COUNCILS KEEPING THE TRANSPORT CASH?

RMT helpline 0800 376 3706 :: march 2013 :: RMTnews 14 The House of Commons Public Accounts Committee has raised concerns that local authorities facing significant Com Dem budget cuts are spending government money they get to invest in roads, light rail and buses on other projects. The committee found that the Department for Transport hands over £2.2 billion to fund local schemes but £1.2 billion of that is not ring-fenced and could be spent on any capital project. It has also recommended that restrictions should be put in place to make local authorities spend the cash they earn from car parking charges on transport schemes in the area. It raised fears that projects could be hit as the Tory-led government continues its "localism" drive to devolve more control over funding to local authorities. Committee chair Margaret Hodge said that the Department for Transport made a substantial contribution towards the funding of local transport services, but had no clear way of controlling how this money is used. "The department does not have the information to assess the impact on transport services, or to make comparisons between local areas to identify councils that are underperforming. "It is also unclear how the department would identify a failure or unacceptable deterioration in services, or when and how it would intervene," she said. RMT general secretary Bob Crow warned that it was no wonder bus routes in many areas of the country were teetering on the brink of financial collapse. “It appears resources that should be invested in these lifeline services are being diverted to prop up gaps elsewhere in council budgets. "RMT will continue to work with local communities to fight to protect bus services from extinction as the government cuts bandwagon threatens to wipe out routes which for many remain a vital public service,” he said. MPs warned that it could also stymie any projects that require co-operation across local boundaries, putting national and regional plans at risk. "Councils also raise funds from local people through parking charges and the department should ensure that this money is actually used for local transport, and put in place transparent mechanisms for doing so. "We are not convinced that government has thought through the risks of devolving more control over the funding of major transport projects to a local level. “For example, the department is confident that local bodies will naturally co-operate to fund and implement projects. We believe this confidence may well be misplaced. "The risk is that local transport bodies, under severe financial pressure, will not take sufficiently strategic and joined- up decisions, threatening national or regional transport funding objectives,” said Mrs Hodge. COUNCILS KEEPING THE TRANSPORT CASH? MPs committee warns cash-strapped local authorities are diverting money for roads and buses to other projects