Labour’s £1.3bn war on drivers

Corbyn would increase taxes to reverse cuts to 3,000 bus routes

JEREMY Corbyn will outline plans today for a £1.3billion-a-year tax raid on motorists to reverse cuts to 3,000 local bus routes.

The Labour leader will say bus services have been ‘devastated by nine years of austerity’, and he plans to use revenue from car tax earmarked for investment in improving Britain’s road network on buses instead.

But Transport Secretary Chris Grayling branded the policy a ‘never-ending war’ and claimed it would lead to the cancellation of two thirds of major road improvements. The Tories also warned that Labour would have to ‘clobber motorists with tax hikes and slash funding for road repairs’ to pay for their plans.

Last night, a Labour spokesman insisted it had no plans to increase vehicle excise duty (VED), which is forecast to raise £7.1billion for the Treasury in 2021/22.

Analysis by the Campaign for Better Transport shows that more than 3,000 bus routes have been cut back or withdrawn since 2010 amid a 45 per cent reduction in local authority bus budgets.

Nearly half of all bus routes in England receive partial or complete subsidies from councils. The Local Government Association has warned that they are at risk as local authorities will struggle to maintain levels of support unless they are given more funding.

Mr Corbyn will say in a speech in Nottingham: ‘ Local services are a lifeline for many, particularly the elderly and those in rural areas. Cuts have had disastrous consequences for our towns and city centres and for air pollution and the environment.

‘Bus networks are essential for towns and cities and for tackling rural poverty and isolation, which is why Labour is committed to creating thriving bus networks under public ownership.’

Mr Grayling poured scorn on the plans. He said: ‘This is the umpteenth time Labour have re- spent VED in their neverending war on Britain’s motorists. It’s clear the Labour Party don’t give a hoot about financial rigour, long-term investment or car and van drivers.

‘Britain’s motorists can’t trust Labour as they plan to slash our

‘Labour don’t give a hoot’

road investment programme and hike our taxes.’

Mr Grayling made similar accusations against Labour’s transport spokesman Andy McDonald last month when he hinted at plans to raise fuel duty, ending the nine- year freeze imposed by the Tories. Mr McDonald indicated taxes on both fuel and flights could be increased under a Labour government as part of wider efforts to tackle pollution.

He claimed freezing duty on those types of transport while increasing bus and rail fares was ‘not a sensible approach’ amid efforts to get more people to switch to public transport.

Labour insisted it had not proposed to increase fuel duty.

But the interventions by the Labour leader and his transport spokesman have raised concerns that hard- pressed motorists will come in for a rougher ride under a Labour government.

A Conservative Party spokesman claimed last night that tax rises for motorists would be inevitable. He said: ‘Labour have already spent the pot of money they claim would fund this proposal, meaning they would have to clobber motorists with tax hikes and slash funding for road repairs to pay for it.

‘Along with their plans to put politicians in Westminster in charge of running local bus services, their pledge to slash funding for roads and their calls to increase fuel duty, this just proves they are not on the side of hard-working families who rely on their vehicles.

‘We already spend a billion pounds every year to provide free bus travel to those who need it most.’