News Archive
Road Cost Cuts Will Cost Taxpayers More
March 20, 2012
Politicians have warned car insurance policy holders that they are likely to see an increase in taxes following news that local councils are being forced to cut £223 million from their annual road maintenance budget.
The Department for Transport (DFT) is hoping to make savings by slashing the frequency of road repairs, while performing more intensive maintenance. In spite of this many politicians believe this to be a short-sighted solution as it's likely to lead to problems for both roads and motorists.
Following this decision by the DFT the Public Accounts Committee raised concerns in a report on the DFT's spending.
The report states that the overall costs will not reduce long-term as the deterioration of the road network will probably result in higher cost repairs in the future. Consequently car insurance holders are likely to see an increase in taxes.
Commenting on this report, Committee Chairman Margaret Hodge stated that the DFT clearly does not understand the impacts its cuts to road maintenance will have on the state of UK roads.
Hodge added:
"My committee is concerned that short-term budget cutting could prove counterproductive, costing more in the long term as a result of increased vehicle damage and the higher cost of repairing the more severe road damage."
Source: http://www.telegraph.co.uk/motoring/news/9138507/Cutting-roads-repair-budget-will-cost-taxpayer-more-MPs-warn.html