Decision Maker: Cabinet Member for Highways, Assets and Transport
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
To update the Cabinet Member regarding fuel
support payments which have been made to operators providing
contracted passenger transport services and to seek approval for
continued support for up to six months from 1 May 2022 to 30
That the Cabinet Member:
Approves the continuation of fuel support payments to operators for a period of up to six months from 1 May 2022 until 31 October 2022, as set out in paragraphs 4.3 to 4.6 of the report.
Notes payments will only be made to operators who contact the Council for support and the rate they are entitled to claim would be recalculated each month based on figures from the BEIS, as set out in paragraph 4.6 of the report.
Notes fuel support payments will not be made for any contracts issued after 1 August 2022 as operators have had the opportunity to include cost of living pressures into their tender submission, as set out in paragraph 4.6 of the report.
Fuel support payments will help operators to continue to provide contracted services at their tendered rate and reduce the risk of them terminating contracts earlier. It will also safeguard the Council from inflated tender prices for services that have to be retendered early as a result of any early termination of contract.
The Council is committed to ensuring value for money in everything it does but there has been a significant impact on transport operators who provide many statutory services for the Council. With this in in mind alternative options have been considered and are set out below.
Do nothing and expect operators to absorb the rising cost of fuel - This may result in an increasing number of operators seeking to terminate contracts early, or decline extensions, as services are no longer viable to operate. In these circumstances, the Council would have to retender contracts at short notice and tender submissions are likely to be inflated because of the rising cost of living and uncertainty with fuel prices. The Council would be locked into these prices for up to three years even if the cost of fuel decreases in the months ahead.
Offer a continuation of fuel support payments for six months from 1 May 2022 - This will help to protect existing contracted services and ensure the Council meets its statutory duty. Fuel support payments would only be made available to operators who contact the Council directly for help.
Publication date: 17/08/2022
Date of decision: 17/08/2022
Effective from: 25/08/2022