§ Mr. David TaylorTo ask the Secretary of State for the Environment, Transport and the Regions what plans he has to make changes to the rules of rural bus subsidy grant. [146028]
§ Mr. HillWe have decided in principle that the rules of Rural Bus Subsidy Grant should be changed to give local authorities more flexibility in its use. We propose to allow authorities the freedom to use up to 20 per cent. of the grant on support of existing rural bus services. Authorities will also be able to use the grant to provide ongoing support for services initially supported under the Rural Bus Challenge scheme. These changes will involve amendments to the current rule which prevents use of the grant for services which were already being run as at 1 May 1999.
We will be consulting the Local Government Association on the details of this change and the monitoring arrangements which will be involved with the intention of new rules being in place for the coming financial year.