A rural bus service set up under the wing of Bentham Development Trust, has been axed in the wake of a probe into irregularities in its accounts.

The Little Red Bus went into administration on March 30, following an investigation launched earlier this year.

At the time it was reported that the irregularities in the accounts went back four years and amounted to about £28,000.

In Bentham News, which is distributed to residents in the village, trust chairman David Alder said details relating to the insolvency could not be revealed for legal reasons.

He said: “This has been a difficult time for all involved with the trust and our aim has been to seek to protect, as far as possible, the valued community services we have been providing and we will be unable to provide in the future.”

He said the trust had been talking to community transport providers to ensure the continuance of the taxibus, the volunteer car scheme and the school contracts.

A North Yorkshire County Council spokesman said it was aware of the situation.