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Press Release

Pre-Budget Report 2005: Transport and climate change

30 November 2005

1. The Pre-Budget Report (PBR) on 5 December provides an important opportunity for the Chancellor of the Exchequer to demonstrate his commitment to the environment. Key to this will be what the PBR says on transport infrastructure and climate change emissions, as well as on housing development. See also our separate: news briefing on housing and planning gain.

Transport's impact on the countryside

2. Last year the Government published its Transport White Paper. The Chancellor's Spending Review that year also brought the Department for Transport (DfT) under the Public Service Agreement to reduce carbon dioxide emissions that are contributing towards damaging climate change. The Chancellor also announced that Rod Eddington (former Chief Executive of British Airways) would be charged with examining the link between transport and productivity. It is expected that the Eddington Study will report in mid-2006. Environmentalists fear this could lead to pressure for lots more road building and relaxing planning controls.

3. UK emissions of carbon dioxide are rising, the UK Presidency of the EU has not yet secured agreement for aviation to be brought under the EU Emissions Trading Scheme, and the Chancellor has called for increased production and refining of oil in the wake of Hurricane Katrina to respond to spiralling demand. These all point to a weakening Treasury commitment to the environment.

4. CPRE will asses how green the PBR is by examining whether it:

  • begins to reverse the trend of declining costs of motoring and increased costs of using public transport. Between 1997-2004 motoring costs fell by 7%, bus fares rose by 11%, and rail by 4%
  • deals with unfair tax exemptions that are fuelling the growth in aviation and seeks to ensure aviation pays for the environmental damage it causes
  • raises the spectre of lots more road building in advance of the conclusions from the Eddington Study
  • proposes measures to 'streamline' the approval processes for major infrastructure projects (like major roads, or nuclear power stations) undermining public involvement and an effective planning process


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