The LA is strictly following the letter of the legislative requirement to get the child to and from their statutory school entitlement; the LA is probably concerned about setting a precedent.  Strictly speaking this is a parental responsibility, but given there is no cost difference at the moment (these things can change e.g. change of routes, new child moves in), it would be worth appealing to whoever is in charge of SEND Transport.

Thank you for your replies. we are currently negotiating with the LA!