OFFICIALS at a North Yorkshire authority have warned of a potential funding shortfall with a Government plan for free bus fares for elderly and disabled people.

A sum of £350m has been allocated to fund the scheme nationally.

And a report from Harrogate Borough Council's head of transport John Burton, says it is likely there will be a significant shortfall in funding "even for the limited scheme that is proposed".

The Government announced free fares for people aged 60 and over, along with the disabled, would be introduced from April 1 across the country.

Mr Burton says it will be necessary to hold discussions with bus operators, establishing how the scheme will work if an operator makes claims for extra costs.

"These costs could even extend to the need to fund extra bus services if the existing route becomes full as a result of increased use made by concessionary fare users," he says in a report to councillors.

Talks are being held with other councils in North Yorkshire to see if there is continued support for the present cheap fares scheme to operate across the whole county, including York, rather than just on local bus services as proposed by the Government.