Transport head on Gov. chopping block
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CHANCELLOR Denis Healey has wielded his spending axe— and brought it down hard on the necks of road and transport expenditure.
A huge cut-back of £963m will be made between April 1977 and 1979, and is the largest in any public sector except education.
Massive bus fare increases, reductions in services and traf fic congestion are all expected to result from the move.
The breakdown of the cuts runs like this — £133m in 1976/77, £324m in 1977/78 and E506m for 1978/79.
The main brunt will fall on the roads, where building is down by £200m or 24 per cent on last year's estimate for 1978/79 and maintenance down by E100m, or 19 per cent Between now and 1980 roa traffic is expected to increas by about 10 per cent whil expenditure on roads an local transport drops by 23 pa cent.
Rob Peter
Although the Chancellc calls for a drastic reduction the level of local authority bu subsidy it is by no means clea that this will in fact b achieved.
For the White Paper on put lic expenditure published las week says that the presen transport policy review, whic: is expected shortly, may mew "some revision of the priori ties" set out in Mr Healey' package.
So once the review is coin pleted the Government ma; decide to "rob Peter to pa: Paul" and by juggling th available money stop the bu cuts, This battle as to where thl money should go has not ye begun. But it can be expecte that strong pressure will b brought to get cash allocate for the railways to be switche to the buses.