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Motorists could fund cuts in tax
Sep 20 2007 by Adrian Pearson, The Journal -Newcastle
MOTORISTS could be forced to pay to use the road, subsidising cheaper council tax bills every time they drive.
Gateshead Council has suggested using road pricing to pay for council services after the Government asked local authorities what they thought of the draft Local Transport Bill.
The council agreed to request a “flexible approach” to any money raised from road pricing – with some money diverted to allow lower council tax.
While many North-East councils want money raised from any future road pricing scheme to be used for local transport improvements, Gateshead councillors have written to the Government asking for the opportunity to use the funds for other purposes.
The council’s cabinet decided there “remains a need to consider alternative uses of revenue raised, e.g. through reductions to council tax bills”.
Business leaders have refused to support any road pricing that does not reinvest into schemes such as improving the Western Bypass.
Ross Smith, of the North-East Chamber of Commerce, said: “Taking money from motorists to keep council tax bills down in Gateshead would certainly not be acceptable to businesses.
“Any revenue raised must be used to ensure the region remains competitive. The most obvious way to do that would be to reinvest in the transport infrastructure.
“But if the council was to be given flexibility on business rates, it could be something we would be prepared to consider.”
The council has also met with opposition from Tyne Bridge MP David Clelland, who said: “I agree that generally local authorities should have the maximum flexibility with their funds but here I think the money really should be ring-fenced.
“If we were to have road pricing, most motorists would prefer it if the money ended up benefiting them, used on transport and road schemes.
“Any money raised should be used to directly benefit other motorists and not be used as a way of introducing cheaper council tax.”
Newcastle City Council are currently researching schemes which could include road pricing or congestion charging.
Richard Hibbert, the official leading the council’s congestion study, said that in theory councils had to be free to use the funds for other projects, but only once they had tackled transport problems.
He said: “We do not have a firm plan for road pricing and we do not have any firm plans for where the money raised would go.
“We would expect some local authorities will ask for this flexibility to allow room to consider all options.
“Now, most people would agree that in the first instance the money raised should be used for road improvements and to fund alternative modes of transport. But there is no sense in limiting that use forever.”
Gateshead Council cabinet member David Bollands said the authority would be unlikely to introduce any measures by themselves.
He said: “Basically we reserved our position, saying if the Government does introduce these measures, we would like to at least consider other uses for the money.
“But we recognise that transport is the biggest priority for this region, there is a major problem with the infrastructure in the North-East and we want to solve that first.”
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