Hammond rules out road pricing and fuel duty hikes as he takes over at DfT


New Secretary of State for Transport Philip Hammond has ruled out highway pricing and said he will 'stabilise’ fuel prices for motorists, but recognized that motoring has got to be greener.

We will end the war on motorists, said the conventional MP for Runnymede and Weybridge. Motoring has got to get greener but the car is not going to go out.

Hammond said the new Conservative-Liberal Democrat alliance administration will hold a consultation on stabilising the cost of fuel so that petrol prices don’t go up if there is an increase in world oil prices. The Liberal Democrats had talked of an augment in fuel duty.

Hammond also confirmed the new management would not introduce road pricing on existing roads, a measure that had been supported by the Liberal Democrats in their manifesto. However, tolls may be introduced on latest roads.

As well as road transport, in his new role Hammond will also be accountable for rail and air transport. Here there are more areas of accord between the Tories and the Lib Dems.

In their coalition agreement, released on Wednesday, they confirmed that they would ascertain a high-speed rail network and cancel the third runway at Heathrow as well as decline additional runways at Gatwick and Standsted.

The Conservatives have, however, bowed to broadminded Democrat demands to replace the air passenger duty with a per flight duty.

On the issue of a £30 billion road building programme planned by the previous Labour administration and opposed by the Liberal Democrats, Hammond recognized the Government would have to look at new and original ways of funding them.

Hammond has been joined at the Department for Transport by conventional MP Theresa Villiers.


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