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Concessionary Bus Fares

The hon. Gentleman has called for the scheme’s further extension, and I shall be interested to hear the costings and to see whether the Liberal Democrats will commit to them. This extension will benefit the people whom we represent. To make it happen, we introduced the Concessionary Bus Travel Bill, which moved to this House earlier this year. It has made excellent progress, and I look forward to the further debates in the coming weeks about its contents. I am glad to hear support on both sides of the Chamber for the positive difference that the enhanced concession will make to people in communities throughout England. The hon. Member for Manchester, Withington (Mr. Leech) urged me to change my mind before the Bill’s Second Reading. I wondered what I could possibly change my mind about, because my commitment is to extending this scheme and having national free travel in England for those 11 million people whom I mentioned. While listening to his comments, I became concerned, because I got the feeling that we are all doomed—I heard criticism after criticism of the policy. It is important to remember that we would not even be having this discussion were it not for the Labour Government’s commitment to the people whom I mentioned. We all know that April 2008 is a challenging deadline, but it is achievable with the assistance of local authorities and bus operators. I wish to put on the record my thanks for the valuable input from the concessionary fares working group and its task groups. This has been, and will be, a good example of how central Government, local authorities and the bus industry can work together to deliver a real difference to people’s lives. I emphasise that it is in all our interests to ensure that we get this popular and correct policy right, which is where my commitment lies. Buses are enormously important for getting people out and about, and bus journeys account for two out of three public transport journeys, which comprises more than 4 billion journeys a year in England. We want buses to be used by even greater numbers, and our commitment to concessionary travel will help that aim. Reference has been made to the need to change the way in which buses are run in some areas to attract more people on to them, and I share that view. Our proposals published in ““Putting Passengers First? represent the most fundamental change in bus policy for 20 years. Last April saw, for the first time, free local off-peak bus travel for older and disabled people. Some local authorities had concerns about the funding that they received from the formula grant. An extra £350 million was distributed—the figure is increasing to £367.5 million for this year—and that reflects local government’s wish to have freedom and flexibility in how they spend their funding. That Government policy is generally welcomed. As I have said before, we recognise the concerns expressed about the distribution of existing and future funding, especially in respect of visitor hot spots. I shall refer to some of the points made by hon. Members. Some of my hon. Friends, who are tremendous advocates for bus passengers in both their local areas and up and down the country, have made several points. I was asked about funding following the passenger. Funding will certainly follow where the trip originates, and it is in all our interests to ensure that funding reflects usage. Clarification has been requested on the administration of the national concession. We have announced that, in order to give some stability, from April 2008 the national concession will be administered by local authorities and passenger transport executives, as it is at present. I also confirm that the Bill will allow local decision making to continue. Local enhancements to the national scheme may continue, and I look forward to that. An inquiry was made as to whether the funding level is sufficient. I am confident that it is, and it includes a large contingency due to uncertainties about take-up. The positive concern is that success will put pressure on the scheme, but, as always, I would rather deal with the consequences of success, and the extra funding from this Government allows for that. It is important to state that local authorities were consulted on how we calculated the extra money, and we included them all along the way. I move on to the card that will be used. What will people have in their hands in April 2008? That question is still subject to consultation. I assure hon. Members that we are working with local authorities and are in the process of holding a series of workshops around the country this month and next month, whereby local authorities can give their input and find out more. We are discussing all aspects of the pass design with our stakeholders, including bus operators and local authorities, and the proposals will go out for consultation before a final decision is made. We intend to negotiate framework agreements with suppliers, which authorities will be able to use, should they wish. We also recognise that issuing passes represents a new burden, and we have proposed to pay an additional grant to cover the issuing costs. We are doing everything possible to assist local authorities in delivery, and we will continue to offer advice and support beyond April 2008. Subject to consultation, the card will be a credit-card-sized photo pass. It will bear the national logo to ensure recognition by bus drivers throughout England, and it will have space for local customisation, such as a logo, to show eligibility for local concessions. On London, the freedom pass will have a national sticker put on it as a temporary measure, because it is not practical or cost-effective to introduce a national pass there in April 2008. Concerns about cuts in other services have been raised. Sufficient funding is going to local areas for the statutory scheme, but it is for local authorities to implement affordable schemes that meet their statutory obligations. After that, they must assess local need and their overall financial priorities, and exercise freedom, flexibility and responsibility in deciding how they spend their funding.