A BUS operator running services across the North-East expects revenues to continue rising, despite the impending effects of local authority budget cuts.

Stagecoach Group, which operates across Teesside, Hartlepool, Sunderland and Newcastle, says its regional bus division saw revenues increase 4.8 per cent in the 48 weeks to March 30.

Like-for-like passenger numbers grew 1.5 per cent.

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The company's 8,000 buses and coaches transport 2.5 million people nationwide every day.

Bosses said commercial revenue was the main contributor to the growth, but revealed they don't expect to make significant short-term concessionary and tendered revenue increases as local authorities scale back reimbursement amounts and bus tenders.

Its London-based UK Bus arm also saw revenues lift 4.6 per cent, with its UK rail rising by 4.5 per cent.