THE council has sought to offer reassurance about the sustainability of the Dial a Ride disability bus service after concerns were raised about its financial future.

A part-year reduction of £100,000 in the service’s budget was announced in February as part of continuing cost-saving measures.

The current contract between Dial a Ride and Swindon Borough Council expires on August 31 and negotiations are underway to agree a new deal.

But now there are fears that the cut in funding could end up being more than originally stated.

Coun Derique Montaut, (Lab – Lidene, Eldene and Park South), said: “In the cabinet report it states a £100,000 cut which would be a third of their funding.

“But the council is unwilling to state with certainty that a Dial a Ride service will definitely get two-thirds of the funding they currently receive.

“The Dial a Ride service offers a lifeline for our town’s most disabled people and our elderly, stopping them living in isolation.

“Cabinet’s proposed cuts could in effect mean the ending of the Dial a Ride service we know today.”

The council has indicated that as the £100,000 is a part-year saving, any future full year reduction would work out as more than that.

Last year, Dial a Ride received £310,000 and Coun Montaut has suggested that any significant reduction from that level could result in closure.

In seeking to reassure service users that a reduction in funding doesn’t mean a reduction in service, the council has pointed to Dial a Ride’s company accounts to indicate their ability to absorb any cuts.

Last year they ran at a surplus of almost £59,000 and the year before the surplus was over £61,000.

They also have more than £800,000 in reserves however it is understood that only around a quarter of that is cash with the rest made up of assets and other non-accessible capital.

Given the unprecedented financial climate in which public services are now operating, there will be pressure on community organisations with documented reserves to shoulder some of the burden, however Labour claims that the extent of the funding reduction would make that impossible in this case.

Coun Dale Heenan, cabinet member for sustainability, highways and transport, said: “The council is currently undertaking confidential discussions with Dial a Ride about extending the current contract by a further two years.

“Everyone fully appreciates the work of the volunteers and staff, and the value of the Dial a Ride service to its passengers.

“This is why nothing rash is happening, even though the original part-year £100,000 funding reduction was approved five months ago.

“Dial a Ride published its annual report last month and it highlights how the company has £809,942 sitting in reserve bank accounts.

“The council will continue to support transport for people with disabilities, and it would not be appropriate to comment further while negotiations continue.

“This is a very sensitive topic, and I really hope there is no scaremongering taking place. I want to see a successful conclusion, but if no agreement can be reached before August 31 then the contract may end, and alternative solutions will be sought.”