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Transport funding to rise to £14.5bn a year by 2010

Chancellor Alistair Darling has outlined spending plans to 2010 that include increasing transport spending to £14.5bn and a £800M annual spend on flood defences.

But both moves have been dubbed as old news. On the transport spend, AA Motoring Trust head of policy Paul Watters said:

"The previous CSR announcement from July 2004 – "Future for Transport" – said that funding would go up to £14.5 billion by 2010-11 – so this announcement is in line with long term funding guidelines so in that respect it does appear to be where we were intending to be.

"Although current spending is falling a bit short of what they said – this year spending will be about £9bn."

Darling said in his pre-Budget report and Comprehensive Spending Review statement that it was a time of "increased economic uncertainty" with "turbulence in America, Asia and Europe" and that there would be "no risks with unaffordable promises that put the public finances at risk".

UK economic growth is expected to be between 2% and 2.5% next year, the chancellor said. And for 2009/2010 it is 2.5% to 3%.

In summary Darling has pledged that by 2010 the transport budget will rise to £14.5bn a year, including projects to widen the M1 and M6.

The Department for the Environment, Food and Rural Affairs budget will rise to £4bn in three years' time, including £800m by 2010 for flood defences.

Darling said aviation duty would be paid on flights, rather than individual passengers.

The overseas aid budget will rise to £9bn by 2010.

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