£4 million plan to drive down cost of bus fares

Published on Wednesday 18 February 2009 13:23

BUS fares could be driven down as part of a £4 million plan to offset fuel duty, it was announced today.

Scottish transport minister Stewart Stevenson said the money will match the 2p increase in duty set out by the UK Chancellor in the pre-budget report in December.

Mr Stevenson said: "Large increases in fuel prices over the last 12 months have had an adverse effect on many of our businesses and communities.

"The bus industry has not been immune from these effects.

"In order to mitigate the impact of the fuel duty increase we are giving bus companies this extra money to help ensure that the costs are not passed on to passengers through increased fares."

The 4 million will be invested in the bus service operators grant, which provides a rebate of almost 79% of the fuel duty operators have paid.

Mr Stevenson added: "This investment is intended to help the industry drive down fare costs, encourage more routes and enable more older and disabled people to access these important services."

Scottish Conservative transport spokesman Alex Johnstone said his party had argued for the money as part of the budget negotiations.

He said: "I am delighted that it is to be paid and will help the hundreds of thousands of Scots who rely on their local bus services.

"As Scotland tries to cope with Labour's recession, every measure which can help has to be welcomed."

Gavin Booth, chairman of Bus Users UK, said: "Anything that helps to keep bus fares down in these difficult financial times is a great benefit to bus passengers."