Lincolnshire taxi and bus firms that take children to school will come under increasing pressure, councillors warn

The taxi and bus firms which take many of the county’s children to school are likely to come under increasing pressure, council officers have warned.

Lincolnshire County Council is already £3m over budget for this programme this financial year because demand has soared.

There are fears that the firms they contract may struggle to deal with National Insurance contribution rises announced in the Budget.

The council is also facing higher demand to transport children with Special Educational Needs & Disabilities (SEND) and those who have been excluded from local schools.

The Audit committee discussed the challenges facing the sector on Monday (November 11).

Coun Susan Rawlins (Con) said: “We’re going to have to either restrict supply or pass on the cost.

“National Insurance is going to be unbelievably difficult, with tens of thousands of extra costs for small businesses.

“It will have serious budget implications going forward.”

The extra costs are described as a ‘significant strategic risk’ to the council.

Work is in progress to minimise journeys by asking children to share where possible, saving £2.5m over the last year.

Mike Reed, head of transport, said the authority was talking to taxi and bus firms about their challenges, and trying to anticipate problems.

“The pressure is simply due to the number of cases coming forward. The government is looking at possible legislation changes because it’s becoming such an issue.

“The availability is tricky because we’re at the behest of operators. They’re often very small outfits, and if a firm folds, it has consequences.”

Independent committee member Andrew Middleton said he had spoken to other councils who described these costs as ‘killing their budgets’.

Coun Peter Coupland asked why it had taken so long for the council to implement ‘straightforward’ initiatives to save money like sharing journeys.

Officers responded that costs had suddenly risen in the last few years, forcing the authority to act less like a social service provider and more like a business.