Chancellor announces 37% Department for Transport budget cut in autumn statement

Friday, October 14th, 2016 - autos, cars, motoring, news

Source : Chancellor announces 37% Department for Transport budget cut in autumn statement

Chancellor George Osborne unveils 37% budget cut for Department for Transport, although capital spending will rise to £61 billion

Advertisement

Chancellor George Osborne has announced a 37% cut to the day-to-day budget of the Department for Transport during his autumn statement today, starting by next year. 

Although the operational budget will be cut, the capital spending of the department will be increased by 50% to £61 billion. Of This specific, £5bn will be earmarked for road maintenance, including a ‘national pothole fund’ of £250 million over the next a few years. 

In addition to the DfT cut, support for low-emissions vehicles such as hybrids in addition to electrically powered vehicles continues. The Volkswagen emissions scandal also had a knock-on effect on the motoring-related budget alterations, with Osborne saying: “from the light of the slower-than-expected introduction of a more rigorous EU emissions testing, we will delay the removal of the diesel supplement by company cars until 2021.”

Drivers are also set to save £40-£50 per year, as the government implements its reforms surrounding compensation after motoring-accident-related injuries such as whiplash. The saving will come by the reduced cost to insurers of the claims, with Osborne saying the saving should be passed on to motorists, rather than absorbed by insurers. 

Osborne made clear reference to the UK’s growing exports compared to imports, to which automotive manufacturing will be a strong contributor. Osborne also highlighted the importance of the Midlands to the UK economy, saying the area “creates jobs three times faster than London in addition to the South-East”. He said an example was Jaguar Land Rover’s recent decision to double the size of its Wolverhampton-based engine building facility, as part of its continuing investment in UK manufacturing plants. 

 

by via Autocar RSS Feed



Source: Chancellor announces 37% Department for Transport budget cut in autumn statement

Related Post :

    Pictures gallery of Chancellor announces 37% Department for Transport budget cut in autumn statement

    Advertisement
    Chancellor announces 37% Department for Transport budget cut in autumn statement | admin | 4.5