Free bus pass schemes could leave local authorities with a £30m shortfall, council leaders have claimed. The LGA have called for an urgent meeting with communities secretary, John Denham, and transport minister, Sadiq Khan, after warning up to 40 councils were likely to end up with deficits for running concessionary bus schemes. The LGA confirmed 10 councils had reported an £1m shortfall. Months of negotiation between councils and Whitehall have reached an impasse, despite local authorities having to find extra cash on top of the special grant set aside to fund nation-wide bus travel for the old and disabled. The LGA is calling for contingency payments of up to £30m to be included in the 2010/11 settlement. LGA chairman Margaret Eaton said: ‘Councils urgently need to know how much funding they can expect before they take decisions on budgets for the next financial year. ‘This is now an urgent issue which we have not been able to resolve through other channels.'
