logo
Spending review frustrates South West transport campaigners

Spending review frustrates South West transport campaigners

BBC Newsa day ago

Some politicians, railway campaigners and residents in the South West have expressed disappointment following the Government's spending review on Wednesday.Chancellor Rachel Reeves announced £15bn of new investment in transport projects last week, and none of the money has so far been earmarked for named projects in Devon or Cornwall.Reeves pledged funding for affordable homes, health, defence and schools but any areas in the South West set to benefit have not been spelt out at this stage.Some campaigners and local residents had hoped her speech would have included additional investment for the region - such as funding to bring back Cullompton's railway station.
Mid-Devon district councillor Steve Keable said the "political reality" was that Reeves was "playing into her Labour heartland" by prioritising other parts of the country.Keable, who represents Taw Vale for the Liberal Democrats, said he hoped to find out "over the next few days" what would happen to "the capital funding that Cullompton and Mid Devon are so looking forward to".He added that the Cullompton Station project, as well as a separate project to build an additional junction on the M5 south of the town, could not "progress before we get the go ahead".
'Days out for children'
Some local residents remain supportive of the railway station project."I think it would boost the economy of the town," one said, adding: "I think it needs some money to push local businesses forward."Another local resident said the station was "always used before" and felt "the trains would be used more" if the station was rebuilt.One mother said it would be "fantastic" if the station came back, adding: "My children would have access to days out - it would be really wonderful for everyone."
Hoping for funds
Cornwall Council was awarded £184m in January by the UK's Shared Prosperity Fund (SPF) to help boost the local economy.However, the government announced this week it would be replacing the fund, which itself was originally established to replace EU funding by the last Conservative government.Cornwall previously received about £400m of Objective One funding from the EU as it contained some of the poorest areas in England and Wales.The government said it planned to establish a "new local growth fund" aimed at "mayoral city regions in the North and Midlands", as well as investing in up to "350 deprived communities across the UK".Jayne Kirkham, Labour MP for Truro and Falmouth, said she had been told the money from the fund would be distributed by the Ministry of Housing, Communities and Local Government (MHCLG), adding: "So that will come a bit later.""We are hoping that is coming soon and what the SPF might be morphing into," she said.Andrew George, Liberal Democrats MP for St Ives, said money for Cornwall should be ring-fenced if "there [was] ring-fencing for other nations".George said Cornwall had "rightly" received the investment over the last 25 years. "Now what we want to happen is to make sure Cornwall is treated as it has been over that period," he said.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Households face council tax hikes and £10billion stealth levies as Reeves gets boxed into corner by shrinking economy
Households face council tax hikes and £10billion stealth levies as Reeves gets boxed into corner by shrinking economy

Scottish Sun

timean hour ago

  • Scottish Sun

Households face council tax hikes and £10billion stealth levies as Reeves gets boxed into corner by shrinking economy

Economists warned the circumstances meant tax hikes are almost certain this autumn GOGGLE-BOXED IN Households face council tax hikes and £10billion stealth levies as Reeves gets boxed into corner by shrinking economy HOUSEHOLDS face council tax hikes and £10billion in stealth levies as Rachel Reeves gets boxed into a corner by the shrinking economy, experts warn. The Chancellor, who wore protective goggles during a visit to the University of Derby yesterday, learned growth fell 0.3 per cent in April — less than 24 hours after her £113billion spending review splurge. Advertisement 2 Rachel Reeves wears protective goggles during a visit to the University of Derby Credit: Simon Walker / HM Treasury 2 Households face council tax hikes and £10billion in stealth levies Credit: Getty Businesses are reeling from the National Insurance rise, a jump in the minimum wage and ongoing uncertainty over Donald Trump's global trade war. Economists warned the circumstances meant tax hikes are almost certain this autumn — along with hard-pressed town halls having to up council tax rates by five per cent next year to pay for local services. Former Office for Budget Responsibility committee member Andy King said 'the writing was on the wall for another fiscal hole' — which would trigger tax rises or possible spending cuts in the Budget. Another expert accused Ms Reeves of 'making up numbers' in her spending review as there were few clues where savings would be found. Advertisement READ MORE ON SPENDING REVIEW TAX BLOW Council tax bills to rise at fastest rate in 20 years after Reeves' review Paul Johnson, from the Institute for Fiscal Studies, said her demands that all Whitehall departments cut administration budgets by ten per cent a year were not the result of a 'serious analysis'. He also said that if Ms Reeves was forced to raise taxes, the most politically straightforward approach would be to extend the freeze on income tax thresholds. Mr Johnson added that her plans will result in a 'sting in the tail' because local authorities would have to raise their levies. More than half of Brits — 52 per cent — reckon Ms Reeves' spending review will have a negative economic impact rather than positive. Advertisement But one piece of good news did emerge yesterday, as it was revealed the UK was finally ready to sign its trade deal with the US.

