Issue - meetings

Concessionary Travel Reimbursement in 2023/24

Meeting: 16/02/2023 - Executive (Item 391)

391 Concessionary Travel Reimbursement in 2023/24 pdf icon PDF 162 KB

Decision:

RESOLVED

 

KEY DECISION

 

That the Executive agreed to reimburse bus operators for concessionary travel at 90% of pre-Covid levels until 31st March 2024 (this is subject to the passage of appropriate secondary legislation through Parliament)

 

 

Reason for Recommendation – To support bus operators in  North Northamptonshire following the decline in passenger numbers caused by the Covid pandemic with the intention of securing current bus provision.

 

 

Alternative Options Considered – The Council could provide a lower level of concessionary reimbursement than proposed; however, this would be likely to lead to a reduction in the level of bus service for North Northamptonshire communities. The Council could provide a 100% reimbursement based on pre-Covid levels. This would  reverse the recent reduction to 90% and is considered to set an unrealistic expectation that patronage levels (and related funding) will reach 100% of pre-Covid levels in the foreseeable future. It is, therefore, not recommended. Except for the small number of subsidised services provided under contract to the Council, the level of service provided is a matter for the commercial bus operators and not a decision which the Council can make or directly influence.

 

 

Minutes:

(Cllr Graham Lawman left the room prior to consideration and voting on this item)

 

The Chair welcomed Cllr Dorothy Maxwell to address the meeting. Cllr Maxwell made reference to the start time of concessionary bus travel and queried whether this could be made earlier, the importance of rural bus services as well as current funding levels for concessionary travel.

 

The Chair thanked Cllr Maxwell for her contribution before Cllr Bunday, Executive Member for Finance and Transformation introduced a report that sought agreement for the arrangements for reimbursing bus operators for concessionary bus travel in 2023-24.

 

Cllr Bunday stated that the Council had a statutory duty to reimburse bus operators for free travel by eligible older persons and disabled persons pass holders under the English National Concessionary Travel Scheme. It was heard that since the start of the Covid-19 pandemic, concessionary bus travel had been significantly below pre-Covid levels. Consequently, the Government was requesting the Council to continue reimbursement at pre-Covid levels through the 2023/24 financial year.

 

In North Northamptonshire, operators were reimbursed at 100% of pre-Covid levels until 30th September 2022 and had since been reimbursed at 90% of pre-Covid levels. It is recommended that, subject to Parliament approving the necessary secondary legislation, reimbursement continues at 90% of pre-Covid levels until 31st March 2024 to provide consistent funding for operators to minimise the likelihood of further reductions to bus services.

 

 

 

RESOLVED

 

KEY DECISION

 

That the Executive agreed to reimburse bus operators for concessionary travel at 90% of pre-Covid levels until 31st March 2024 (this is subject to the passage of appropriate secondary legislation through Parliament)

 

 

Reason for Recommendation – To support bus operators in  North Northamptonshire following the decline in passenger numbers caused by the Covid pandemic with the intention of securing current bus provision.

 

 

Alternative Options Considered – The Council could provide a lower level of concessionary reimbursement than proposed; however, this would be likely to lead to a reduction in the level of bus service for North Northamptonshire communities. The Council could provide a 100% reimbursement based on pre-Covid levels. This would  reverse the recent reduction to 90% and is considered to set an unrealistic expectation that patronage levels (and related funding) will reach 100% of pre-Covid levels in the foreseeable future. It is, therefore, not recommended. Except for the small number of subsidised services provided under contract to the Council, the level of service provided is a matter for the commercial bus operators and not a decision which the Council can make or directly influence.

 

(Cllr Graham Lawman returned to the meeting following the conclusion of voting on this item)