Up to �200,000 could go from the public transport budget in order to limit council tax rises, the council has said.

The warning comes as bus operators First also announced it was cutting a dozen of its services in the county, mainly school services and contracts.

Up to 1.5 million passenger journeys a year could be affected.

Councillor Tim Carroll said: "Given the nature of the announcement being made by First we recognise that unveiling these proposals could not have come at a worse time.

"However we have to consider every option if we are to limit the level of our council tax increase which is becoming a burden on many of our residents."

If adopted, the cuts to the council services would not come into affect until April 2004.