A COMPROMISE has been reached in the row over free bus travel for pensioners in Lancashire.

Pendle Council had withdrawn from a county-wide agreement over the administration of the travel scheme, planning to keep the £400,000 surplus and spend it on other services, claiming the money was not ring-fenced.

This left Blackpool, Wyre and Fylde councils facing a possible combined deficit of £1.8m after a shortfall in Government funding for the scheme.

Pendle councillors were accused of breaking a ‘gentleman’s agreement’ which would have reduced that deficit by £1.2m.

However, a compromise has now been reached which will see the combined Fylde coast deficit slashed by almost £250,000.

Under the new deal, which was unanimously agreed by Lancashire council leaders, those with surpluses will give up some but not all of their left over cash.

County Coun David Whipp, said: “We’re prepared to compromise but not to the extent of local people losing out big time.”