Public transport: Rural area faces £5m shortfall in funding for bus travel

A COUNCIL has been left with a £5m funding black hole after the Government failed to act on pleas for extra money to finance free bus travel for the elderly.

Despite pleading their case with Ministers last month, North Yorkshire County Council has been offered no extra money to help fill the funding gap, leaving other council services under pressure.

The Government did find an extra 10m for running the concessionary bus fares scheme, but divided it between district councils across the country to help "transition" costs as they hand over responsibility for the scheme to the county.

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A council spokesman said: "North Yorkshire County Council's funding settlement for concessionary bus fares, which we are obliged to take over from district councils, has been seriously underestimated by about 5m."

Skipton and Ripon MP Julian Smith said he was "very disappointed" and vowed to continue lobbying to get the highly rural area, which has a large elderly population, a "better funding deal".

The Government confirmed it was largely standing by the tough cuts proposed for councils before Christmas as it unveiled the final funding deals yesterday.

Local Government Minister Bob Neill said the deal was "fair and progressive", with no authority getting a cut of over 8.8 per cent in Government funding next year.

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But Shadow Local Government Secretary Caroline Flint said: "This settlement is neither fair nor progressive and will provide no comfort to councils facing the worst cuts in a generation."

Severe cuts in police budgets were also confirmed yesterday, sparking a warning from Shadow Home Secretary Yvette Cooper that thousands more police officers will be axed.