BUS fares will rise and ser-vices will be cut around the country because of changes to a Government grant scheme which could slash some bus company revenues by as much as 40%, an industry group said.
Last month the Scottish Government said changes to the Bus Service Operators Grant (BSOG), designed to "encourage fuel efficiency and redistribute benefits, principally to rural areas".
However, the Confederation of Passenger Transport (CPT) said the changes amount to a 20% cut in the grant which, combined with a new way of calculating the payments, will mean fare increases and service cuts.
Bus companies in Scotland have already raised fares and altered services, citing the changes as one of the key reasons.
CPT director for Scotland George Mair said: "What you're seeing is the operators repositioning their business to deal with the impact of the changes."
Transport Minister Keith Brown said: "Despite the challenges of real-terms Westminster cuts, bus funding for concessionary travel and grants such as BSOG have been maintained over the spending review period at just under quarter of a billion pounds (£248.5 million)."
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