If the subsidy's are cut by the alleged 20%, how long will it be before the free bus pass is looked at, as council budgets are to be reduced also, and its them who fund it, not central government.
Blood Chris your right its cheaper in a taxi,
First bus run a circular service from Galashiels town centre to the largest housing estate just over a mile away, every 20 mins the fare is £1.10 per person or free with bus pass, but this service stops dead at 6.30 PM
So from the bus station to a stop near my house costs 4 punters £4.40 in a bus, in a taxi without any discount its £4.00 to the same stop.
I can not only see reduced services but older buses running even longer as the bus company's will not be so quick to replace ageing stock.
Just as I dont know

does the price of a bus ticket contain VAT????, if it does there will be an automatic fare increase in January due to the increased VAT on fuel
Vehicles that carry 8 or more passengers are zero rated for VAT. Which means that the passengers do not pay VAT but the bus company can claim back all the VAT associated with the running of the vehicle.