The transport sector has been tipped to be one of the biggest casualties in the next spending review.
According to a team of experts from the Institute for Fiscal Studies (IFS), spending on capital projects is set to be ‘disproportionately’ cut back, with forecasted net investment in the public sector halved in cash terms by 2013, from £44bn this year.
The team, led by IFS director, Carl Emerson, claimed that large cuts were likely for capital-intensive spending areas. ‘Transport and housing have seen large increases in their budgets since the turn of the century and, at least until recently, have been among the Government’s stated priority areas.
‘But together they account for around 40% of total capital spending and, therefore, both are likely to be high-profile casualties of the next spending review.’
Alison Quant, president of CSS (County Surveyors’ Society), told Surveyor it was understandable that any government would want to make substantial cuts to transport in the short term, because it was easier to halt such programmes.
But she warned that it was important decision-makers realised the majority of local transport investment went into maintaining the ‘deteriorating’ local road network. ‘Well-maintained roads are critical to our economy and social life, and if we let them deteriorate, it will cost more to recover than if maintained to a good standard.’ Ms Quant urged local authorities to ensure maintenance spending is given priority over other forms of transport spending during the cutbacks.
A spokesman for the Treasury said spending levels for the Department for Transport for the three years to 2010-11 were set out in the Budget.
‘Decisions on transport spending in the longer term will be a matter for the next spending review and will be set in line with the fiscal projections set out at the Budget.’ A Labour member of the transport committee, Graham Stringer MP, said last week that public transport faced cuts of at least 30% when the Government cut public spending (Surveyor, 25 September).
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