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• The National Audit Office has called on the Department
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of Transport to review its policy on fuel duty rebate for local bus services.
An NAO report says the present system offers a blanket subsidy without measurable targets.
The DTp is to give evidence to the House of Commons public accounts committee next week.
Fuel duty rebate on local bus mileage amounted to 2135 million in 1987-1988: it is expected to be around £155 million in the current financial year. The DTp says it is delighted to see new services being introduced and will pay whatever is required this year, but promises to give the NAO report close attention.
The Bus and Coach Council points out that all decisions about commercial services and tendering are based on the assumption that fuel duty rebate will be available. It warns that withdrawing it would be "disastrous".