FIRST Group has been given the green light to make cuts to bus services in Edinburgh after complaining to the UK competition watchdog it has been affected by extended tram works in the capital.

The transport firm had given undertakings not to reduce the frequency of routes that competed directly with trains when it won the franchise to operate ScotRail passenger services in 2004.

However, in a ruling made earlier this month, the Competition Commission found closure of Princes Street for 10 months to repair faulty tram tracks had caused problems outwith the company's control.

However, it ruled out giving First unilateral powers to make changes to "controlled" routes and ordered it to reach agreement with the Office of Fair Trading to ensure it still complied "within the spirit of the undertakings".

A spokeswoman for the company said: "We welcome this decision which gives us flexibility to modify our bus services in the event of disruption caused by ongoing construction work on the Edinburgh tram and other similar roadworks," she said.

The routes most likely to be affected are the 38 to Stirling, the 27 and 28 to Bathgate and X24 to North Berwick, although other routes might also be altered, according to the Competition Commission.