THE COLLAPSE of a bus deal which could cost council taxpayers in Southampton up to half a million pounds is due to come under the spotlight today.

Members of the city council's ruling Liberal Democrat Cabinet are due to consult on how to proceed with paying for and running "Urban Bus Challenge".

City transport chiefs were planning to open three new bus routes to some of the most deprived areas of Southampton.

They were due to buy four buses from Andover based Rohill Bodies to run the service - but the firm went into administration in August.

The city council had obtained £230,000 from various government agencies to buy the buses, including £100,000 of regeneration cash and £58,000 from the New Deal for Communities Fund.

With the collapse of the deal those agencies want their money back. To add to the council's woes, transport bosses have pledged to find an additional £230,000 over the next three years to set up the three bus routes.

The project was supposed to start in September with three state-of-the-art "shuttle" buses.

They would have linked areas in Northam, Millbrook and Shirley to the city centre and Nursling industrial estate, Test Valley Business Centre and Sainsbury's in Hedge End.

The council was due to contract one of the major bus operators in the city such as Solent Blue Line or First to run the routes, with the new buses paid for by the agencies. Now the scheme is likely to be put on hold until the council's budget meeting in February.