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Spending cuts threaten bus projects

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Ahead of a detailed announcement on public spending cuts, transport secretary Philip Hammond has warned that the government will not be in a position to support all of the major transport schemes which were given indicative approval by the last government.

Shortly before losing power the Labour government announced various projects which had been awarded conditional approval or programme entry. Hammond warns that the new government “can give no assurances on funding support for any of these schemes”.

Bus Rapid Transit looks likely to suffer a setback with plans for Bristol, East Lancashire, South Yorkshire and South Essex under threat. Also facing the axe is the Leeds New Generation Transport trolleybus scheme.

Against the background of budget cuts and a commitment to review how transport spending is prioritised, Hammond explains: “Given the uncertainties which both of these factors create, and in view of the likely budgetary constraints, and the consequent likelihood that not all schemes will be able to proceed on their planned timetable, it would be inappropriate for the department to continue to invest time and resources on development of schemes at the same rate as before. 

“Local authorities will also wish to consider carefully whether investing further time and resources in developing such schemes ahead of the spending review is justified.  They should not assume that schemes prioritised under the previous government’s regional funding allocations process will be funded to the previous published levels.”

Ryk Downes, chairman of Metro, the West Yorkshire PTE, says: “Metro fully understands the government’s need to review the NGT trolleybus network and other transport projects as it re-explores measures to tackle the current economic situation. However the potential delay is frustrating when, as the Department for Transport has accepted, NGT alone will help to create 4,000 new jobs locally and generate a £160million per annum boost for the city region’s economy.

“The review process needs to be finessed so that those projects where public and private sector funding has already been committed or, like NGT, their economic benefits have been acknowledged by the DfT, can still be progressed."

www.dft.gov.uk

Photo: Leeds NGT trolleybus scheme under threat.


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