Sunak misses opportunity to encourage rail growth

Chancellor Rishi Sunak, much lauded for his generosity during the pandemic, is showing his true colours as a born-again Thatcherite - insisting on austerity measures despite the obvious need for Keynesian-type policies to lead us out of the recession.

Moreover, by giving in to the roads lobby and agreeing a 5p cut in fuel duty, that will cost the Exchequer a stunning £5 billion. Yet, given the volatility of the market, few motorists will notice the reduction. And, in any case, there are doubts whether it will be passed down to the price on the pump.

On the other hand, not only has the capital programme for £27bn of spending on roads been maintained, but the rail fares rise went ahead as planned, despite similar (but far less effective) protests.

With the Ukraine war leading to calls for increased defence spending, and the rising demands on the health service, this lack of coherence in transport policy means that a once-in-a-generation opportunity of using the economic situation to encourage rail use while discouraging car use has been lost.