THE first indications have been made that serious cuts are coming to rural bus services across Stockton borough.

The entire subsidy for unprofitable bus routes may be cut, it was revealed at a Stockton Borough Council’s Full Council meeting.

Several issues regarding the council's budget were raised at the meeting.

Bob Cook, leader of Stockton Borough Council, revealed that it was hoped that payments to councillors themselves will be cut by £130,000 next year.

However, there was a row at the meeting that the authority is paying a mobile phone company more than £250,000 a year even though it has an offshore account to enable it to avoid paying British tax.

Thornaby Independent councillor Steve Walmsley brought the bus subsidies issue up, asking: “Why are we putting money into the pockets of the bus companies? Some of them take £1m a week.”

Labour Coun Mike Smith, cabinet member for transport, explained the bus service was privatised in 1985, but authorities can subsidise unprofitable routes to ensure people without cars can still get around. The subsidy was £500,000 two years ago, but that had already been cut to £300,000.

He said: “That £300,000 is under review. The present Tory government seems to want to take all the options (on bus transport) we have left and reduce them to nothing.”

Coun Walmsley then asked about councillors’ allowances, saying: “For the life of me, I don’t know what some of them actually do.”

Bob Cook, leader of the council and Labour group, responded by revealing that reducing cabinet and select committee positions was to be considered along with general cuts in payments to save £130,000 a year.

He said it was only fair because council workers had not had a pay increase for four years and were only being offered one per cent this time.

Taking into account inflation, that amounted to a 13 per cent pay cut in real terms.

Coun Julia Cherrett, a Liberal Democrat, then brought up the Vodafone account which she said cost the council £256,000 a year.

She asked why the money was going to a company that had been in the news last year for avoiding corporation tax.

Coun David Harrington, said the company had not broken any law and said he understood the national Liberal Democrat party had an account with Vodafone.

Stockton Council’s cabinet committee will consider cuts to next year’s budget, far earlier in the financial year than is usual, at a meeting on Thursday, May16.