Threat of subsidy cuts hits bus firms

The authority, which has to find £9m of savings by the end of 2013-14, pays £18m to bus operators like First and Arriva to subsidise non-profitable routes and concessionary fares.

A spokesman said Government spending cuts had forced it to cut this funding, having already cut the workforce of 300 by 10 per cent. The proposals will be considered at a meeting on Friday,

Operator Arriva said the plans were “disappointing” and warned that if they went through services would be affected.

Metro chairman James Lewis said: “We have already made significant reductions in our own accommodation and staffing costs but because we have already been delivering the high standards as the other passenger transport executives at a lower cost with fewer staff for some years, it has made finding savings in our own operation more difficult.

“We have tried to do this in ways that will minimise the impact upon local people, and off-peak bus travel for people over 60 will of course remain free but if my ITA colleagues approve these cost-saving measures on Friday, West Yorkshire’s bus passengers and over 60s, its bus operators and Metro will all be affected.”

The proposals will mean bus operators absorbing the cost of some journeys currently paid for out of the public purse. Changes to the concessionary fares scheme would mean operators making a bigger contribution.

Nigel Featham, managing director for Arriva Yorkshire, said: “We will of course work with Metro to minimise any impact on customers, however, if the ITA do decide to proceed with cuts at the level being suggested, services are bound to be affected.”

Rachel Reeves, MP for Leeds West, said: “The Government needs to deliver on providing a better transport system for everyone – including for those of us in the North.”