Boris gets off the bus

As a bold act of redistribution it is hard to beat. Oh, hang on . . .

Boris Johnson will see out New Year's Eve 2009 convinced that he has made it as cheap as possible. London's official fireworks display, which under the "profligate" Ken Livingstone regime lasted ten whole minutes, will be reduced to a mere seven and a half minutes.

Free rail travel will be scrapped, and Boris will enter 2010 having scrimped several hundred thousand pounds off the mayor's budget.

This is all part of Boris's drive to "ease the burden" of City Hall on taxpayers. However, as Boris counts his pennies, the rest of the capital will wake to the largest set of multimillion-pound fare rises brought in by a London mayor.

Boris will increase single bus fares by 20 per cent, with "hard-pressed families" paying hundreds of pounds more a year. And while the average household has saved just 11p a week from Boris's tax freeze, Boris will take hundreds of millions of pounds extra in fare revenue during his term.

These rises will help close the financial black hole created by the removal of the western extension of the congestion charge, but will also go towards much-needed improvements to the Underground. They will also help fund initiatives such as his bike hire scheme.

But while some of the extra burden may be necessary, it is how Boris has chosen to share the burden that is most revealing.

Boris will protect those Londoners most able to pay by freezing the price of almost all season tickets for the year. Meanwhile, he will raise single bus fares by a third from the level he inherited. Overall, bus users will be hit hardest by the rises.

As a bold act of redistribution, it is hard to beat, with Boris asking those least able to pay to subsidise those most able to pay.

This is reportedly a worry for the Conservative leadership: David Cameron's aides are quoted as saying that Boris is "making us look bad". But although Cameron is keen not to scare off voters before an election, Boris is merely doing what most Conservatives would have expected him to do once in power.

Ken Livingstone famously had a policy of shifting people out of their own vehicles and on to public transport. For a self-proclaimed cycle- and car-loving libertarian, this was always going to be anathema.

To shift the balance, Boris plans to raise fares, halve the size of the congestion charge zone, reduce the level of bus subsidy and pour millions into making London the "electric car capital of the world".

Whether masses of Londoners will ever follow Boris's electric dreams remains to be seen.

But while the mayor can easily afford to take part in his "electric car revolution", for most Londoners the real revolution will be an ever-increasing burden from Boris in fares.

Adam Bienkov is a blogger and journalist covering London politics and the mayoralty.

 

Follow the New Statesman team on Twitter.

Adam Bienkov is a blogger and journalist covering London politics and the Mayoralty. He blogs mostly at AdamBienkov.com

Getty
Show Hide image

The 5 things the Tories aren't telling you about their manifesto

Turns out the NHS is something you really have to pay for after all. 

When Theresa May launched the Conservative 2017 manifesto, she borrowed the most popular policies from across the political spectrum. Some anti-immigrant rhetoric? Some strong action on rip-off energy firms? The message is clear - you can have it all if you vote Tory.

But can you? The respected thinktank the Institute for Fiscal Studies has now been through the manifesto with a fine tooth comb, and it turns out there are some things the Tory manifesto just doesn't mention...

1. How budgeting works

They say: "a balanced budget by the middle of the next decade"

What they don't say: The Conservatives don't talk very much about new taxes or spending commitments in the manifesto. But the IFS argues that balancing the budget "would likely require more spending cuts or tax rises even beyond the end of the next parliament."

2. How this isn't the end of austerity

They say: "We will always be guided by what matters to the ordinary, working families of this nation."

What they don't say: The manifesto does not backtrack on existing planned cuts to working-age welfare benefits. According to the IFS, these cuts will "reduce the incomes of the lowest income working age households significantly – and by more than the cuts seen since 2010".

3. Why some policies don't make a difference

They say: "The Triple Lock has worked: it is now time to set pensions on an even course."

What they don't say: The argument behind scrapping the "triple lock" on pensions is that it provides an unneccessarily generous subsidy to pensioners (including superbly wealthy ones) at the expense of the taxpayer.

However, the IFS found that the Conservatives' proposed solution - a "double lock" which rises with earnings or inflation - will cost the taxpayer just as much over the coming Parliament. After all, Brexit has caused a drop in the value of sterling, which is now causing price inflation...

4. That healthcare can't be done cheap

They say: "The next Conservative government will give the NHS the resources it needs."

What they don't say: The £8bn more promised for the NHS over the next five years is a continuation of underinvestment in the NHS. The IFS says: "Conservative plans for NHS spending look very tight indeed and may well be undeliverable."

5. Cutting immigration costs us

They say: "We will therefore establish an immigration policy that allows us to reduce and control the number of people who come to Britain from the European Union, while still allowing us to attract the skilled workers our economy needs." 

What they don't say: The Office for Budget Responsibility has already calculated that lower immigration as a result of the Brexit vote could reduce tax revenues by £6bn a year in four years' time. The IFS calculates that getting net immigration down to the tens of thousands, as the Tories pledge, could double that loss.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

0800 7318496