PRIVATE bus firms are pocketing increases to public funding while services suffer, said Unite today as the spending watchdog found governments’ improvement bids have failed.

A National Audit Office study covering England outside London found that rural and suburban areas face a “cycle of decline” whereby services are withdrawn because of low demand, leading to a further fall in passenger numbers and more cuts.

It said that the sector’s commercial viability has weakened as revenues have fallen and costs have risen.

Unite national officer Wayne King said: “Unite is unsurprised to hear of these findings. We have seen it in the decimation of rural bus services, hitting communities that need regular quality bus services the most.

“While public funding has provided profit for private companies communities are left in travel poverty with poor pay and conditions for workers in the sector. There has also been an increase in travel poverty among passengers.

“It is clear the bus sector urgently needs a major overhaul.”