To agree the approach to reducing subsidy and delivering significant savings for passenger transport services over the period 2014/15 and 2015/16.

THAT:

(a)      the approach to reducing passenger transport subsidy and securing savings of £1M over the period 2014/15 to 2015/16  including a comprehensive review and re-planning of passenger transport services in an integrated way (including the approach to consultation) as outlined in this report be approved; and

(b)      authority be delegated to the Director of Economy, Communities & Corporate,  in consultation with the Cabinet Member for Health and Wellbeing,  to finalise and implement service changes following the public consultation and contract tendering

The recommendations will contribute towards the council’s overall plan to set a balanced budget for 2014/15 and will result in further savings in the following financial year.

1.         An alternative option would be for the council to provide sufficient funding to continue with current levels of service. However, given the overall budget pressures it is acknowledged that this could only been achieved through cuts to other council services.

2.         This report sets out a measured approach to secure savings comprising integration of services, commercialisation of currently supported services and reduction in service frequencies. Consultation carried out in development of the Local Transport Plan supported the principle of maintaining a core network of services providing passenger transport between Hereford and the market towns and larger villages. 

3.         It is unlikely that all savings will be achieved through efficiencies and therefore withdrawal of some services is also likely to be necessary to deliver the full savings requirement. Options for service reduction have been identified through consultation with users and will inform the service review and prior to determining the final network