More money needs to be found by the Cambridgeshire and Peterborough Combined Authority (CAPCA) if it wants to continue funding vital bus services, a report has stated.
CAPCA re-tendered a number of services that were planned to be cut by Stagecoach earlier this year.
However, funding these services means the authority is expected to spend double the amount it had previously budgeted in the next year.
A report presented to the CAPCA Board meeting on November 30 said the authority will either have to find more money or face having to reduce the bus services it funds.
The report said it is estimated to cost £7 million to continue funding the existing network in 2023-24, double the authority’s planned budget of £3.5m.
Jon Alsop, chief finance officer at CAPCA, explained to board members that the authority would have been able to set a balanced budget before taking into account the additional costs of re-tendering the cut services.
A report presented to the board said pressure from supported bus routes “has resulted in a potential impact which cannot be met within the existing resources while maintaining a balanced position.”
It said due to the withdrawal of supported bus services from Stagecoach “citing unmanageable increases in costs from fuel alongside cuts in government grant funds, CAPCA had to undertake an emergency re-procurement of these routes.
“[This is] to avoid significant hardship on residents who rely on them.”
Board members heard that if CAPCA chose to continue providing the existing network, or chose to increase the number of routes or services, it would need to find additional funding.
The other option CAPCA has is to limit the bus services to within the existing £3.5m funding planned, but this would need the authority to reduce the number of services it is funding.
Contributions from the county’s councils, deliver “targeted efficiency savings”, use reserves as a temporary solution or introduce a mayoral precept were some ideas suggested to raise additional funds.
Councillor Lucy Nethsingha, leader of Cambridgeshire County Council, said it would be “very difficult” if CAPCA asked for more money.
Cllr Anna Bailey, leader of East Cambridgeshire District Council, said that “vital” bus services should be prioritised over some of the projects that may not be CAPCA’s primary focus.
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