Some bus fares could rise by 10%, many routes could be cut and many jobs lost if a government grant system falls victim to cuts, it has been warned.

Local authorities, bus operators, transport campaigners and unions have written to Transport Secretary Philip Hammond.

They fear that a decision to scrap the Bus Service Operators Grant (BSOG) which rebates bus operators for the fuel duty they pay in running local registered bus services could be made in weeks. The grant also covers many rural, school and socially-important services.

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