Bus firm Arriva appeals to government over Tees Valley fare dispute

Arriva North East previously said the concessionary rates would not cover its costs

A dispute between a bus operator and a local authority mayor is being reviewed by the government.

Bus operator Arriva is appealing against the level of reimbursement from Tees Valley Combined Authority (TVCA) to cover concessionary fares. 

Tees Valley Conservative mayor Ben Houchen said a solution was needed that "works for everyone, not just greedy corporations".

Arriva said it would not comment while the appeal was ongoing.

The company lost responsibility for dozens of services across the Tees Valley earlier this year after failing to reach a funding agreement with the authority. 

It blamed TVCA for a 28% cut in the funding meant to reimburse operators for the cost of carrying people eligible for free bus travel.

Arriva said the proposed rates would not cover the costs of running a significant number of its services, the Local Democracy Reporting Service said.

Tees valley mayor Ben Houchen accused the bus company of being greedy

At the time, the company said the reimbursement rate fell "well below the levels paid by other authorities within the region".

TVCA said it had offered a "fair settlement" which was approved by two other operators in the region, Stagecoach and Go North East.

Mr Houchen said: "It is incredibly disappointing, but sadly not surprising, that Arriva North East are yet again putting their own interests above the needs of the people of Teesside, Darlington and Hartlepool by objecting to the traffic commissioner.

"We've fought tooth and nail to ensure the best possible deals when it comes to bus services in our region.

"There is cross party support for us to keep fighting for a solution which works for everyone, not just greedy corporations putting profit before passengers."

The Department for Transport (DfT) is now reviewing Arriva's appeal against TVCA's pay offer.

A spokesperson said: "The adjudicator is currently considering evidence from the operator and will issue a decision in due course."