TSG will be cut next year
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TRANSPORT Supplementary Grant is to be cut from next April to concentrate purely on capital schemes.
The change was announced by Transport Secretary, Nicholas Ridley, who said that in recent years some councils have been spending too much on public transport subsidies while Government's plans for local road building had not been realised.
"We want to concentrate the extra Government support provided through TSG on roads which are used by a high proportion of through traffic. These roads form part of a national network and it is fitting that there should be a national contribution to their construction and improvement."
Mr Ridley said that there was also no justification for tax payer support for capital expenditure on projects of only local importance such as car parks.
But Mr Ridley said that councils would be no worse off as their road support grant block payment would increase.