Oral Answers to Questions

Kerry McCarthy Excerpts

Thursday 28th October 2010 Commons Chamber

[Mr Hammond]

It is not a stealth tax because companies are only allowed to increase regulated fares by a weighted average of 1% above RPI in the coming year across all the regulated fare pool.

[Kerry McCarthy (Bristol East) (Lab)]

3. What assessment he has made of the likely effects on local transport schemes of the implementation of the proposed reduction in funding for local government resource grants.

[The Parliamentary Under-Secretary of State for Transport (Norman Baker)]

The majority of transport resource funding will now be paid through formula grant. It is for local authorities to decide how that funding is spent according to their priorities. As the Secretary of State mentioned a few moments ago, I am also establishing a local sustainable transport fund to help local authorities support economic growth and reduce carbon emissions.

[Kerry McCarthy]

I thank the Minister for that answer. The Government’s growth strategy is based on wildly over-optimistic predictions for private sector job creation. How does the Minister think a 28% cut in local government transport funding, the end to ring-fencing across local government funding in general and putting on ice the bus rapid transit scheme will help a city like Bristol, which is plagued by congestion and a lack of transport infrastructure?

[Norman Baker]

I hardly know where to start with that question. The fact is that 300,000 jobs have been created in the private sector in the last three months. It does not help the economy if Members talk it down as the hon. Lady does. It is also not true that the bus rapid transit system in Bristol has been put on ice. The section from Ashton Vale to Temple Meads in Bristol city centre is in the development pool and the south Bristol link phases 1 and 2 are in the pre-qualification pool. I hope very much that Bristol city council will work on those schemes in conjunction with my Department.