A FAMILY-RUN bus firm has warned it may fold after county bosses delayed paying an £80,000 bill for a concessionary travel scheme.

The owners of Coast Links Express, based in Oswaldtwistle, said they struggled to pay staff due to the debt, dating back to a two-month period last year.

Lancashire County Council has blamed the delays on problems with paperwork submitted by the firm - but puts money owed at £60,000.

Coast Links transport manager Shireen Haydock said: "It has been hard and we have thought about calling it a day. The sooner we get the money owed to us, the better."

The company, formed 13 years ago, runs six services, with pick-ups across East Lancs converging in Blackburn before heading to Blackpool, Fleetwood, Morecambe, Skipton and Southport. A return ticket costs £10, with a concessionary rate of £5.

Last year a Government scheme introduced free local bus travel for the elderly, with councils reimbursing bus companies for lost revenue.

But as Coast Links Express buses cross district council borders, the company had to charge passengers a reduced £1 return fee until a final decision was made on charges.

This month they were told they could return to the original £5 fare. The company then put a claim in to the county council for £9 for each concessionary passenger.

However, it said Lancashire County Council failed to pay for claims put in from May and June last year.

Mrs Haydock, who runs the business with husband Stephen, said: "The disruption in fares has led to people accusing us of ripping them off as they didn't know the fare was originally £5. But the most difficult thing has been financial pressure put on us by the outstanding money.

"We only have six members of staff and it has been difficult to pay them. When the reduced fares were in place, we'd get hundreds at the station and we would have to hire coaches from rival firms - all of whom wanted paying by the end of the week."

A Lancashire County Council spokesman said: "A payment of £30,000 will be made next week and a further payment of £30,000 will be made on receipt of correct paperwork. This will complete requests for reimbursements provided to the council."