CUTS to the amount Torbay taxpayers contribute to pensioners' bus passes are being challenged.

Mayor Gordon Oliver is proposing a £400,000 reduction to the council's concessionary fares budget.

But Liberal Democrats have warned residents could be left stranded if companies do not agree to a further reduction in their reimbursement.

The council is in consultation with the six bus operators in Torbay — Stagecoach, Local Link, First, Country Bus, Devonian Motor Services and Riverlink.

Cllr Ian Doggett, who planned to challenge the proposals at the full Torbay Council meeting, wanted some £200,000 put back into the bus budget.

He warned bus operators may reduce or stop services which could lead many residents, workers and school children without public transport.

He said the bus operators were already coping with major increases in the cost of fuel, and the proposal represents a 20 per cent reduction in their Government grant.

He said: "We want £200,000 put back in because we know the bus operators are not happy with the situation, it could lead to companies running just the main services and dropping the rest."

He said the rate reimbursed to companies for each £1 fare had dropped from about 70p to 50p and would go down to 43.9p.

He said: "I think you have to think about 50p otherwise like Cornwall every single bus service could go out to tender with the aim of getting a cheaper rate, and it wont happen."