Agenda item

The Chief Executive reported that two questions had been received under Standing Order 35.

 

1.    Question asked by Mr. Adam Stares:

 

In the Highways & Transport Grown & Savings section of the current MTFS (Appendix B, point 44 of this Committee's January meeting) there is a proposal to cut spending on bus subsidies marked as a “Service Reduction” to save £400,000 each year from 2026/27.

Is the Council still committed to this upcoming spending cut which it has described as a “service reduction” and what does it expect that the impact will be on service users from 2026/27?

http://cexmodgov01/documents/s187653/MEDIUM%20TERM%20FINANCIAL%20STRATEGY%20202526%20202829.pdf?$LO$=1

 

Reply by the Chairman:

 

The £400,000 savings requirement to ‘review the application of the subsidised bus policy, post Covid’, was included in the MTFS prior to award of one-off central government funding for 2025/26 for bus services (Bus Grant). Whilst government funding remains in place, budgets will continue to be maintained at pre-grant award levels, with any inflation increases being met by grant funding. As things stand, we currently have a one-year Bus Grant allocation for 2025/26 from the Department for Transport of £8.1m (split between £5.0m revenue and £3.1m capital). No further funding has been announced for future years at this stage.

 

In terms of impacts on bus users, should there be no further grant funding then savings will be required and proposals to reduce bus services paid for by the County Council would be developed and engagement with the community on those proposals would take place. Community feedback and any changes proposed would be considered by cabinet for approval before any saving is implemented. It may be helpful to note that the County Council’s Medium Term Financial strategy is reviewed annually.

 

In the meantime, aided by the one off ‘Bus Grant’ funding, the Council is well underway with a comprehensive passenger transport network review to create more travel opportunities for Leicestershire residents in line with its Passenger Transport Policy and Strategy. Full details of the phases of this review and new, amended and improved services including new app based demand responsive transport Foxconnect services are available on the Council’s website here: https://www.choosehowyoumove.co.uk/public-transport/get-around-by-bus/leicestershire-buses/leicestershire-network-review/ Details of the new services that have been launched this week in the Charnwood, Harborough and South West Leicestershire areas are also available on the website. 

 

Mr. Stares asked the following supplementary question:

 

“Firstly, thank you for providing the response to my question. It is good to hear that there is grant funding available for this financial year but could I clarify with my question that without the grant the County Council will not be able to maintain the service in the next financial year and if there is a time table for when we might know if there is a grant and what that process of community engagement will look like and then in that engagement process will it be about whether to make those cuts or will it be about which services to cut or not.”

 

At the invitation of the Chairman, the Director of Environment and Transport stated that the grant came from the Department for Transport (DfT) and its current policy was very supportive of buses which was reflected in this element of funding. However, the funding had only been confirmed for the current financial year and whilst the DfT had indicated that its policy would not change and it was intended that this grant would continue, this was yet to be confirmed through the Government’s spending review.

In response to whether services would need to be cut, if the grant funding did not continue then, it was noted this was a possibility. The Council’s base budgets would not cover the cost of these services. The Director highlighted that the money allocated was significant, more than the County Council’s base budgets had been for many years.

 

The Director advised that the County Council reviewed its MTFS annually, and the Department would, as part of this process if the funding ceased, consider its budgets, along with each community’s’ needs taking account of alternative public transport available, and consult with the public on any proposed changes.

 

The Director stated that the Department was hopeful the grant funding would continue as it was an extensive task to procure a bus service, and the Council sought to continue these over a long period to achieve best value for money. It was hoped that there would be an announcement of multi-year funding settlements this year to enable the Department to make such long-term plans.

 

2.    Question asked by Ms. Rachael Wigginton:

“I would like to ask the following question on behalf of the Leicestershire Active Travel Alliance, the Leicestershire arm of the UK’s Active Travel Alliance, a national campaigning group to increase investment in active travel for healthier lives and safer, quieter streets.

 

My question is as follows:

 

Resident frustration is growing around the significant increase in the volume of traffic and streets completely dominated and overwhelmed by vehicles parked on every spare inch of public space in their local communities.  This is massively impacting health and wellbeing. A key part of the solution is increasing the focus and investment in the alternative quieter healthier forms of transport specifically safe cycling routes to local schools, shops and stations/transport hubs.

 

Leicestershire County Council has received a significant amount of money from Active Travel England to be spent on active travel schemes. Will the Oadby cyclops scheme that was consulted on last year now go ahead? If not, why not and what will happen to the funding? We are concerned that the council will be deemed to lack ambition, as has happened in the past, and will not secure the funding that is likely to be available in the future for Leicestershire.”

 

Reply by the Chairman:

 

The Council remains committed to delivering high-quality active travel infrastructure that supports healthier, safer, and more sustainable transport choices.

 

The public engagement for the proposed CYCLOPS scheme at The Parade, Oadby, highlighted a number of issues including concerns around the one-way circulatory layout not aligning with cyclists' natural desire lines, potentially leading to a risk of conflict between different users of the junction. The Council is considering these concerns and discussing options for a way forward with Active Travel England.

 

The details of the concerns raised during the consultation along with recommended way forward will be fully considered via Council’s democratic process. Subject to the outcome, any revisions to the scheme recommended following discussion with ATE, will be subject to further public engagement.

 

The Council continues to be mindful of the importance of demonstrating ambition and capability in order to maintain future eligibility for external funding, including from Active Travel England.

 

The Chairman advised that Ms. Wigginton was not in attendance and had not raised any supplementary questions.

 

The Chairman thanked Mr. Stares and Ms. Wigginton for their questions.