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Motoring news

Transport group predicts 'gloves off' Budget

21/06/2010

The chancellor is likely to announce new transport taxes and charges in tomorrow's 'emergency' Budget, a leading transport charity predicts.

And the Campaign for Better Transport adds that, while George Osborne has pledged to focus his first Budget on spending cuts, the potential revenue from new taxes and charges will prove "irresistible".

The group's prediction comes in a pre-Budget briefing, in which it summarises changes that have already been announced by the coalition Government, and other policies it believes the chancellor might unveil tomorrow.

Better Transport explains that transport projects, together worth billions of pounds, are among a £34 billion spending review being undertaken by the Government. It highlights cuts of £309 million already made to local authority transport schemes and £100 million sliced from Network Rail's budget, but goes on to argue that some areas of transport spending - mostly public transport schemes - will be harder to cut than others.

Among the examples it names are rail spending, much of which is tied into franchise agreements with several years left to run, and funding of public transport in London - cuts to which could "hamper delivery" of the Olympics.

Suggesting that spending cuts are instead more likely to fall outside the capital, the group outlines possible areas where the chancellor might look to raise income. It believes it likely that Mr Osborne will go ahead with 1p-per-litre increases in fuel duty, planned by the previous government for October 2010 and January 2011, but that he is not likely to embark on part-privatisation of the roads - a policy mooted by groups including the RAC Foundation.

"We expect this Budget will be where the gloves come off," said Better Transport executive director Stephen Joseph.

Calling for spending cuts to be made "in ways that help revive the economy, increase social justice and reduce carbon emissions", he added: "Sensible, smart cuts like cancelling needless and expensive road schemes could help ensure proper funding of greener transport options like bus and train services, and ensure the roads we have are maintained properly."


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