.  The effect is an average 45% cut in the subsidy to operators of some commercial services across Hampshire.

In addition to the budget for subsidising non-commercially viable bus services however, Hampshire Councy Council has maintained a budget of £1.8 million for community transport services such as Dial a Ride, Call & Go and Cango which provide door to door transport for over 200,000 passenger trips a year.

How does a government grant funding cut of 33% result in a 45% cut in bus subsidy in Hampshire?

Some bus services are funded using monies outside the review, such as developer contributions for specific routes or externally funded cross boundary routes for specified service.  These funds cannot be redeployed, or cut, to produce savings in the bus subsidy revenue budget.  The £1.1 million reduction in 2011/12 can only be met from the remainder of the overall bus subsidy budget, resulting in a reduction of 45% in this part of the budget.

How will the reduction in the bus subsidy funding affect bus services?

Decisions about changes to services and routes will be a decision for the commercial operators.  The County Council has explained the need to make savings of around 45% to bus operators and asked them to propose how this can be achieved.

In applying reductions, the focus is on retaining existing services even if that means a lower frequency of services or replacing a conventional bus service with alternative options such as taxi-share schemes. This is based on public response to the review of bus services which told us that:

• Around two thirds of people favoured an even spread of bus services rather than just concentrating on the main routes;
• If they had to make a choice, people would prefer a less frequent service every day rather than more frequent services on fewer days.
• Access to shopping, health services and work were ranked as being the top three priorities for bus service provision.

If the bus companies do decide to reduce services, how will passengers get around?

The county council will work with communities to ensure they are not left completely dependent on the private car.

In areas where there is a range of bus services, the impact of the withdrawal of a service will be limited because alternatives exist or can be revised to serve those passengers.

In other cases there will be different options put in place.  Many areas operate community transport or demand responsive schemes, such as Dial a Ride, Call & Go and voluntary car or taxi share schemes.  The county council will be working with local communities and the voluntary sector to plug any gaps which may occur.

Those who have a free bus pass can use them on Cango and taxi-share services or pay half fare on Call & Go and Dial a Ride. Those with Disabled Person's passes can choose the alternative of a £32 voucher for travel on Call & Go, Dial a Ride, voluntary car schemes and participating taxis.

How are government funding cuts affecting bus services elsewhere in the country?

Cuts to the rural bus subsidy grant and the overall government funding to local authorities mean that councils all over the country are having to make difficult decisions.  Some areas have already announced they are making substantial reductions in funding for bus subsidies.

Will the reduction in bus subsidies affect the free bus pass for the over 60s?

No, funding for the National Concessionary Fares scheme is separate to the bus subsidy budget, although the county council has had to top up the funds for concessionary fares to meet the statutory requirements of the national scheme in 2011/12.  We are aware that the budget will be cut further in 2012/13.

N.B. The budget for the National Concessionary Fares scheme is £13.2 million.  The Councy Council has met the shortfall in Government funding for the statutory scheme of £1.5 million and is contributing an additional £350,000 to allow all pass holders to travel from 9am on every bus service, which will help those who have early morning appointments.

For more information visit Concessionary Travel or call 0845 045 8355