Transwatch “Fact Sheet” No. 13 – Road taxes v rail subsidy

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The basis of this claim is to spread the taxes over the total length of all roads – including those ‘not-to-be-mentioned’ ghost roads, then adjusting it for estimated 37% of vehicle mileage on m-ways & trunk roads.

Ø       It proves that 63% is on ‘ghost roads’, which undermines comparisons he advances (see sheet 1). They are not merely ‘access roads’.

Ø       Clearly, a large volume of traffic travels solely on 200,000 miles of other roads which cannot be ignored. Having two Sheets (see Sheet 4) on the same subject does not enhance reliability.

He claims £6bn was spent on roads and £40bn collected in taxes, leaving £34bn in profit for the Exchequer.

Ø       This is from the kindergarten school of fiscal studies.

Ø       25% of taxes were VAT which is irrelevant, as VAT affects railway purchases.

Ø       He ignores the annual cost of road casualties, the value of time saved every year in perpetuity by road users, and claimed reductions in accidents used to justify past road improvements. These are precisely the same benefits that he claims as a return on the cost of converting railways.

Ø       £19m was claimed as a time benefit in the Study he praises.

Ø       He ignores the cost to the UK balance of payments deficit of costly oil imports.

Ø       He ignores that lorry & bus operators are subsidised by motorists & the increased cost of NHS and emergency services.

‘Fact Sheet 13’ is worthless.