Budget 2011: Spending targets transpennine rail
A £200m boost to the UK’s rail network was pledged by the Chancellor today as the Government sought to implement its policy of supporting private sector growth ambitions.
In his Budget speech to the Commons, Mr Osborne said savings in the Transport Department had freed up the millions necessary for the investment in regional railways.
He also pledged the Government would go ahead with the £85m Ordsall Chord scheme, linking Manchester’s Victoria and Piccadilly stations. The link will significantly reduce journey times between Liverpool and Leeds.
It is also committing to the Swindon to Kemble redoubling scheme, complementing electrification of the Great Western Main Line to Wales.
In a move to improve the national road network, Mr Osborne said he was also freeing up £100m to help councils repair the multiple potholes caused by the winter’s extreme weather.
The big rabbit out of the hat which will benefit the transport industry as a whole was a 1p cut in the fuel levy, effective from 6pm, and the introduction of a fair fuel stabiliser funded by a levy on oil companies.
From tomorrow the supplementary charge levied on oil and gas production will increase from 20% to 32%.
Even after this, profits on a barrel of oil are forecast to be higher in the next five years than in the last five years. The move will raise an additional £2bn in revenue.
The inflation rise in duty planned for next week is delayed until next year – and the planned rise in April 2012 is also postponed until the following summer.
The fuel duty escalator that adds an extra penny on top of inflation every year has also been cancelled – not just for this year but for the rest of this Parliament.
