Leicestershire County Council currently pays £160,000 a year towards the service but has now pulled this funding.
It has been announced that the 159 bus service between Hinckley and Coalville is going to be scrapped in the new year.
Roberts Travel Group who operates the service is stopping the route as they have had the funding cut from Leicestershire County Council which makes it no longer financially viable.
A spokesperson from Roberts Travel Group, said: "It is with regret that we must inform you that after Saturday 25th February 2023, the 159 bus service between Hinckley and Coalville will no longer be in service.
We have been notified by Leicestershire County Council that they are withdrawing the financial subsidy that supports this service. Sadly, with no other funding available, this service is no longer financially viable.
We would like to thank our loyal customers for their use of this service over the years."
The 159 bus service stops in villages such as Market Bosworth, Newbold Verdon and Stapleton.
Cllr Joyce Crooks said “The news that the County Council are withdrawing the Bus Subsidies to our local 159 bus service is yet another devastating blow for the rural areas. Meaning that from February the service will cease if we do not campaign hard to save it.
“This bus service is vital to those residents of our villages who use it to travel to work, College, school and Shopping, at a time when we are campaigning to cut carbon emissions. The consequences will be more cars on the road, job losses for those workers who do not have alternative transport and for villages like Stapleton will not have any public transport at all.“
Leicestershire County Council currently subsidises the service by £162,260 a year – which equates to £532 a day.
In the new year they plan to bring in a demand responsive transport service for people who live more than 800m away from an alternative bus service:
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Stapleton & Woodland Nursery to Barwell - 3 return journeys per week.
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Cadeby to Market Bosworth - 2 return journeys per week.
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Junction of A447 & B582 to Ibstock - 1 return journey per week.
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Hugglescote to Coalville - 2 return journeys per week.
Councillor Ozzy O’Shea, cabinet member for highways and transport, said: “The stark reality of the financial situation facing councils is that we’re not able to step in and subsidise all commercial services, which like this service often require subsidies in excess of £160,000 a year.
“Unfortunately patronage on this service wasn’t sufficient to make it financially viable for the operator. Most villages on the route will have access to other buses services but from February, we will be taking action to support residents who are not close to an alternative service and putting a flexible, bookable, demand responsive transport service in place to make sure people can make important journeys.
“We’ve worked with our MPs to set out the tough choices ahead and how losing out on Government cash to bolster our bus network has hampered efforts to support the industry. This has secured a meeting with the Chancellor in the New Year where we’ll be raising the importance of a better, more sustainable funding deal from Government for buses and other vital services.”