Criticism from KPMG for Chancellor’s summer budget

KPMG has criticised the UK Chancellor for lack of investment in regional transport infrastructure in his Summer Budget 2015. Chris Hearld, chairman for KPMG in the North, said: “Once again we have seen the Northern Powerhouse being a key plank to the Chancellor’s Budget announcement. We have always maintained that for the Northern Powerhouse to succeed, all parts of the region need to be brought on board, so it was encouraging to hear that following the lead set by Manchester, devolution deals are in the
July 9, 2015 Read time: 2 mins
1981 KPMG has criticised the UK Chancellor for lack of investment in regional transport infrastructure in his Summer Budget 2015.

Chris Hearld, chairman for KPMG in the North, said: “Once again we have seen the Northern Powerhouse being a key plank to the Chancellor’s Budget announcement. We have always maintained that for the Northern Powerhouse to succeed, all parts of the region need to be brought on board, so it was encouraging to hear that following the lead set by Manchester, devolution deals are in the pipeline for the likes of Leeds, Liverpool and Sheffield.”
 
However, he said it was disappointing that no further announcements were made regarding investments in regional transport infrastructure. While the introduction of an Oyster card system across the North is a nice gesture in principal, he believes it will do nothing to alleviate the lack of capacity and very little to improve the connectivity on the region’s ever-crumbling rail network.
 
James Stamp, head of transport at KPMG UK also commented on the Chancellor’s commitment to invest in UK roads. He noted that in his last budget, the Chancellor announced a major road investment program worth US$23 billion. The Summer Budget included a promise to ‘ring fence’ the vehicle excise duty, or road tax, providing some clarity about where funding for the ambitious road projects will be found.

However, Stamp said, “We note that while road tax raises around US$9 billion per year, this is dwarfed by income collected from fuel duty which is around US$41.5 billion. We believe that more of this income should be reinvested in roads and transport infrastructure in line with the Chancellor’s statement that money raised from drivers should be spent on the roads they drive on.”

Urban Traffic Control

For more information on companies in this article

Related Content

  • Road user charging comes a step closer in Oregon
    December 19, 2017
    Having been the first US state to introduce the gas tax a century ago, Oregon is now blazing the road user charging trail. Colin Sowman looks at progress to date. For more than a decade, authorities in Oregon have known of the impending decline in fuels tax income and while revenue increased by more than 5% in 2016, that growth will slow considerably this year and income is projected to start declining in 2020.
    Read More
  • Georgia Yexley: Here's how micromobility can deliver public good
    June 27, 2023
    Georgia Yexley, founder of Loud Mobility, looks at the lessons on diversity, equity and inclusion which can be learned from the US and wider – and explores why it is a vital component for industry growth in the UK
    Read More
  • Benefits of investment in ITS technologies
    October 19, 2012
    What price can be put on the value of a life? How much should be spent on preventing untimely deaths? Difficult questions such as these help to put the comparatively small costs of ITS systems into context. While monetary analysis may seem cold and inhumane in consideration of road casualties, death and costly clear-up are often the stark reality transportation authorities are dealing with. This issue of ITS International contains numerous examples of large benefits to be gained from relatively modest inves
    Read More
  • Financing the US road infrastructure – road user charging?
    February 2, 2012
    In the US, the National Transportation Infrastructure Financing Commission's report to Congress will state that a national, distance-based charging is the only long-term solution to the country's infrastructure financing problems. The Commission's Chair, Rob Atkinson, talks to ITS International
    Read More

Highlighted Content