Consultation on the withdrawal of subsidy from local bus services 2016

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Purpose The county council continues to face an unprecedented financial challenge. Over the next five years to 2020/21 the council needs to make savings of 262m on top of those agreed within previous budget processes. This extremely difficult financial picture is the result of continued cuts in funding by Government, rising costs and rising demand for key services.

Based on current spending and forecast demand for services, the council will not have sufficient financial resources to meet its statutory obligations by April 2018, even if we no longer continue to deliver any of the non-statutory services. The council will need to rely heavily on reserves in order to set a balanced budget for 2016/17 and 2017/18.

With regards to the proposals for withdrawing all subsidies for bus services, unfortunately, many of the proposals will affect a wide range of service areas and impact on frontline services. Where possible, we are continuing to look for more efficient ways of working that save money without affecting our customers and communities.

We have formally advised the bus operators of this decision and that the subsidies for Lancashire County Council bus service contracts will cease on 2 April 2016.

Whilst many of these bus service contracts are not commercially viable, bus operators are considering whether they could provide some service level in the area, without any level of subsidy. Where this is not possible bus operators will deregister the service with the Traffic Commissioner from 2 April 2016. We have asked operators if they could confirm their intentions as soon as possible on this matter.

When information about potential service coverage is known, we will forward details of those services, whole or sections, which we are anticipating not to be provided, to other operators to establish if there are alternative commercial opportunities to maintain some level of service in an area.

Following these discussions with bus operators, we would then be in a position to advise residents/local communities where conventional bus services would no longer operate and what, if any, mitigating action can be taken.

This consultation is focused on the impacts of this decision and what mitigation may be taken.
Subject Public transport
Commissioned by Public and Integrated Transport
Geographic area All of Lancashire
Method Questionnaire - online
Questionnaire - postal
Consultation with General public
Date 04/01/2016 - 27/03/2016
Undertaken by Public and Integrated Transport

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Contact information

For more information about this research contact:

0300 123 6701

Related information

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