The bus driver was forced to divert traffic around his vehicle until help arrived after the accident which happened next to the Blacksmith’s Arms at the junction of Church Lane and Main Street in Cayton.

The Daihatsu Sportrak 4X4 vehicle was left in the pub car park while the arrested man was questioned by officers at Scarborough Police Station.

Bob Rackley, the commercial manager of East Yorkshire Motor Services Ltd, said the bus was returning from Speeton – between Filey and Bridlington – and was heading towards the depot in Barry’s Lane, Scarborough.

He said: “We are still investigating what’s happened. We have yet to speak to the driver and find out what’s happened. Obviously we are pleased that he helped direct the traffic.”

A small crowd of onlookers gathered and one witness said: “It was right at the junction.

“The bus had stopped and I thought it was strange because there isn’t a bus stop there.”

The witness added the location of the accident could have led to further collisions because it was on the brow of a hill.