BUS services are likely to be axed or reduced as Durham County Council tries to stem the rising cost of subsidising operators.

The Labour-run authority's cabinet will be recommended tomorrow to cancel ten services and cut back more than 60 others - mainly in evenings and at weekends - to halt a projected overspend of £700,000 on the £3.5m budgeted for providing services that would otherwise be uneconomic for companies to run.

A report blames rising transport costs and a national trend in falling bus use and admits the move will lead to a further decline in passengers.

Acting director of environment David Miller says: "Rising costs in the bus industry, together with the national trend of a gradual decline in patronage, has a two-fold effect on the county council's secured bus service budget and the services we provide.

"Firstly, the cost of existing contracts rises above inflation each year and, secondly, the additional cost for transport operators means that some commercial bus services are no longer profitable to run, leading to pressure on the council to continue these routes through subsidy."

He adds that services have been assessed on their social need and that the proposed cuts will increase the 2.5 per cent annual fall in passengers by a further one per cent.

Among the service contracts to be cancelled would be the X6, from Langley Park to Chester-le-Street weekday peak journey, the 720 Durham to Stanley service on Sundays, and the 730, between Chester-le-Street, Urpeth and Birtley.

Proposed service reductions include the 709 between Newcastle and Stanley Monday to Thursday evenings, the 64 from the Arnison Centre to Sherburn village evenings and Sundays and terminating the 236 between Durham and Middlesbrough at Sedgefield in the evening.