An influential committee of MPs has warned ministers should carefully monitor the provision of locally-funded bus services, in the wake of deep council budget cuts.

The transport select committee, chaired by Labour MP, Louise Ellman, last week published a report also warning that current funding mechanisms were ‘discriminating' against community transport schemes – such as those operated by charities. Many authorities have already slashed budgets for local bus services, and are expected to pass on larger budget reductions once a 20% cut to the centrally-funded Bus Service Operators Grant (BSOG) kicks-in in 2012/13.