Funding Support in Scotland

Advice / Support

Funding is a significant challenge for Scotland’s Community Transport sector.

We know that a highly fragmented and competitive funding landscape can be difficult to navigate. We want to make sure you have the advice, information and support you need to identify, apply for and secure essential funding.

Here we summarise some of the major funders of Community Transport operators in Scotland today, as well as other potential sources of support and new ideas to consider to raise revenue:

Network Support Grant

The Network Support Grant (NSG) is a discretionary grant which has been in place since 1 April 2022, and is available to eligible commercial and community bus operators to support the maintenance of Scotland’s bus network for the benefit of passengers by keeping fares more affordable and networks more extensive than would otherwise be the case.

NSG is paid at 14.4 pence per kilometre per bus. This is intended to contribute to the costs of running services. You must comply with Fair Work First requirements, such as paying all staff at least the real Living Wage.

Groups operating a Community Transport service under a Section 19 or Section 22 permit are eligible if they are using a minibus or bus, but not smaller vehicles such as cars and MPVs. This is something we would like to see change.

You can find out more and apply for NSG here.

Your Local Authority

Local authority grants and contracts are a significant source of income for many Community Transport operators. Not all councils have a local Community Transport Fund, but a number do, such as Aberdeenshire, Highland and Perth and Kinross. There may also be opportunities to deliver, for example, schools transport in your area under a service level agreement.

You can find your local authority here.

The National Lottery Community Fund

The National Lottery has been a long-standing backer of Community Transport, supporting CTA members to deliver projects, maintain essential services and purchase vehicles. The National Lottery Community Fund has a range of funding programmes in Scotland which could be relevant for Community Transport operators:

Awards for All Scotland: A quick way to apply for smaller amounts of funding between £300 and £20,000 to create healthier, happier lives and a flourishing society;
Community Led: Grants from £20,001 to £150,000 to support community-led activity and wellbeing;
Improving Lives: Grants from £20,001 to £200,000 to help people facing challenging circumstances; and,
Cost-of-Living Support Scotland: Grants from £20,001 to £75,000 for projects to help support individuals, families and communities currently experiencing hardship as a result of the cost-of-living increases.

You can find out more and apply here.

Motability Foundation

Motability Foundation funds, supports, researches and innovates to help all disabled people make the journeys they choose. In recent years, it has announced major new programmes to invest a total of £50 million in projects and services which further this aim and benefit disabled people, including:

•    Community Transport Grant Programme
•    Wheelchair Grant Programme
•    Active Travel Grant Programme

You can find out more about the Motability Foundation’s grants available to charities and organisations here.

The Robertson Trust

The Robertson Trust, which funds, supports and champions those seeking solutions to poverty and trauma, is another long-standing supporter of Scotland’s Community Transport sector. A new Community Transport Fund is coming soon. You can see what they fund here.

Energy Saving Trust

The Energy Saving Trust has been used by Transport Scotland in recent years to distribute government funding for Community Transport, specifically the Plugged-In Communities Grant Fund, which enables non-profit operators to purchase zero-emission vehicles.

The funding for 2024/25 is now fully allocated. You can find out more here or see how we’re calling for further investment here.

Foundation Scotland

Foundation Scotland manage and distribute a wide range of community funds from a very range of Scottish, UK and global sources, including governments, corporations, businesses, charitable trusts and philanthropists. Some funds are available on a Scotland-wide basis, while others are local or regional. Some funds have broad themes, while others have specific objectives.

You can browse all of their available funding sources here.

Wind Farm Community Funds

Many parts of Scotland, especially in rural, remote and island communities, are geographically close to onshore wind farms, which are financially connected to funds set up to deliver benefits for the local community.

Contact your local energy generator or wind farm operator to see if you can benefit. Some wind farm community funds are managed and distributed by Foundation Scotland.

Section 75 Agreement

A Section 75 agreement is a legal agreement between a developer and a local planning authority. It requires the developer to help mitigate the impact or consequences of a new development on the local community and nearby infrastructure. They are sometimes referred to as ‘planning obligations’ or ‘developer contributions’.

For example, the firm behind a new residential development with a large number of family homes might be required, through a Section 75 agreement, to make a financial contribution to the council to cover the costs of expanding the local school or GP surgery to meet higher levels of demand.

Transport-related mitigations can be part of this, including Community Transport. When you become aware of a new development in the pipeline in your area, contact your council and the developer to see if your organisation could be a beneficiary of a Section 75 agreement.

Sponsorships

Sponsorships from local businesses or organisations can be a great way to generate new revenue for your organisation. The logo and messaging of your sponsor could be displayed on your vehicles, website, premises, leaflets and even uniforms.

However, if you are operating under a Section 19 permit, you need to be careful to make sure your sponsors are not incidentally profiting from your services. For example, if your local supermarket sponsored you to run a service transporting people from their homes to their store, this arrangement would be in violation of your Section 19 permit.

You can contact our Advice Service to ensure you are in full compliance with the law.

Full Cost Recovery

In addition to applying for financial support, it’s essential to ensure that you fully and properly recover all of your costs in your funding bid. You can find advice and resources on how to ensure this here.

Setting Up a Trading Subsidiary

In some cases, setting up a trading subsidiary might be helpful in supporting the long-term financial sustainability of your organisation. However, there are important considerations and restrictions to be aware of. You can access our toolkit in the Advice and Resources section of our website to help you make a decision about whether it’s right for you.

Scotland Spotlight

Every second Monday we send our Scotland Spotlight newsletter to our members in Scotland. Every edition is packed full of useful information and insights, including the latest funding alerts, opportunities and updates. You can sign up here.