Government cuts could shelve transport projects worth billions

Councils could be forced to shelve transport projects worth a combined £2 billion if funding for such schemes is cut by ten per cent in the upcoming Budget, it has been claimed.

The Campaign for Better Transport (CBT) said such a reduction in spending would leave many regions with the choice of carrying out "a handful" of larger schemes - which would risk some areas being neglected for years - or trying to spread their resources across lower-cost alternatives.

Last month, the Department for Transport wrote to local authorities announcing that every transport scheme that has not yet secured full planning permission and funding approval is subject to review. The total value of these projects is £5.2 billion.

CBT roads and climate campaigner Richard George said the outcome of the Budget could mean that £100 million council schemes "just aren't viable anymore".Instead, they should start looking to more affordable ways to solve their transport problems while working towards UK climate change targets," he added.

The government has already ordered the Department for Transport to find £683 million in savings during 2010-11.

Carl Atkinson, expert in Transport at PA Consulting Group comments: “The new coalition government is looking at infrastructure projects in the transport sector as an area for making contributions to the reduction of the UK's highest ever levels of debt.  Given the fiscal situation this is both inevitable and necessary.  

The continuing improvements being made in rail service performance over the past three years reminds us of the complex interplay of factors that will need to be considered.  The cancellation, delay or redesign of a relatively small number of large transport infrastructure projects could make a significant contribution to reducing debt.  But, the costs of doing this will mean; lower levels of performance and more congestion on public transport services and networks; a slower path to achieving the critical environmental commitments that have been made and a reduction in activity in key economic, manufacturing and engineering sectors. 

The challenge will be in finding the portfolio of projects that could be scaled back or cancelled that minimise the impact of these other key objectives of our transport system while making an appropriate contribution to reducing the public debt. The continuation of which will continue to limit our ability to provide funding for transport services unless it is reduced."

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