Cheap bus fares cost Worthing £2million

WORTHING is having to pay an extra £500,000 a year to fund its concessionary bus fare scheme.

This brings the borough's total annual bus scheme liability to 2million out of a total budget of 16million.

And council leader Keith Mercer, complaining about this reassessment, told the Herald: "We are not a bus company, we are a council."

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Mr Mercer made his comment after the new borough council tax increase of 3.9 per cent was approved for 2009-10.

Borough's share

This represents a figure of just over 210 for a Band D property.

The budget is being set to raise 8,117,110.

A budget report to the cabinet said the current recession is having a "profound effect" on council finances in three main areas.

Area's hit

Increased demand for some services such as temporary housing.

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Falling demand and associated income (150,000 less) from services such as land charges and development control.

Lower interest rates resulting in less investment income (a drop of 180,000) for the council, far outweighing the reduced cost of borrowing.

On a plus side, the reducing inflation rate gives the council the opportunity to review the amount set aside for pay inflation, and reduce the allowance further from 2.5 per cent to two per cent.

In addition, the county council is expected to confirm a council tax increase of 3.99 per cent, and Sussex Police Authority is expected to announce its precept on February 12.

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Villages in the Worthing Herald area will be adding their own precepts to the county, district council and Sussex Police precepts.

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