Chancellor to announce multi-billion boost for roads and measures to tackle debt and payday lenders
|
1. Multi-billion boost for roads Chancellor to allocate
biggest-ever single cash investment for England’s largest roads All
‘road tax’ to fund roads Budget boost for local roads and bridges
damaged by extreme weather Motorists and businesses will benefit
from a £30 billion investment package to enhance the country’s
transport network, the Chancellor is expected to announce in
Monday’s Budget....Request free trial
1. Multi-billion boost for roads
Motorists and businesses will benefit from a £30 billion investment package to enhance the country’s transport network, the Chancellor is expected to announce in Monday’s Budget. In the biggest-ever cash injection for England’s largest roads, Philip Hammond is expected to reveal a new £28.8 billion fund for strategically important roads, such as Highways England motorways and major local routes. The funding could pay for motorway improvements, upgrading key routes in local areas with congestion problems or poor links, and major new roads. This funding boost for 2020-2025 far exceeds the substantial amount of investment (£17.6 billion) during the previous five-years, and will amount to a 40% increase to Highways England’s budget. Funded by revenue from Vehicle Excise Duty, this will be the first time ever that ‘road tax’ will only be spent on roads. Roads are a crucial part of the country’s transport infrastructure and it’s right that from 2020 motorists see their road tax directly paying for improvements to their roads. He will also set aside additional funding to fix potholes, repair damaged roads, and trial next-generation methods of transport, such as electric bikes. The funding will help make journeys quicker and easier for millions of commuters across the country, while boosting productivity and road safety. Congestion costs UK households over £30 billion every year and the equivalent of more than 100 million working days could be lost, between now and 2040, unless action is taken. Councils will also be allocated money to maintain and improve local roads after the recent scorching summer and harsh winter of 2017, which has taken its toll. Of this, £420 million will be provided for fixing potholes, repairing damaged roads and keeping bridges safe and open. A further £150 million will help improve local junctions, allowing better access to workplaces, high streets and other community facilities. This comes on top of the annual £1 billion highways maintenance budget and recent £300 million potholes fund. The Transforming Cities Fund will be extended by £680 million to support local transport priorities. This has already benefitted communities across the country through projects like the Greater Manchester cycling networks and the West Midlands’ metro extension at Brierley Hill. This new money will be able to pay for more public and sustainable transport projects including new buses, trams and cycling routes. The Chancellor is also expected to announce an additional £90 million to trial next-generation methods of transport. This will create new ‘future mobility zones’ in three city regions to revolutionise transport, potentially including self-driving shuttle services, extending cutting-edge digital payments to cover more methods of travel across more cities, and electric bikes. This will help the UK be a global leader in future transport solutions and once these technologies are successfully tested they could be rolled out further. The total funding includes:
2. Budget to tackle problem debt and payday lenders
People on low incomes struggling to repay their debts or access affordable credit will be offered a helping hand in next week's Budget. A study looking at a new No-interest Loan Scheme, the next steps for a ‘breathing space’ from problem debt, and a £2 million innovation fund to help affordable lenders compete with the payday loan providers, will help people take greater control of their finances. A No-interest Loans Scheme would see the Government explore ways to partner with debt charities and the banking industry to provide interest-free loans to those on low incomes, helping them pay for life’s unexpected costs. A similar scheme in Australia has had widespread success, helping four out of five of those who took a no-interest loan to stop using payday loans. A scheme like this could offer the UK’s three million high-cost credit users a more affordable alternative, and help prevent people from falling into problem debt, or in extreme cases, turning to loan sharks. A feasibility study will be undertaken in 2019 looking at how a pilot could work in the UK. It is also expected that the Chancellor will publish detailed proposals on a ‘breathing space’, which would give people in problem debt legal protections from creditor action. Having listened to charities, campaigners and the financial services industry during a call for evidence earlier this year, it’s expected that the proposed breathing space period will be increased from six weeks to 60 days, giving people in problem debt more time to get their finances back on track. Often high-cost credit can be quick and easy to access - despite not always being the best value deal - in some cases offering a loan in under 10 minutes. Because of this, social and community lenders, such as credit unions, struggle to compete. To help level the playing field, the Chancellor is also expected to announce a £2 million challenge fund for budding tech entrepreneurs to invent solutions to make it easier and more attractive for people to borrow from more affordable lenders. The challenge will open to pitches early in the new year. These actions are part of the Government’s long-term plan to tackle problem debt and ensure all families have access to the financial services they need. In September, the Government launched Help-to-Save, a unique savings account offering hardworking people a bonus of 50p for every £1 they save which can be spent on whatever they like. Also, the Government announced in August that a new independent body will be established to promote financial inclusion. |