Don't forget the 170 is the only bus up Chatsworth Road in the evening and on Sunday. It's hard to justify a 2-hourly service on one of the main roads out of Chesterfield town centre - although for a long time Stagecoach ran a sometimes one, sometimes 2 hour service when they had the 91. Extending it through to Bakewell is maybe more questionable - that said, does it actually extend? The timetable shows hourly departures from Bakewell, but the 19:15 and 21:15 from Chesterfield Royal are shown as only running to Holymoorside. Unless they run light to Bakewell...BSIP has not been well managed by DCC at all. For example, out of the 55 and 170, which route covers greater population areas? The 55. So why on earth is that only funded to be 2 hourly (1 bus) in the evening but bizarrely they are paying for an hourly 170 (2 buses)?
I wonder if a timetable is viable giving an hourly service between Holymoorside and say Clay Cross, with 2-hourly extensions to Alfreton and Bakewell? Maybe fund an extra evening run or two on the Comet between Chesterfield and Alfreton to fill some of the gaps?
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I think my two objections are that while funding is maybe justified, BSIP is the wrong 'pot' and using it is taking away from services people need. The Sightseer is purely leisure, not an essential service.Whilst I agree it could be seen as a waste funding peak sightseer, I believe the red route was operated commercially last season, so could be seen as a success.
The other objection is the length it was funded for - I believe you are correct that the variation of the Red bus last year was commercial, but only ran until the end of October, not until Christmas. Testing the waters as to whether an open top service would be a success doesn't need it running in to the depths of winter.