Transport chiefs losing their way over budget cuts warn MPs

TRANSPORT officials have little understanding of the impact swingeing budget cuts are having upon Britain’s overpriced rail fares and potholed roads, a powerful group of MPs warn today as commuters continue to suffer on Britain’s creaking transport networks.

A new report by Parliament’s Public Accounts Committee has highlighted confusion at the heart of the Department for Transport (DfT) over key road and rail issues as civil servants battle to implement the cuts imposed by the coalition.

The crossbench group of MPs has concluded that cutting road maintenance budgets could ultimately prove counter-productive for the Government’s deficit reduction plan, with repair bills and compensation claims potentially soaring in the future.

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The committee also said the DfT has failed to gain a proper understanding of why rail fares in the UK continue to rise, despite being among the highest in Europe.

Their wide-ranging report went on to criticise the DfT’s relationship with Network Rail, describing the company’s lack of public accountability as “unacceptable” and attacking the Government for “maintaining the fiction” that it remains a private firm when it receives more than £3bn a year in public subsidies.

Pot-holed roads and sky-high rail fares have long been complaints of commuters across Yorkshire and the UK, but in the current economic climate the Government has been able to offer little in the way of respite.

But Margaret Hodge, chairwoman of the Public Accounts Committee, said it was unclear whether cutting road maintenance budgets would even reduce public spending in the long run.

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“The DfT doesn’t fully understand what impact its cuts to road maintenance will have on the state of the UK’s roads,” she said.

“My committee is concerned that short-term budget cutting could prove counter-productive, costing more in the long term as a result of increased vehicle damage and the higher cost of repairing the more severe road damage.”

Last month a Yorkshire Post investigation found the cost of bringing Yorkshire’s roads up to what councils deem an “acceptable” level has risen beyond £700m.

But almost every council in the region has been forced to cut spending on pot-holes this year after having their budgets slashed by the Government.

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AA president Edmund King said it was important to remember that cyclists are also badly affected by potholed roads, and warned the Government not to fall into a “vicious circle” of spending cuts and higher compensation claims.

“Potholes can blight roads and are particularly treacherous for those on two wheels,” he said.

“The AA has seen an increase in the number of call-outs due to tyres, suspension and steering problems which could all be linked to potholes. As drivers are paying billions of pounds in various motoring taxes, they expect to be able to drive on main roads bereft of potholes.

“The last thing we want is a vicious circle where the declining state of roads leads to more claims for compensation due to damage and injury, which in turn means less spending on roads.”

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The Government insists it is trying to address the problem, highlighting one-off payments it gave councils to help deal with the impact upon the roads of last winter’s freezing temperatures, and claiming spending is actually increasing in cash terms.

Transport Minister Norman Baker said: “I recognise there is an ongoing need for highways maintenance that can’t be fixed overnight.

“However, we are providing £3bn to councils for road maintenance between 2011 and 2015, which is more in cash terms than the previous four years – as well as investing £6m for longer-term strategies.

“We also gave them generous windfall handouts last year following the severe winter which caused major problems.”

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The coalition also faces charges it has failed to get a proper grip on soaring rail fares.

Mrs Hodge said: “Rail budgets aren’t being reduced as much as other areas, yet passengers still face high fares. The department needs to understand why the cost of rail travel is so high, and understand better what scope there is for further efficiencies.”

Last week plans for further fare hikes were announced, but Mr Baker insisted rises would at least be limited in the future.

“Last week, the Government unveiled its plans to cut inefficiencies in the railways and to ease the financial burden on passengers by limiting future fare rises,” he said.

“At the same time Network Rail unveiled a package of reforms... making its decisions more accountable.”