More bus links will be provided in rural areas

Mr Blair told MPs better transport was crucial to reducing unemployment.

"There is no doubt that unemployment has fallen substantially in recent years," he said. "But one of the biggest difficulties, particularly in rural areas, is people being able to get to work."

Labour MP Paddy Tipping said the cash would boost services like the Boughton Boomerang and Sherwood Sweeper buses.

Transport choice

He said the services played a vital role in maintaining employment levels in areas such as former coalfields.

The Department of Transport announced a total of £20.3m would be awarded to 42 projects, following the 2003 Rural Bus Challenge competition.

Public transport minister Tony McNulty said: "Once again this demonstrates the government's commitment to improving transport choice."