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The Isle of Wight branch of the Campaign for Real Ale
PSV Licences for Pubs
The Problem with PSV's

Why It’s Difficult for Pubs to Run a Bus Service

On the face of it, a pub running a small minibus to bring customers in and get them home safely sounds like common sense. In practice, however, the legal framework for Public Service Vehicles (PSVs) makes this extremely difficult for small businesses such as pubs.

1. “Hire or Reward” – Even When It’s Free

Under UK passenger transport law, a service is treated as being run “for hire or reward” if it is connected to a profit‑making business, even when no fare is charged. If a pub offers a courtesy bus, that link to a commercial activity means the service is treated in law like a bus company, not a casual favour for customers.

2. PSV Operator’s Licence Requirements

Once a service is classed as “for hire or reward” and the vehicle carries nine or more passengers, the operator must hold a PSV operator’s licence. Even the most limited (restricted) licence brings with it:

  • Formal application and approval processes
  • Ongoing compliance with PSV regulations
  • Limits on the number and type of vehicles

These requirements are designed for full‑time bus and coach operators, not small rural pubs.

3. Heavy Maintenance and Record‑Keeping Duties

PSV operators must meet professional standards of vehicle safety and maintenance. That includes:

  • Regular safety inspections and servicing
  • Detailed maintenance and defect records
  • Suitable operating centres and facilities

For a small pub, finding the time, expertise and money to meet these obligations is a major barrier.

4. Professional Driver Qualifications

Drivers of PSVs generally need higher‑level entitlements and, in many cases, professional qualifications. Pub staff are understandably reluctant to take on the extra training, responsibility and potential legal liability that come with driving a licensed PSV, especially if it is only for occasional courtesy trips.

5. Financial and Administrative Burden

PSV operators must also demonstrate adequate financial standing to maintain vehicles safely and run the service properly. Combined with the paperwork, inspections and compliance checks, this creates a level of bureaucracy that is simply disproportionate for a small rural pub trying to run a modest courtesy bus.

6. A System Not Designed for Pubs

The PSV licensing system was built around bus and coach companies, not community pubs or village venues offering occasional transport. As a result, pubs that might genuinely improve safety by offering a lift home are caught by rules that were never really intended for them.

In Summary

To run a pub bus legally under current rules, a small business must effectively behave like a professional bus operator: holding a PSV licence, maintaining vehicles to commercial standards, keeping detailed records, employing suitably qualified drivers and proving financial standing. For most pubs, this is simply not realistic, which is why so many potential “pub buses” never get off the ground.