BUDGET coach operator Megabus is to suspend services in England and Wales by Sunday, it has been confirmed.

But the no-frills coach firm, owned by Perth-based transport giant Stagecoach, will continue to run its Scottish routes.

The company says the different rules are down to the reasons customers use its services in each country.

A Megabus spokesman said: "A number of customers use Megabus services within Scotland to travel to and from essential work, for example NHS workers.

"Therefore, in Scotland, an agreement has been made with the Scottish Government to continue running coach services."

Passengers whose journeys have been cancelled will be refunded, the company says.

Mark Venables, managing director of Megabus, said: "We're sorry for the inconvenience this will cause you.

"We firmly believe that the decision to temporarily suspend services is the right one based on the current unprecedented circumstances, and I hope you understand the reasons for our decision to stop running services in England and Wales.

"We hope to be able to welcome you back on board very soon."

Megabus launched in the UK in 2003 and links 90 locations, carrying more than four million passengers per year.

The news comes after National Express, the UK's largest operator of scheduled coach services, announced that its operations will be suspended after Sunday.

It said it had kept a limited network of services running to help people with essential travel but this is "no longer viable".