In October Transport Minister Norman Baker said the economy on Scilly was too strong at the moment to justify a transport subsidy, similar to the one provided to the Orkneys in Scotland.

BBC: Skybus

Thames Clippers gets a small subsidy from Transport for London (TfL), part of the Greater London Authority.

ECONOMIST: Thames river transport

It leaves some discretionary funding in place, such as free transport for pupils on free school meals, and a subsidy for other pupils who will be affected.

BBC: children on school bus

Bert Biscoe, the council's transport spokesman, said there had been a "very significant risk" that without an increase in the subsidy, the coach company would have had to reduce or stop its services.

BBC: Western Greyhound and Cornwall Council bus subsidy deal

The subsidy on petrol would be eliminated, its abolition to be accompanied by a new fund for public transport.

ECONOMIST: Mexico��s presidential election