DURHAM County Council is considering running its own school bus service instead of using private contractors.

A pilot scheme using three American-style yellow buses will be run for pupils of a school in the Durham City area. If it proves successful the fleet could be expanded to other areas.

The scheme is an unusual twist at a time when the Government encourages councils to turn to the private sector for service provision.

The Labour-run council is concerned that the cost of hiring transport has soared from £7.5m to £11m in four years and is likely to increase further. It also said bus companies were having trouble recruiting drivers.

The scheme is likely to start in April, but the school involved has not been named.

The purpose-built 68-seaters have safety features including a higher than normal passenger compartment above the point of impact of most accidents.

They have three seat belts and several emergency exits, drop-down windows that children can escape through and enhanced brakes, lamps, mirrors and fuel tank protection.

Council leader Ken Manton said: " Our research project, which included tapping into the practical experience of two of only a handful of education authorities which already use yellow buses, showed there were other potential benefits.

"It's been found that yellow buses greatly improve pupil behaviour by giving a sense of ownership through allocating each young person their own seat and allocating specific areas of the bus to different age groups."

The buses will be driven by drivers from the council's social services department, which has its own bus fleet.

The trial scheme will be reviewed after two years.

Operation Coachman, the annual programme of checks by police and vehicle inspectors, usually reveals problems with some private school buses. Last year, 11 were ordered off the road.

A council spokesman denied this was a reason for the scheme, but said: "Cost isn't the only issue. Safety is a consideration and the fact that these would be brand new buses.''

John Shuttleworth, Independent councillor for Weardale, said he hoped the scheme would not cost jobs in the private sector.

"I don't think it can work in country areas like mine, where we don't have a problem, but it might pay dividends in urban areas.''