Because of a funding squeeze, as from next month (August), the number of vehicles will be cut from five to just two.

Fares and membership of the scheme will be increased, and the service will be restricted to the over-80s, the blind or partially-sighted and those with a long-term limiting disability.

At a meeting of East Lindsey executive board, Coun John Upsall said he was very disappointed by the new three-year deal which has been worked out by the district council and Lincolnshire County Council.

Under the terms, the two buses will only cover 85,000 miles between them - 35,000 for the Skegness area and 50,000 for the rest of the district.

He feared this could be inadequate provision, particularly as the service will be open to holidaymakers, including those who stay in caravan parks for as many as 11 months a year.

"That's not fair to legitimate residents who pay council tax," he protested.

Agreement came from Coun Colin Davie who said it was time local authorities 'got to grips' with a situation whereby long-staying holidaymakers were able to derive benefit from transport, health and other services without paying a penny to the public purse.

Coun Neil Cooper described the revised Dial-a-Ride arrangement as a 'cut-to-the-bone' service, but he said it had needed overhauling.

"It was ludicrous that buses were sometimes making journeys out of the district and county with just a single passenger on boad," he maintained.

"What is required is better co-ordination with complementary schemes such as Call Connect and the community car service operated by volunteers."

It was agreed officers should be instructed to re-open negotiations with their county council counterparts with a view to ensuring only East Lindsey council tax payers are entitled to use of the service.