Teignbridge Council has said it is squaring up to the 'positive challenge' of finding an extra £1.7 million or more after pensioners flocked to take advantage of a new free bus travel scheme. The council had budgeted £1.1 million to cover its share of the first year's cost of the Devonwide Concessionary Fares scheme, which was introduced in April. But as early as January last year council leader, Cllr Alan Connett, warned there was a shortfall in the amount of cash the government was prepared to contribute despite the idea originating in Whitehall. Now, six months after the free travel began, latest estimates put the first year's bill at £1.5 million, some £400,000 more than expected. In 2007, with even more pensioners expected to take up the offer, the bill looks set to rise to £2.4 million, £1.3 million more than predicted and an amount which will require some creative thinking if the council is to stick to its aim of not passing on the cost to tax payers. 'We do have a challenge ahead of us but it is do-able even if it means we have a lot of work ahead of us,' said Cllr Connett. 'We are undertaking a programme of work to identify savings options and we anticipate we can meet the additional burden this year.' Cllr Connett said it was too early to predict where savings could be made but said capital expenditure on council priorities such as play parks was safe. He said his three years' leadership had delivered two council tax rises in line with inflation and one year with no rise at all. 'I do not underestimate the challenge and there is a piece of work to be done,' he said. 'But it remains my intention to not only bring in the budget on time next February but to deliver a rise in council tax that is no greater than the rate of inflation.' Talks with all the partners in the scheme are being arranged and it is intended to convey their findings to government. Cllr Connett described the financial challenge as a 'positive' one as it had been driven by the 'absolutely brilliant' scheme which allowed the over 60s to leave the car at home and enjoy free travel across the county. Only East Devon District Council had opted not to join but that decision, he said, had failed to have a significant impact on Teignbridge users. 'People are now using the bus instead of the car to visit places across the county and more day trips are being enjoyed,' he said. 'Using the bus not only helps with our concerns about global warming and congestion, but when people travel they will spend so it's also a boost for the economy.'