Passengers face hike in fares on top of cuts to bus services

BUS passengers are facing another hike in fares next month as Lothian Buses seeks to tackle falling profits.

The council-owned firm has already announced cuts to several services in the Capital, as it attempts to balance the books amid high fuel costs and declining ticket revenues.

The company said it will increase fares "across the board", rather than simply raising the cost of adult singles, as it did in April, when fares went up from £1 to £1.10. The increases are expected to come into force on January 18, the same day as a series of cuts are made to services. Drivers have speculated that the cost of a single ticket could be set to rise to £1.30, but the firm insists it is still working out what the increase will be.

Lothian Buses has been hit hard by the economic downturn and the effects of falling passenger numbers caused by the tram works.

And the outlook for the ailing firm is set to worsen after it emerged the Scottish Government is unlikely to adopt measures laid out in Chancellor Alastair Darling's pre-Budget report, which would have seen a reduction in fuel duties paid by bus firms.

Ian Craig, Lothian Buses' managing director, said: "I can confirm that bus fares will be going up early in the new year – the same time we will be making changes to our services.The fares increase will be across all ticketing types, but we are confident they will still remain as some of the lowest bus fares in the UK."

Councillor Ian Perry, Labour's city transport spokesman, said the company needed more financial support from the city council. He said: "The council needs to take an overall strategic view of bus route closures and any price increases."

Last month Lothian Buses blamed "city-wide" roadworks and the economic downturn for a series of fresh cuts to services. Five more routes were withdrawn or cut back, with frequency reduced on nine more services. The news followed thedecision to cut 11 routes in October.

Passenger numbers and are down seven per cent on last year. The firm has also faced a steep rise in employment costs of £2.7 million, due to the need for more drivers for the extra buses it needs for the tram diversions.