A plan to halve funding for pensioners’ bus passes in London has been condemned by local authorities in the capital.

The Government could strip London of £30 million in support for free travel for the over-60s and the disabled next year after a review of subsidised travel announced yesterday.

In contrast, cities such as Derby, Nottingham, Cambridge, Chesterfield and Exeter will receive millions of pounds of extra funding.The proposals were criticised by the London boroughs, whose free travel grant would be cut by 49 per cent. Opponents warned that services provided by local authorities might be cut, or council tax raised as councils struggle to fill the funding gap.

City Hall voiced outrage at the decision by Sadiq Khan, the Transport Minister, to redraw a funding agreement for concessionary travel. “It is quite simply outrageous for the Government to announce it intends to reconsider funding arrangements that were already agreed and we will be seeking urgent clarification from the minister on how this might affect Londoners,” Kulveer Ranger, the Mayor of London’s transport adviser, told The Times.

Merrick Cockell, chairman of London Councils, which represents all 33 councils in London, said: “The Government’s decision at this late stage to alter the deal already agreed is absolutely stunning and will be met with anger across the capital. Boroughs have already budgeted for this funding and now London is facing having the amount of funding it was promised almost halved.”

Dozens of local authorities around the country have already had to cut services or raise council tax to reimburse bus companies operating the Government’s free nationwide travel scheme.

They successfully lobbied for an overhaul of next year’s £223 million subsidy for free bus travel. Yesterday the Transport Minister published proposals to redistribute money from cities that had “received too much money” to those facing a deficit.

“Ensuring this extra money is distributed fairly and to where it’s needed most is critical to the continued success of the scheme,” Mr Khan said.

London is the big loser from the proposals. A spokeswoman for the capital’s travel watchdog said: “London TravelWatch would be concerned at any reduction of funding for concessionary fares. Not only will it affect elderly and disabled people who often rely completely on public transport, but it could also affect the number of bus services provided if funding is decreased. Concessionary fares like the Freedom Pass in London can be vital lifelines for the elderly or disabled.”

Westminster City Council said that it would have to find an extra £1 million and raised concerns over the funding of a scheme that offers one million pensioners and disabled free travel passes in the capital. “If these cuts do become a reality it would raise serious questions for every single local authority in London as to how the scheme is funded,” Danny Chalkley, Westminster Council’s cabinet member for City Management, said.

The plans are out for consultation until December 30.

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