KEEPING unprofitable bus services on the road in County Durham will drive the transport budget £700,000 into the red unless action is taken, officials have warned.

For years, Durham County Council has heavily subsidised scores of rural routes and late night services. Otherwise, private bus operators would pull out because they are unprofitable.

But the council has now been forced to wield the axe.

It will cancel ten services and reduce about 67 - nearly all of them running at nights and Sundays and many serving villages and deprived areas - in the New Year.

The council's cabinet was told yesterday that operating costs were rising - particularly fuel - at above-inflation rates - and passenger numbers were falling, which is a national trend, despite efforts to encourage more people to use buses.

The annual fall in passengers is expected to be 2.5 per cent or more.

Now the services that are funded by the council taxpayer are facing cuts.

The county has some of the country's most deprived council wards and a level of car ownership that is lower than the national average.

The council's acting director of environment, David Miller, said the council was paying an extra £60,000 a month to run services that often attracted only a handful of passengers.

The cuts will affect 20 per cent of the county's total bus network.

Mr Miller said: "It is regrettable, but inevitable, that cuts will have to be made, but we will make them where the public make least use of the services we help provide.

"Most of the subsidised services to be cut will be lightly used evening or Sunday services so, in reality, the withdrawal of services will amount to less than two per cent of all passenger journeys in the county."

The council said it took into account factors that included the accessibility to key services such as health, education, employment and shopping, and the availability of alternative bus services, before deciding on cuts.

John Shuttleworth, councillor for Weardale, said: "They are talking about making the 764 between Consett and Wolsingham and Townfield a service where you ring up and ask the bus to pick you up

"These cuts will disenfranchise a lot of people in rural areas particularly, that's for certain. It will certainly disenfranchise the elderly, many of whom don't have cars.''

Details of the services affected are available from the council's Public Transport Unit, on 0191-383 3337.

Other councils in the region said they had no plans to reduce their subsidised services and a spokesman for North Yorkshire County Council said: "We are spending extra money on services, we are investing in rural bus services, not cutting back."