Ministers are told bus fares in Plymouth will rise if grants are slashed
SLASHING bus grants by a fifth will lead to fare rises and reduced services for passengers in Plymouth, ministers have been told.
Government claims the subsidy cut could be 'absorbed' without impacting on ticket prices has been branded "absolute nonsense" by opponents at Westminster.
As part of the Whitehall spending squeeze, the bus service operators' grant, which pays for about 80 per cent of operators' fuel duty, is to be reduced by 20 per cent. There had been fears it could be scrapped altogether.
Transport minister Norman Baker said: "From 2012-13, the rate at which bus service operators grant is paid will be reduced by 20 per cent.
"Our assessment is that this level of reduction will, overall, have a low impact on socially excluded groups."
He added: "I spoke to the Confederation of Passenger Transport UK, which represents the bus industry, following the Chancellor's announcement on October 20.
"It was hopeful that, in general, this reduction could be absorbed without fares having to rise."
But Labour's Stephen Hepburn said: "That is absolute nonsense. The pensioners and the poor people of this country did not create the banking crisis, so why are the Government making them pay with cuts such as this, which will inevitably mean rises in fares and reductions in services?"
Mr Baker pointed to hopes the cut could be absorbed without fares having to rise.
He argued that the Government had protected free bus passes.
The Lib Dem transport minister said: "First, the stories in the press throughout recent months have been suggesting that the bus service operators grant will be abolished, but they have clearly been completely off tack.
"Indeed, the cut to the grant has been less than the average for the department, in recognition of the importance of bus services to local people.
"I come back to the point made by the Confederation of Passenger Transport UK, which, after all, represents the bus industry and so, with due respect, perhaps knows more about buses than he might do.
"It has said that, in general, the reduction can be absorbed without fares having to rise; that is the view of the industry."
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