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Bus Services: Cumbria

Volume 462: debated on Wednesday 4 July 2007

To ask the Secretary of State for Transport what assessment she has made of the likely impact on the provision of rural bus services of the real terms reduction in the rural bus subsidy grant to Cumbria county council in 2007-08. (146708)

[holding answer 29 June 2007]: In 2007-08 Cumbria will receive £1.6 million in rural bus subsidy grant (RBSG). This is a 2.39 per cent. increase over the previous year, which is the same percentage increase received by all other local authorities receiving the grant. RBSG allocations for 2007-08 total £55.6 million. This is a 71 per cent. increase in cash terms since the grant was introduced in 1998.

Whether an authority’s allocation represents a reduction in real terms depends on the changes in contract prices that authority faces during the course of the year. This varies from area to area. It is for each authority to review their expenditure on bus support, taking account of local priorities and all the resources available to them which includes, in addition to RBSG, revenue support grant from central Government.