President Hugo Chávez’s “21st century socialism” reached the UK yesterday when Venezuela signed an agreement to subsidise the fuel bill for London’s buses by up to $32m (£16m) a year to fund cheap travel for the capital’s poor.

Ken Livingstone, the city’s mayor, said the 20 per cent discount would fund half-price rates on buses or trams for 250,000 Londoners who receive income support.