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Pensioner Travel (Tyne and Wear)

The right hon. Gentleman has made an important point. However, it is also true that local government in general and the LGA in particular support the idea of distributing money through formula grant. Devolution, which involves the distribution of money by local authorities, supports the idea that formula grant is the way forward. The alternative is a specific grant to target individual authorities, but the right hon. Gentleman, his party and the LGA would not support that view. We have a situation in which the distribution of money is based on a formula that inevitably results in winners and losers. The Government always face difficult decisions in dividing up a fixed pot of money where there will be, as I have said, winners and losers. We have looked to ensure an equitable arrangement in relation to concessionary fares funding, which involves an arrangement that retains local control for spending as requested by local government, rather than separately distributing the money through a specific grant.