MSPs have backed proposals to allow local authorities to run their own bus services.
The Holyrood rural economy and connectivity committee approved amendments to the Transport Bill yesterday.
The move would allow Dundee City Council and other authorities in Scotland to run bus services directly, or through an arms-length company.
However, the bill could still be overturned.
Green MSP John Finnie said the proposals would lead to better services for bus users across Scotland.
Mr Finnie said that the move would allow councils to meet the demand for bus users better, and provide “cleaner, affordable and more reliable services”.
Lothian Buses in Edinburgh is currently the only council-run bus company in Scotland.
It was established before deregulation in the 1980s and is owned jointly by Edinburgh City Council, Midlothian Council, East Lothian Council and West Lothian Council.
A Scottish Government spokesperson said: “The Scottish Government’s amendment will allow local transport authorities to set up a companies which would operate in a similar manner to Lothian buses, providing local services within a commercial market.
“Transparency will be key with local transport authority companies operating in the same way as any other commercial bus operators and subject to all the usual registration and licensing requirements.”
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