How to set up a community bus service

What is a community bus service?

A community bus service is a local bus service you run with a minibus.

  • A not-for-profit village bus service
  • Runs under a Section 22 Community Bus Permit
  • The timetable must be registered with the Traffic Commissioner
  • You can charge fares and accept concessionary bus passes
  • Passengers do not need to book in advance to use the service

To see the difference between running a minibus under a Section 22 Community Bus Permit and the Section 19 Standard Permit for pre-booked group travel see our Factsheets.

When is a community bus service suitable?
  • Your service will be available to everyone (local people, walkers, tourists)
  • Passengers do not need to pre-book their journey
  • You want to offer free travel to people with concessionary passes
  • You will have enough passengers to make the journey worthwhile. If you are replacing a commercial bus service, find out how many passengers used it

If you only want to provide transport for registered passengers in your community, see how to set up a regular minibus service.

Set up and management

To run a community bus service, you will need:

  1. A minibus (owned or hired). Guidance on buying or hiring a minibus.
  2. Drivers, paid or voluntary. A pool of trained volunteers helps reduce costs.
  3. A treasurer to manage finances and reporting.
  4. A service coordinator to plan routes, timetables, and driver rotas.

You could also consider training a volunteer as a MiDAS Driver Assessor/Trainer to support ongoing driver development.

Typical costs and income

General operating costs include:

  • minibus hire or purchase
  • insurance and fuel
  • service registration fees
  • promotion and publicity
  • administration and volunteer expenses

Ownership costs (if buying a minibus) include:

  • MOT, insurance, and road tax
  • servicing, repairs, and safety inspections
  • long-term replacement planning

Sources of revenue:

  • passenger fares
  • concessionary fare reimbursement
  • fuel tax rebates via the Bus Service Operators Grant (BSOG)
  • income from one-off trips (eg. seaside, cinema)
  • hiring the minibus to other local groups
Legal requirements

To run the service you have to:

  1. Operate under a Section 22 Community Bus Permit.
  2. Register your timetable and route with the Traffic Commissioner.
  3. Ensure drivers meet licensing and training requirements.
  4. Maintain vehicle safety and compliance with transport regulations.
Next steps
  1. Identify demand. Survey local residents to understand travel needs and potential usage.
  2. Plan your budget. Estimate costs and identify funding sources.
  3. Design the service. Agree on routes, stops, and a timetable that meets community needs.
  4. Register the service. Send your timetable and route to the Traffic Commissioner.
  5. Obtain a vehicle. Buy or hire a suitable minibus.
  6. Recruit and train drivers. Engage volunteers or paid drivers and ensure they are properly trained.
  7. Launch and monitor. Trial the service, gather feedback, and adjust as needed.