Any of the following councils, namely the council or any county,. . . F1 or F2district in England or Wales, any county, town or district council in Scotland, and the Council of the Isles of Scilly, or any two or more of those councils acting jointly, may, on such conditions, if any, as they think fit, afford assistance to any other person, by way of grant, loan or both, for the purpose of securing the provision, improvement or continuance of any. . . F3 ferry service if in the opinion of the council or councils in question that service is or will be for the benefit of persons residing in rural areas.

The Council of the Isles of Scilly may, on such conditions, if any, as they think fit, afford assistance to any other person, by way of grant, loan or both, for the purpose of securing the provision, improvement or continuance of any bus service if in the opinion of that Council that service is or will be for the benefit of persons residing in rural areas.

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A regional, islands or district council or any two or more of those councils acting jointly, may, on such conditions, if any, as they think fit, afford assistance to any other person, by way of grant, loan or both, for the purpose of securing the provision, improvement or continuance of any bus service if in the opinion of the council or councils in question that service is or will be for the benefit of persons residing in rural areas.

A F7council or two or more councils acting jointly, may, on such conditions, if any, as they think fit, afford assistance to any other person, by way of grant, loan or both, for the purpose of securing the provision, improvement or continuance of any ferry service if in the opinion of the council or councils in question that service is or will be for the benefit of persons residing in rural areas.

The Secretary of State may, with the approval of the Treasury, make grants in such cases and subject to such conditions as he thinks fit to F8a council in respect of expenditure incurred by that council in making grants under subsection (1) or (2) above, and any grant under this subsection in respect of expenditure in connection with a bus service shall be of an amount equal to half the expenditure in respect of which the grant is made.

The Secretary of State may, with the approval of the Treasury make grants in such cases and subject to such conditions as he thinks fit to F9a council in respect of expenditure incurred by F9that council in providing a ferry service which in the opinion of the council is or will be for the benefit of persons residing in rural areas.

In this section “council” means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994.