Government transport bosses have announced a new funding plan for the free bus travel scheme that will put a stop to its drastic underfunding in Chesterfield.
From the new financial year, the costs that councils incur as a result of the concessionary travel scheme will be entirely met by the Government after a Parliamentary Committee agreed it should be fully funded.
The move means that Chesterfield Bor
ough Council will not have to find the £1.84m it was forecast to pay in 2010/11.
Chesterfield MP Paul Holmes, who has lobbied several Government transport ministers about the unfairness of the scheme's funding, said that the announcement was good news for the borough.
"This is the successful conclusion of our two-year long campaign to stop the Government bankrupting Chesterfield," he said.
"This is not extra money for the council to spend but it does mean that it will not, this year, have to rob yet another 11 per cent of its annual budget to pay the bills for the Government's scheme."
Since 2008, the council has had to find £3.3m to meet the costs of free bus travel, resulting in money being taken from its reserves, service budget cuts and 35 jobs being lost.
Mr Holmes has vowed to continue to fight to get that money back by lobbying the Department for Communities and Local Government.
Cllr Ray Russell, leader of Chesterfield Borough Council, added: "It's good to get the money back for the concessionary fares for 2010-11 but it's totally unfair that council tax payers should have to contribute to the £3.3m shortfall in 2008-2010 and we will continue to lobby to get back this money from the Government."
