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Tories set to strip road budget from Treasury

15th February 1996
Page 12
Page 12, 15th February 1996 — Tories set to strip road budget from Treasury
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Which of the following most accurately describes the problem?

• Top Tories are considering increasing road spending by taking the responsibility for the budget away from the Treasury.

One scheme, which is said to be favoured by both the Department of Transport and Conservative Central Office, involves hiving off to a corporation responsible for transport schemes at least 8p/lit of fuel sold and the 1:400 million annually raised by vehicle excise duty.

The corporation would then administer the money free from sudden cuts because of Treasuryled squeezes in public spending.

Insiders say the idea is part of the DOT's response to the national transport debate and could be in the Tory party's general election manifesto.

The DOT says it is considering a range of ideas ready for the spring publication of its ideas on the way forward for transport, the environment and the economy.