Changes to the Bus Service Operators Grant
With bus service operators having to contend with rising fuel prices and higher fleet running costs the opportunity to recover some of the fuel duty they have had to pay has been highly beneficial. Companies using biodiesel, bioethanol and liquefied petroleum gas were in 2006 able to gain the full sum of fuel duty back, while those utilising ultra low sulphur diesel fuel could recoup 81 per cent from the grant.
However, the Comprehensive Spending Review introduced by the government means that the reclaimable amount is no longer at that level, something that could make trading conditions increasingly challenging in a turbulent economy. Without the subsidy Fuel Prices will be much higher for organisations, something that has driven the fares paid by members of the public higher in some areas of the country.
Police forces facing a tricky balancing act?
The police and other emergency services are also having to contend with cuts of around 20 per cent - leaving them in the difficult situation of needing to slash costs in a manner that does not impact on their reputation with members of the public. This may prove particularly important as if forces are required to shed staff then concerns could rise about how the nation would cope if further incidents of widescale public disorder broke out. Critics have suggested the measures taken to cut costs have come too quickly and will be detrimental to communities.
Some forces are likely to find freeing up extra cash more difficult than others, although one method the government is hoping will prove successful is lowering the number of officers performing roles in offices and placing more on the frontline. It is thought this will allow them to continue tackling crime at the same level.Public sector spending: An issue impacting the nation.
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