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

The Cabinet Member, Health & Wellbeing introduced the report of the Head of Transportation & Access, which sought approval of the approach to reducing subsidy and delivering significant savings for passenger transport services over the period 2014/15 and 2015/16.

The Cabinet Member, Health & Wellbeing highlighted the following key points:

1. The savings requirement of £1m was over a two year period owing to the timing of contracts covering subsidised bus services across the county
2. The reduction of subsidies would not be a simple across-the-board reduction
3. The needs of service users with complex transport requirements would be addressed through the review
4. The review would seek to maximise the development and use of community transport schemes
5. Commercially viable services should in principle not be subsidised
6. Feedback received through the recent budget consultation (centring on market day services) would inform the review, and further consultation with specific communities would be undertaken
7. There would be no changes to services before September 2014.

Members in attendance welcomed the proposals. The following responses were given to queries raised:

• Integration of services and savings associated with that integration had already begun; more could be achieved
• The value for money of amount of subsidy per passenger would inform future decision-making
• Routes involving out of county journey elements were recharged and therefore subsidies quoted were the net cost to Herefordshire
• Any decision to withdraw subsidy from a particular route would be informed by consultation responses and impact assessments as well as value for money considerations
• The review included social care transport costs
• Route details such as timings and stops should be a matter for discussion between providers and communities
• Many children already completed their journeys to and from school on public services rather than dedicated schools transport

RESOLVED:  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