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16 June 2015

Transport subsidies are an inequality issue. No, really

What government chooses to subsidise - trains - and what it chooses to cut - buses - says more about its commitment to reducing inequality than any number of press releases and warm words.

By Tim Stacey

With the Budget fast approaching there is widespread speculation over government spending plans and where the promised cuts will fall. We know further education, public health and other areas are seeing their funding greatly reduced, in some instances fueling intense debate. But other areas are receiving comparatively little attention.

The latest records show the government spends £5.4bn on public transport subsidies. That’s more than double the amount spent on NHS A&E services across the country, so hardly small change. And yet the value of this subsidy seems to have gone unchallenged. In fact transport subsidies have effectively been guaranteed for the future with promises to freeze rail fares.

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