A COMMUNITY bus company has secured a £1m grant to expand its services.

Harrogate-based Little Red Bus Company is the first organisation of its kind in the country to secure such a large financial package.

The cash has come from the Government-backed investment fund, Future Builders England, which was established to help the voluntary and community sector deliver better public services.

The bus company offers lifeline services to elderly and disabled people who cannot use normal public transport.

It now plans to buy 12 buses, expand services, secure new headquarters, recruit extra staff, open depots at Bentham and Malton and introduce better computer systems.

Chief executive Lyn Costelloe said: "This is tremendous news, not only for current users, but for all those who are unable to access traditional public transport.

"Future Builders has recognised the quality of the services we deliver and will be looking to us to advise other areas on how they can follow our lead."

The new buses will be wheelchair accessible and should be in service by the autumn.

The grant will enable the company to expand its services to include rural school transport and helping people in remote areas to reach hospital and GP appointments.

Company treasurer Councillor Jim Clark said: "The Little Red Bus team have been working for more than two years preparing detailed business plans and financial projections. We are so excited that all the hard preparatory work has brought such financial success."

The company will move to new headquarters at Saltergate Business Park, on the outskirts of Harrogate, in September.

During the past year the company's buses travelled nearly half a million miles, carrying more than 100,000 passengers.

The company grew from a Dial-a-Ride venture in Harrogate. Last year it celebrated its 20th anniversary.