This week’s virtually unparalleled series of cuts to the UK’s expenditure plans to 2015 have been an extraordinarily painful exercise in slicing the recessionary cake.
Many would argue there is simply no alternative in order to retain Britain’s coveted AAA credit rating, while others maintain the swingeing reductions in departmental budgets – often to be sorted out at local authority level – are too deep and too fast.
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But despite the headline nature of many of those cuts the UK transport sector appears to have emerged relatively unscathed – and low-carbon initiatives in particular have been given modest encouragement.
The UK’s Society of Motor Manufacturers and Traders (SMMT) has cautiously welcomed priority being given to the low-carbon sector, including commitment to a Green Investment Bank, Regional Growth Fund and support for jobs in the sector.
This from SMMT chief executive Paul Everitt: Across industry, businesses have had to take difficult decisions on how to make best use of limited resources and we welcome government taking a similar approach to ensuring long term stability for the economy.
“While some measures will require even tighter budgetary control, industry is supportive of decisions that promote our products and the UK as an attractive place to do business.”
There has been some element of pain nonetheless in UK Chancellor George Osborne’s budgetary announcement, such as the abolition of what the SMMT called the “successful” Train to Gain scheme. The national training programme was launched under the previous administration at a cost of GBP1bn but has fallen victim to Osborne’s axe.
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By GlobalDataBut the Exchequer has sweetened the blow by increasing the availability of adult apprenticeships by 50% – a move the SMMT noted was “a positive initiative.”
Since the new British coalition government came to power this May, the SMMT appears to have enjoyed cordial relations with the politicians, reserving praise for the Department for Business, Innovation and Skills, while pledging yesterday to work with them and the Department for Transport (DfT) as to exactly how their plans – under the new financial constraints – will apply to the motor industry.
And in a nod to the wider public it is mindful it has to avoid what some might view as peripheral spending, the DfT says no new funding for ‘Act on CO2’ campaigns will be made available.
The DfT will also “require efficiency savings from both the Energy Saving Trust and Low Carbon Vehicle Partnership,” and concedes these targets will be “challenging but sensible.”
Just what those numbers are is not yet clear, but in a sign the DfT is to assume greater responsibility in environmental affairs, the functions of the Renewable Fuels Agency are being transferred to it and although this should ensure “administrative savings,” it perhaps makes sense to bring the body under its umbrella.
Specifically, the DfT has committed to more than GBP400m to promote ultra-low carbon vehicle uptake, including supporting consumer incentives for electric cars for the duration of Parliament – to 2015.
The Plug In Car grant will be reviewed in 2012, but as the UK economy grinds slowly out of recession, just what are the government’s plans for the future of low-carbon vehicles and in particular financial incentives for them?
Tantalisingly, it notes it will “support the key elements” of carbon-saving transport programmes to be delivered by the Energy Saving Trust and Low Carbon Vehicle Partnership, but confines itself to noting : “Details will be confirmed shortly.”
Just how deep are the government’s low-carbon pockets? The imminent arrival of Nissan’s Leaf next year will focus minds on what is fast becoming a reality, but to what extent – and for how long – will the British government truly incentivise the sector?
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