Several motoring reforms have been announced by the Chancellor of the Exchequer, George Osborne, in the 2015 Autumn Statement and Spending Review. Announcements include a ‘National Pothole Fund’ and a permanent solution to Operation Stack.
To tackle poor road surfaces found across Britain, the Chancellor confirmed that a permanent National Pothole Fund will be established. The Government will spend £250 million over the next five years on pothole repairs.
A further £250 million will also be spent by the Government on creating a new permanent lorry park to take pressure off the roads in the event of Operation Stack.
Operation Stack is used by police and the Port of Dover to park lorries on the M20 motorway in Kent when there are disruptions for those wanting to travel through the Channel Tunnel or from the Port of Dover. The new lorry park confirmed in the Autumn Statement is a response to the serious congestion which built up when Operation Stack was in place earlier this year following industrial action at the French port in Calais.
Also announced in today’s statement were reforms for claims on minor car accidents, designed to undermine the compensation culture. The reforms remove the right to general damages for minor soft tissue injuries and remove legal costs by transferring personal injury claims of up to £5,000 to the small claims court.
Chancellor Osborne says that the insurance industry could save up to £1 billion and these savings should be passed on to customers. That equates to an average reduction of £40 to £50 per person on annual insurance premiums.
The Chancellor also announced that the removal of the three per cent diesel supplement from company cars will be delayed until 2021. Ultra-low emission vehicles will continue to be supported, with £600 million being invested between 2015-16 and 2020-21 to aid their uptake and manufacturing.
The Department for Transport operational budget will also fall by 37 per cent. However, capital spending on transport will increase by 50 per cent to £61 billion, which Osborne commented is “the biggest increase for a generation”.
There was no update, however, on any potential changes for fuel duty or the £5,000 plug-in car grant, the latter of which is set to expire during 2016.
