The closure of a bus depot has been labelled a fresh blow to the region's rural public transport.

Arriva has announced that it will close its depot in Richmond, North Yorkshire, from March 4.

The firm will continue to run services between Darlington, Richmond and Catterick.

However, Arriva is in discussion with North Yorkshire County Council about the future of services from Richmond to Barnard Castle, in County Durham, and Keld, in Swaledale.

It is likely the county council will need to find a new operator, if the services are to continue.

Steve Noble, managing director of Arriva North East, said: "This has been a really difficult decision, but a necessary one. "It in no way reflects on the performance and commitment of our people at Richmond depot.

"Cost increases - including fuel, labour and insurance - have a significant impact on our business and, like any other business, we do need to react to this."

Arriva employs 35 people at the depot.

Most employees will be offered a job in Darlington, although some compulsory redundancies are expected. Staff were told about the closure yesterday morning.

Most of the services set to be axed by Arriva are subsidised by North Yorkshire County Council.

The authority is already reviewing bus services in the county in a bid to address spiralling costs.

Richard Owens, the county council's head of integrated passenger transport, said the future of the threatened services would be looked at in this review.

He said that new operators would be sought in the short-term.

Coun John Blackie, county councillor for the upper dales, said: "I will be pressing for an alternative service to make sure some of the remotest areas in the country are not left high and dry."

Barnard Castle mayoress Marie Yarker said it would be a blow to the rural community if the Richmond to Barnard Castle was to be axed permanently.

She said: "It's a well liked route, especially with tourists during the summer.

"People like myself, who don't drive, rely on these services."

In November, Durham County Council announced it was cutting its bus network by four per cent in a bid to stem a £700,000 overspend.

Some rural services have already been axed, while the remainder will stop in coming weeks.

The services underthreat following the closure of the Richmond Arriva depot are 29, 30/30A, 31/31A/31B,47, 70, 72, 73 and X79.