Households face council tax hikes and £10billion stealth levies as Reeves gets boxed into corner by shrinking economy
Households face council tax hikes and £10billion stealth levies as Reeves gets boxed into corner by shrinking economy

The Sun

timean hour ago

  • The Sun

Households face council tax hikes and £10billion stealth levies as Reeves gets boxed into corner by shrinking economy

HOUSEHOLDS face council tax hikes and £10billion in stealth levies as Rachel Reeves gets boxed into a corner by the shrinking economy, experts warn. The Chancellor, who wore protective goggles during a visit to the University of Derby yesterday, learned growth fell 0.3 per cent in April — less than 24 hours after her £113billion spending review splurge. 2 2 Businesses are reeling from the National Insurance rise, a jump in the minimum wage and ongoing uncertainty over Donald Trump's global trade war. Economists warned the circumstances meant tax hikes are almost certain this autumn — along with hard-pressed town halls having to up council tax rates by five per cent next year to pay for local services. Former Office for Budget Responsibility committee member Andy King said 'the writing was on the wall for another fiscal hole' — which would trigger tax rises or possible spending cuts in the Budget. Another expert accused Ms Reeves of 'making up numbers' in her spending review as there were few clues where savings would be found. Paul Johnson, from the Institute for Fiscal Studies, said her demands that all Whitehall departments cut administration budgets by ten per cent a year were not the result of a 'serious analysis'. He also said that if Ms Reeves was forced to raise taxes, the most politically straightforward approach would be to extend the freeze on income tax thresholds. Mr Johnson added that her plans will result in a 'sting in the tail' because local authorities would have to raise their levies. More than half of Brits — 52 per cent — reckon Ms Reeves' spending review will have a negative economic impact rather than positive. But one piece of good news did emerge yesterday, as it was revealed the UK was finally ready to sign its trade deal with the US.

Slump fears fuel summer interest rate cut hopes as figures show economy shrank by 0.3% in April
Slump fears fuel summer interest rate cut hopes as figures show economy shrank by 0.3% in April

Daily Mail​

time2 hours ago

  • Daily Mail​

Slump fears fuel summer interest rate cut hopes as figures show economy shrank by 0.3% in April

Hopes of a summer interest rate cut mounted yesterday after dismal official figures showed the economy shrank by a bigger-than-expected 0.3 per cent in April. Experts said the setback added weight to the case for a reduction in August. Rate-setters meet next week but few think a cut will come that soon. Markets are now betting a summer cut will be the first of two this year, taking the Bank of England rate down to 3.75 per cent. Some economists think the Bank will move faster in what would be a welcome boost for millions of borrowers with mortgages. Experts at Bank of America said: 'We continue to expect cuts in August, September and November.' Morgan Stanley researchers said more evidence of weakness in the economy looks 'likely to materialise' over the second half of the year 'and we expect a rate cut in August, and year-end rate at 3.25 per cent'. The gross domestic product (GDP) contraction for April was worse than the 0.1 per cent dip forecast by economists. It was blamed on Labour's national insurance hike, which took effect that month, as well as Donald Trump's tariff wars. Another factor was the end of the stamp duty holiday, which supercharged businesses linked to housing in March but which then saw activity fall off afterwards. The downturn took the wind out of Labour's sails after Britain enjoyed GDP growth of 0.7 per cent in the first quarter. Chancellor Rachel Reeves admitted the figures were 'clearly disappointing'. And they added to the gloom after data this week showed that more than a quarter of a million jobs have been lost since her tax-raising Budget in the autumn. Elizabeth Martins, senior UK economist at HSBC, said the GDP figures were consistent with a small contraction in the second quarter. 'It's not that the economy is heading to recession: this data just strengthens the view that the apparent acceleration in the first quarter was probably too good to be true,' she said. 'This probably adds to the case for an August cut.' Boost for mortgages Falling mortgage rates are helping the housing market to recover. Surrey housebuilder Crest Nicholson nonetheless said it sold fewer homes – 739, down from 798 – over the first half of its financial year. Chief executive Martyn Clark said that while the global economy was uncertain, there were 'encouraging signs in the UK'. He said: 'The market is starting to benefit from increased lender support and better mortgage affordability as the interest rate environment starts to ease. However, we remain a long way from a buoyant market.' Profits jumped to £7.9million in the six months to the end of April, from £2.6million.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store