RURAL bus routes are among those likely to be worst hit by a review of public transport funding, say campaigners.

A government review of the Bus Service Operators Grant could see a 10% increase in fares and many routes cut, claim pro-transport groups.

Britain’s local bus networks would face Beeching-style cuts if ministers withdraw direct national funding as part of their spending review.

Local authorities, bus operators and unions warn of big fare rises, service cuts and job losses if the Bus Service Operators Grant (BSOG) is scrapped.

Their fears are outlined in a letter to England's 533 MPs, including transport secretary Phil Hammond.

A decision could be made in weeks to cut the BSOG – formerly known as the Fuel Duty Rebate (FDR).

The grant rebates bus operators for the fuel duty they pay in running local registered bus services.

It also covers many rural, school and socially important services.

An Early Day Motion supporting the BSOG for what is the most widely used form of public transport has also been laid before Parliament.

Signatories to the letter include Stephen Joseph, executive director of the Campaign for Better Transport.

Scrapping the grant could do for Britain’s buses what the Beeching review did for the UK rail network in the 1960s, he claimed.

“In many areas, it could tip buses into a spiral of decline with fares rises, falling patronage and service cuts, all with impacts on some of the poorest in society.

“It would trap people into dependence on cars and add to local traffic problems. Pensioners could find themselves with free bus passes but no buses on which to use them.”

Shaun Spiers, chief executive of the Campaign to Protect Rural England (CPRE), said passengers in remote areas would be particularly hard hit.

“Cutting the bus grant may look like a quick way to slash spending, but the social, environmental and economic costs to the countryside would be huge.

“Those unable to drive could be forced to move out of rural areas or face isolation, while those living car-free in towns may be cut off from the countryside.

“Closed pubs and post offices would be joined by derelict bus shelters, the final straw for the vibrancy of many villages.”

Brian Souter, chief executive of the Stagecoach Group, said the company had attracted 15% more passengers to greener bus travel in the past five years.

Independent research shows that every pound spent on BSOG delivered up to £5 in wider benefits to local communities, he claimed.

“Scrapping it would mean a huge, regressive tax hike for bus passengers, would cost jobs and be bad for business.

“The worst impact would be on the pockets of the poorest in our society whose bus services are a lifeline. It would put many smaller bus operators and other suppliers out of business.”

The letter warns that cuts would be most acute in rural areas and on lower-used evening and weekend services. But urban services would be affected too.

One quarter of the 170,000 people employed in the bus industry are independent and smaller operators, many of whom run rural and services.

Reduced investment would also result in drastic cuts in new buses, with devastating consequences for UK manufacturers and suppliers.

Transport authorities and local councils, whose budgets have already been cut, would be unable to make up the funding shortfall.

All local-authority-subsidised services would become unprofitable, requiring either 10% more contract payment or service cuts.

It would also push up the costs of running many school services.

While buses still pay a significant amount of fuel tax, aviation pays none. The BSOG is equivalent to a £437m a year investment in buses.

In contrast, aviation gets a £6.5bn a year tax break by paying no fuel duty.