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Last Updated: Tuesday, 20 December 2005, 16:40 GMT
Bus fares set to rocket next year
Bus passengers in Devon and Cornwall will have to pay up to 20% more to travel on First Group buses next year.

The company says the move is a direct result of increased insurance, payroll and fuel costs, which it claims are disproportionate to income.

This year two days were lost to strike action in a long-running dispute with drivers which has now been settled.

Fares will rise from 16 January with the biggest increases on urban routes which the company runs for profit.

Buses run under contract to Devon County Council and Torbay Councils are price-capped, and Mr Taylor says they could become unviable to run unless funding starts to meet growing costs.

"This is very much the last resort," he said.

"We did not want to have to do this and it does put a whole question mark over the level of funding going into rural routes.

"We do have concerns about the level of viability of some of the contracted routes, with the fare capping and the level of subsidy being made to the local authority which means that some of those routes may not be available in the future."


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