The Department for Transport (DfT) has created a £25 million fund to help charitable organisations provide minibuses for isolated and rural areas.

Announcing the fund, Transport Minister Patrick McLoughlin said he had seen the value of these programmes as an MP with a rural constituency. He claimed that the minibus services would “help keep rural communities alive and independent”.

Bill Freeman, Chief Executive of the Community Transport Association, applauded the scheme and said it would be of particular help to smaller operators, who, “serving their immediate neighbourhoods, struggle to put aside money to replace vehicles”.

The scheme aims to prioritise smaller providers, as well as those who serve the most isolated areas. Groups that already have a permit to run not-for-profit services will be able to bid for one vehicle each, as long as it is not used for any other purpose.

This is to prevent community transport groups from bidding on commercial bus contracts.