Transport spending: Getting more from less Paul Godier Transport Planning Society 26 th January...
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Transcript of Transport spending: Getting more from less Paul Godier Transport Planning Society 26 th January...
The challenge
Cut of about 20% by 2013/14 (Labour PBR)
Local authority spend too
Total saving needed ≈ £3½ billion p.a.
Balance of tax & spend?
The key goals of the economy & climate change remain
Expenditure savings 1 - efficiency
Some already built in to existing projections
Many examples of further scope: Midlands Highways Alliance – joint procurement etc
£11m pa Shropshire CC – whole life road maintenance – save 24% Norfolk CC – Integrated Transport Unit – save £0.6m pa
Network Rail – ORR require 21% pa saving by 2014
We suggest a realistic aim of 7½% cumulative - saving £1.3 billion p.a. by 2013/14
Expenditure savings 2 – bus subsidy
Key opportunity – restructure concessionary fares for the elderly
Package together with: Faster smartcards & Incentive Per Passenger Pre-loaded value Multi-modal
Potential saving of £400m p.a.
Interim options – charge per card/flat fare
Expenditure savings 3 – and some high VFM addbacks
Road capacity investment to be reduced
Increased spend on high value areas: Road safety Smarter choices
Rail ‘grand projets’ – beware ‘crowding out’
Green taxes
Fuel duty +2p
Air passenger duty +25%
Simple lorry charging scheme
Could raise £1½ billion p.a.
We are not arguing for hypothecation, but…
Decarbonisation
Looming fiscal hole – falls in VED & fuel duty yields
Loss estimated at £4 billion by 2020 & rising
More congestion as motoring gets cheaper
Step forward…road user charging Also makes short term road spend unworthwhile Can be phased Once in, reduces case for public transport subsidy
Private sector
Community infrastructure levy
Business rate supplement
Workplace Parking Levy
Estimated £¼ billion p.a. from these sources
Opportunity for regulated utility model for national roads
Infrastructure Fund for pension investment may assist also
The scorecard
£bn p.a.
Efficiency 1.3
Expenditure cuts (net) 0.4
Taxes & charges 1.5
Private finance .25
Total 3.5
Approx. potential annual savings
In summary
It’s tough, but…
…there’s a menu of options that could: Make a big contribution to short term fiscal need Still deliver a great deal on the economy & climate change Tax ‘bads’ not ‘goods’ Elicit private sector help Fix the looming hole in fuel duty & VED
Full report at www.bit.ly/tsgmfl or Publications on CfIT site