Residents in south Shropshire could face a £5 rise in their council tax bills after the Government said locals should stump up the £85,000 cost of a concessionary travel scheme.Civic leaders in today said spiralling costs of the Government-imposed concessionary bus travel scheme had forced South Shropshire District Council to budget for an extra £85,000.

The money was required to cover the shortfall between Government funding and the actual costs of providing concessionary bus travel to residents in the district, they said.
The Concessionary Bus Travel Act, which comes into force in April 2008, is certain to increase South Shropshire District Council’s expenditure on concessionary travel provision.

But the Government has made it clear it will not cover the full costs of delivering the new scheme.

In a letter to the council, Matt Coleman, the Department for Transport’s policy leader for concessionary travel division, said: “We are not in favour of reimbursing local authorities for the actual costs they incur.”

Today Graham Biggs, council chief executive, said the authority was being asked to act as a magician and “magic up” the funds.

He said: “Here we go again. The Government imposes yet another duty on us, and expects us to find the money.

“We have no choice in the matter, and are expected to magic up the funds.”

Mr Biggs said if the council was to raise the extra £85,000 needed to pay for the current concessionary travel scheme by raising the Council Tax, it would mean an extra £5 on the average bill – a 2.5 per cent increase.

Councillor Cecilia Motley, council leader, said: “Talk about a rock and a hard place. We’ll pick up the tab for all bus journeys in South Shropshire made by people eligible for free travel, whether those people are local residents or visitors.

“It beggars belief. In a letter from the Department of Transport, we are told clearly the Government is not prepared to hold all the financial risk of providing the new scheme.”

By Andy Richardson