News: S&WY Councils face compensation bill for bus changes

Yorkshire Post 3rd November 2015  “Ministers are being urged to ensure that Yorkshire councils do not have to spend millions of pounds compensating bus companies as part of efforts to improve services in the region. The concern has emerged after an attempt to give local authorities in the North-East more control over bus services was rejected today.

The independent board considering the measure found that operators could lose between £85 and £226 million and that the Government should consider whether compensation should be offered as part of such arrangements. The judgement has been reached as the combined authorities in West and South Yorkshire make moves to introduce London-style bus franchising as part of their devolution discussions with the Government. Ministers are now being urged to make sure the Government’s proposed Buses Bill protects cash-strapped councils from having to compensate bus companies.

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