VITAL bus services in Hyndburn could cost almost 20 per cent more to run if transport giant Stagecoach pulls out of the non-profit routes.

County council chiefs plan to keep a close eye on developments in the coming months.

Hyndburn Transport ran buses on 16 non-profit routes before the Stagecoach buy-out and Lancashire County Council helped to keep the services running with a grant of around £195,000.

The council is forced by government regulations to protect services which are considered socially important.

And the plan is to pass on the existing contracts to the new owners of Hyndburn Transport.

But if Stagecoach decide not to continue manning the routes the county council will be forced to look for a new operator. Any changes could lead to an increase in costs of at least £37,000 - a rise of almost 20 per cent.

Stagecoach moved into Hyndburn last month following months of speculation and is believed to have paid around £800,000 for the company.

The firm, which is also believed to be targeting other local bus firms, has promised to keep on 70 drivers but plans to close down the depot in Accrington.

A county council report reads: "Any reduction in competition which leads to increased costs to the county council, particularly at a time when budgets are under severe pressure, is clearly a cause for concern."

The takeover will be discussed by the county council public transport sub-committee tomorrow.

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