9. What recent representations he has received on the removal of bus service operators grant from free bus services. (45282)

I have received one letter from the Passenger Transport Executive Group and my officials have had discussions with the Confederation of Passenger Transport about the eligibility of bus service operators grant for free bus services. My hon. Friend, too, has written to me about this matter, as he knows.

An example of an important free bus service is the Cambridge city centre circular route, which goes through the pedestrianised area and provides essential access for the elderly, the disabled and those who otherwise could not get around. The route is at risk not only from the change to the bus service operators grant, but from a rather mistaken county council policy. Will the Minister consider whether support can be given to that essential service, and encourage the county council to support it?

My officials discovered last year that some bus services receiving bus service operators grant were not eligible under the regulations because they were free services. As a result, the grant had to stop being paid. My officials wrote to operators in November to tell them that, and I have subsequently received representations on the matter. I believe that there is a case for continuing to pay BSOG for at least some of those services, so I will explore whether we can change the powers in respect of free bus services. We will continue to allow the submission of bus subsidy claims for free services, pending a resolution of this matter. My officials have told Stagecoach and Cambridgeshire county council about this decision. I therefore hope that between them, they can reach an agreement to continue to run that important shuttle bus.

Does the Minister not understand that although the cuts to bus fuel subsidy may not come in until next year, cuts to bus services are happening now, thanks to the massive front-loaded 28% cut in local transport funding? In the election campaign, the Prime Minister was very clear that he would not axe the national concessionary travel scheme—but does the Minister understand that for pensioners up and down the country, there is no point in having a free bus pass if there is no bus?

Pensioners will, I hope, be pleased by the fact that the Government have guaranteed the concessionary fare scheme in its entirety as inherited from the last Government. I hope they will also be pleased that the 78% of services provided through support from the BSOG arrangements will not be affected in any way this year, and that the BSOG reduction is being phased in in a way that operators themselves say they hope will not lead to reductions in service or an increase in fares—

Order. We are intensely grateful to the Minister for his answer.