DfT corrects Grayling on his conference speech

 

The Department for Transport (DfT) has corrected Chris Grayling on his own conference speech, after he mistakenly claimed that all money from 'car tax' goes back into improving roads.

In celebrating the undoubted increase in roads funding in recent years, the transport secretary went a step too far and said: 'We have launched the biggest roads upgrade programme for decades, investing every penny you pay in car tax back into improving the roads you drive on.'

”Local

Comparing all spending on roads with fuel duties and vehicle excise duties leaves the motorist around £25bn down.  

In fact, Vehicle Excise Duty (VED) - commonly called car or road tax - is not currently a hypothecated tax and raises billions more than is spent on roads by the DfT.

The department has committed £6bn to local roads from 2015/16 to 2020/21 and £15bn from 2015-2020 to Highways England, which manages the strategic road network. This makes a total of around £4.2bn a year.

In 2016-17 VED brought in around £5.8bn and the Office of Budget Responsibility expects VED to raise £6.2bn in 2018-19.

This leaves the motorist at least £1.6bn down per year.

Funding from the communities department also goes towards to the revenue side of local highways; however this cash has been subject to severe cuts over recent years and, as it is not ringfenced, councils often underspend.       

Latest government documents place total combined revenue highways and transport net expenditure at close to £3.994bn for 2017-18. However, according to official figures from June this year, local government was budgeted to spend £4.24bn over 2017-18 on these services.

Correspondingly, if one adds in fuel duties as a revenue car tax - these being a tax and necessary to running a car - 2016-17 figures released this May state that a further £27.9bn is brought into the Treasury.

This leaves the car driver at a minimum, excluding VAT and including local transport spend, down £25.5bn on money brought in versus money spent on roads.

A DfT spokesman told Transport Network that from 2020 all road tax - meaning VED - in England will go to the National Roads Fund, which will be spent on improving the strategic and major road networks.

Register now for full access


Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.

Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors. Use the link below to register your details for full, free access.

Already a registered? Login

 
comments powered by Disqus
 
 
highways jobs

Definitive Map Manager

Cambridgeshire County Council
£32,825 - £35,401
This role is based within the Highways Service at Cambridgeshire County Council and provides an unusual and... Cambridgeshire
Recuriter: Cambridgeshire County Council

Bridge Park Operations Manager

Brent Council
£38,799 - £41,706 p.a. inc.
This is an exciting opportunity to play a key role in managing the operations and contributing towards the... Brentford (City/Town), London (Greater)
Recuriter: Brent Council

Assistant Engineer

Cambridgeshire County Council
£21,074 - £30,756
A great opportunity for someone looking to start or develop a career in Highways Engineering including the... Cambridgeshire
Recuriter: Cambridgeshire County Council

Head of Strategic Transport

Cheshire East Council
£64,000 - £75,000 + benefits
We’re committed to “working for a brighter future together” – and we expect you to be too! Cheshire
Recuriter: Cheshire East Council

Regeneration Manager

Mole Valley District Council
£52,895 - £57,143 FTE
This is a great career opportunity to specialise in town centre regeneration and repositioning. Dorking, Surrey
Recuriter: Mole Valley District Council

Technical Services Officer (Mechanical)

Kirklees Metropolitan Council
£36,876 - £38,813
This is an exciting and challenging time for Kirklees and we want to expand our team to manage and deliver construction... Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Road and Footway Asset Engineer

Kent County Council
£28,925 per annum
An exciting opportunity has arisen to join the Road and Footway Asset Team as an Asset Engineer. Kent
Recuriter: Kent County Council

Head of Waste

Lincolnshire County Council
£65,651 - £70,725
As Head of Waste, you will be commercially focussed and forward-thinking. Lincolnshire
Recuriter: Lincolnshire County Council

Assistant Director

Reading Borough Council
Up to £92k
It’s the ideal time to take the lead on our modernisation agenda, and deliver growth in the trading of our front line services. Reading, Berkshire
Recuriter: Reading Borough Council

Assistant Director – Highways

Lincolnshire County Council
£82,264 - £107,878
Come and lead the future agenda for our highways services. Lincolnshire
Recuriter: Lincolnshire County Council

County Highways Manager

Lincolnshire County Council
£55,503 - £60,578
Seeking a highly motivated leader and an excellent communicator, who has a proven ability to build relationships and trust, leading by example. Lincolnshire
Recuriter: Lincolnshire County Council

Local Highways Manager (East) - Lincolnshire County Council

Lincolnshire County Council
G12 £43,662 - £50,430
Seeking someone who combines excellent technical knowledge with a dedication to the customer. Lincolnshire
Recuriter: Lincolnshire County Council