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Lost tax curbing government from going green

Tube train in the London Underground
Transport News
Channels: Transport News Tags: public transport

The Green Alliance and the Campaign for Better Transport have examined the way that the government plans transport spending, and have found it fundamentally flawed and biased against green projects. Right now, the government is looking to overhaul the New Approach to Appraisal (NATA) guidelines it uses to allocated budget for transport plans.

But the research has found that the government's process favours projects that actually increase CO2 emissions and fuel use, and doesn't recognise walking and cycling as realistic alternatives to driving. What's more, the lower tax income generated from public transport is deterring the government from spending more on public transport projects, the research says.

"The government needs to invest in projects that give people real choices in how they travel while reducing CO2, protecting landscapes and strengthening communities -- but it is instead giving the green light to projects that do the exact opposite," says Stephen Joseph, the executive director of Campaign for Better Transport.

The research also claims that the government's process actually avoids plans that try to switch car drivers onto public transport, because of fears that tax revenue would decrease. Public transport uses less fuel and tickets aren't subject to VAT, so therefore less tax income is generated.

"A major rethink of UK transport policy is needed here and now to tackle rising emissions from the transport sector. Unlike her predecessors, Ruth Kelly does seem willing to make climate change a priority for the Department for Transport. But incredibly the department is still approving road schemes that increase emissions. That has to end now," says Stephen Hale, director of Green Alliance.

"We call on the government to move away from their obsession with cost benefit analysis, and establish carbon standards for new transport schemes. We need decisions today that create a low carbon infrastructure for the future."

The government's review of the NATA process is currently underway, and the public consultation closes on 31 March.

Posted: 18 February 2008, 10:29am by Matthew Sparkes
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