Dozens of parents protested outside County Hall in Morpeth, over plans to charge over-16s for school transport in Northumberland.
From September, most students between 16 and 18 years old will be charged £600 to use school buses, and will fund their own public transport costs.
The demonstration took place before an extraordinary meeting of the council. It debated a motion put forward by the Conservative group leader, Cllr Peter Jackson.
It called for the change to be suspended and for more consultations with parents.
The motion was narrowly defeated by 34 votes to 30.
The Labour controlled authority says the council must reduce a £3.3m bill for post-16 transport.
Council leader, Cllr Grant Davey said:
"In difficult times, we need to be focusing our resources on those who are in greatest need.
We've listened carefully to what the public have had to say, not just today but throughout the consultation period, but the bottom line is we have to balance our budget."
The Labour group said the cost of arranging today's extraordinary meeting came to £80,000; a figure disputed by others.
The Conservative group leader, Cllr Peter Jackson said:
"I think people had to have their say. People have got a democratic right and right across Northumberland, families and young people are struggling with this new six hundred pound, effectively, tax to go to school.
They had to be heard and their concerns had to be heard and addressed and I think it was the right thing to do."
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