Industry has expressed fears over the news that the Department for Transport (DfT) has reached a provisional agreement with George Osborne to reduce its resource spending by 30% over the next four years.

The Department is one of four to have agreed to the cuts so far ahead of the Chancellor’s Spending Review/Autumn Statement announcement on 25 November.

“Reports of heavy cuts, particularly to transport resource expenditure, are of great concern and we hope the Government does not do a U-turn on its commitment to improve the condition of our roads,” said Asphalt Industry Alliance chairman Alan Mackenzie.

He added: “The link between roads investment and economic growth is well established and cuts to the long term maintenance funding that the sector has fought so hard to achieve would be a significant backward step.”

Mr Osborne has said the savings will be achieved by a combination of further efficiencies in departments, closing low value programmes and “focusing on our priorities as a country”. He emphasised that the provisional settlements relate to ‘day to day’ resource spending of the departments and that capital budgets are to be unaffected.

“We fear that this huge cut in spending will hit everyday transport, the transport networks people use on a daily basis, while big road and rail schemes will remain untouched,” said Campaign for Better Transport chief executive Stephen Joseph.

“We await details, but we fear this will mean more potholes in local roads, more cuts in local bus services, and less funding for safe cycling and walking routes.”

In addition to the DfT cuts, resource savings of 30% have also been agreed by the Department for Environment, Food & Rural Affairs, Department for Communities & Local Government and HM Treasury.

Photo courtesy of the Asphalt Industry Alliance