COUNCILLORS have backed plans which would see bus services taken back under local authority control.

Members of the North East Combined Authority (NECA) have voted in favour of introducing a quality contracts scheme which it is claimed could give a £272 million economic boost to the region over the next decade.

Metro operator Nexus, which is behind the plans, says the changes would lead to reduced fares, better services, less road congestion and a reduction and freezing of the subsidies that now go to the private bus companies.

An independent review board will now examine the proposal for a London-style system of bus regulation on Tyneside, Wearside and parts of County Durham.

The plans have been welcomed by Unite national officer for passenger transport Bobby Morton.

He said: “This could herald a revolution in the way bus services are managed and developed across the country for the benefit of passengers.

"For the first time, a council regulated network of buses could be established outside London since 1986.

“For too long a de-regulated bus system has failed to deliver for passengers and bus workers.”

However, the plans have been strongly criticised by bus companies, including Go North East, Stagecoach and Arriva, who instead want to run the network under a voluntary partnership agreement.

Kevin Carr, chair of the North East Bus Operators' Association (NEBOA), said bus companies were disappointed, but not surprised, at the decision to press on with the contract scheme.

He added: "Nexus has convinced the leaders to take a huge gamble, needing an £80 million contingency fund on top of £51 million in guaranteed funding every year. It’s not the best way of securing vital bus services for communities in Tyne and Wear."