Bus companies cheer continued subsidies

Bus companies were in the fast lane on Wednesday after the government maintained bus subsidies.The subsidies paid to bus operators such as Stagecoach, Go-Ahead and National Express will be reduced by 20% by 2014. Investors had been fearing much bigger cuts. All three companies posted strong gains.'Reducing bus subsidies paid directly to operators by 20% will save over £300m by 2014-15,' the government said in its report.'The government will also work with bus operators and local government to examine smarter ways of administering this subsidy to get better results for passengers and taxpayers.'