Transport problems prompt budget increases

The government has unveiled extra funding for Britain's transport infrastructure as it seeks to address the problems of overcrowded roads and railways.

Gordon Brown used his spending review announcement on Monday to announce cash on top of that promised in Labour's 10-year transport plan.

The chancellor promised average annual budget increases for the Department for Transport of 4.5 per cent per year between 2004/05 and 2007/08.

Funding will rise from £10.4 billion this year to £12.8 billion by the end of the spending review period, with Brown declaring this to be a 60 per cent increase on 1997.

Transport secretary Alistair Darling will outline how the money will be spent later this month but moved immediately to welcome the news.

"Transport is a high priority for the government and my department is determined to deliver the outcomes that the travelling public and taxpayer desire," he said.

"This settlement will allow us to continue the progress we have made in delivering the government's 10 year plan for transport.

"We will be shortly publishing our long term strategy for transport, which will update the 10 year plan and roll forward the funding plans to 2014/15."

However not all of the money is new, with Darling having to find £785 million from efficiency savings.

Shadow transport secretary Tim Yeo said the Tories would be able to put in more investment through increased use of the private sector.

"All Gordon Brown has done is reset the government’s targets for transport, which, until now they have consistently failed to hit," he said.

"Nothing Gordon Brown has said in his spending review suggests that the government has an effective plan to make our railways more reliable or our roads less congested.

"There is no doubt that we need improvements to our transport network, but there is a huge opportunity to fund this investment programme through attracting private sector finance.

"Conservatives are looking at ways of attracting more private investment into the transport sector as a whole.

"This will be in addition to the public spending plans we have, and will mean that our investment programme will be at least as much as Labour’s and, more importantly, spent far more effectively."