Oxfordshire County Council will lose out to the tune of £500,000 because of a drop in bus use.

Buses at Carfax, Oxford

The number of people using buses fell three per cent between October and March.

The county council had committed itself to increasing bus use by 10 per cent over three years in an agreement with the Deputy Prime Minister's Office.

It described the reduction in passengers as "a worrying trend" and promised "strong measures" to try to persuade people to get back on buses.

A report for the county council's cabinet on Tuesday said: "We are not on target for meeting the national target or our challenging Public Service Agreement target.

"A significant drop was recorded for one major operator, contributing 49 per cent of the overall total."

It added: "A key factor remains the failure of Government to implement camera enforcement legislation to allow us to keep bus lanes clear."

The council's sustainable transport manager, Noel New- son, said that buses were victims of the congestion they were supposed to ease.

He said: "We know there are operational difficulties and areas where bus operators say they are unable to operate reliable services. It does not encourage people to use services."

He believed increased fares and the reluctance of shoppers to return to Oxford following the Cornmarket debacle were also factors.

The council said it would be relying on better marketing to encourage greater public transport use, as well as the introduction of free parking at park-and-rides sites.

The failure to boost passenger numbers means the council loses out on a reward payment worth more than £500,000.

Nigel Eggleton, commercial director of Oxford Bus Company, said: "There has been an overall drop in bus travel into the city centre for all operators."

Martin Sutton, managing director of Stagecoach in Oxford, said: "We have had a bad six months in terms of roadworks on Abingdon and Cowley Roads."

The number of passengers in 2004-5 was 34.49m compared to 34.77m, a drop of 280,000 compared with a year earlier.