The Tories' cost of living offensive starts with a whimper

The pledge to cap rail fare increases at 6% is unlikely to impress commuters who have suffered 11 years of above-inflation rises.

At the Conservative conference last week, both David Cameron and George Osborne used their speeches to deride Ed Miliband's focus on the "cost-of-living crisis" on the grounds that it was a distraction from the primary task of 'fixing' the economy. But while doing so, the Tories have also recognised that the Labour leader is onto something. 

The day after Cameron's speech it was briefed that the party would soon launch a "blitz" on the cost of living and that Osborne had "identified water bills, rail fares and bank fees as areas where the government can act to help with household bills." After previously dismissing Miliband's proposed energy price freeze as "a gimmick", Cameron notably acknowledged on ITV's The Agenda that the Labour leader had "struck a chord" with the public. 

With real incomes not expected to rise until 2015 and not expected to return to their pre-crash levels until 2023, Tory MPs are rightly warning their leadership not to dismiss the living standards crisis as a temporary ailment that will pass now growth has returned. A recent ComRes survey found that voters think the Tories are more likely to maintain economic growth (42-33%) and to keep public spending under control (47-28%), but also that they believe their own family would be better off under Labour (41-31%). If one party takes a decisive advantage before 2015, it is likely to be that which wins the trust of the public on both issues.

The Tory fightback has begun today with the announcement that rail fare increases will be capped at 6%, with companies barred from raising individual fares by more than 2% above RPI inflation, rather than the current limit of 5% (provided that the average rise is 1% above inflation). Ministers say that the move could save commuters around £20 a month but with fares still set to rise above inflation for the eleventh year in a row (while average earnings fall for the sixth year in a row), it's rather small beer. Labour has been able to hit back by pointing out that the move doesn't go as far as its pledge to limit all fare increases to 1% above inflation and former transport secretary Andrew Adonis has noted that the cap is "less tight" than the one he imposed in 2009-10. 

The Tories are promising "week by week" announcements in the run-up to the Autumn Statement but they'll need to do better than this to wrest the initiative back from Miliband.

David Cameron leaves Number 10 Downing Street on October 7, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Air pollution: 5 steps to vanquishing an invisible killer

A new report looks at the economics of air pollution. 

110, 150, 520... These chilling statistics are the number of deaths attributable to particulate air pollution for the cities of Southampton, Nottingham and Birmingham in 2010 respectively. Or how about 40,000 - that is the total number of UK deaths per year that are attributable the combined effects of particulate matter (PM2.5) and Nitrogen Oxides (NOx).

This situation sucks, to say the very least. But while there are no dramatic images to stir up action, these deaths are preventable and we know their cause. Road traffic is the worst culprit. Traffic is responsible for 80 per cent of NOx on high pollution roads, with diesel engines contributing the bulk of the problem.

Now a new report by ResPublica has compiled a list of ways that city councils around the UK can help. The report argues that: “The onus is on cities to create plans that can meet the health and economic challenge within a short time-frame, and identify what they need from national government to do so.”

This is a diplomatic way of saying that current government action on the subject does not go far enough – and that cities must help prod them into gear. That includes poking holes in the government’s proposed plans for new “Clean Air Zones”.

Here are just five of the ways the report suggests letting the light in and the pollution out:

1. Clean up the draft Clean Air Zones framework

Last October, the government set out its draft plans for new Clean Air Zones in the UK’s five most polluted cities, Birmingham, Derby, Leeds, Nottingham and Southampton (excluding London - where other plans are afoot). These zones will charge “polluting” vehicles to enter and can be implemented with varying levels of intensity, with three options that include cars and one that does not.

But the report argues that there is still too much potential for polluters to play dirty with the rules. Car-charging zones must be mandatory for all cities that breach the current EU standards, the report argues (not just the suggested five). Otherwise national operators who own fleets of vehicles could simply relocate outdated buses or taxis to places where they don’t have to pay.  

Different vehicles should fall under the same rules, the report added. Otherwise, taking your car rather than the bus could suddenly seem like the cost-saving option.

2. Vouchers to vouch-safe the project’s success

The government is exploring a scrappage scheme for diesel cars, to help get the worst and oldest polluting vehicles off the road. But as the report points out, blanket scrappage could simply put a whole load of new fossil-fuel cars on the road.

Instead, ResPublica suggests using the revenue from the Clean Air Zone charges, plus hiked vehicle registration fees, to create “Pollution Reduction Vouchers”.

Low-income households with older cars, that would be liable to charging, could then use the vouchers to help secure alternative transport, buy a new and compliant car, or retrofit their existing vehicle with new technology.

3. Extend Vehicle Excise Duty

Vehicle Excise Duty is currently only tiered by how much CO2 pollution a car creates for the first year. After that it becomes a flat rate for all cars under £40,000. The report suggests changing this so that the most polluting vehicles for CO2, NOx and PM2.5 continue to pay higher rates throughout their life span.

For ClientEarth CEO James Thornton, changes to vehicle excise duty are key to moving people onto cleaner modes of transport: “We need a network of clean air zones to keep the most polluting diesel vehicles from the most polluted parts of our towns and cities and incentives such as a targeted scrappage scheme and changes to vehicle excise duty to move people onto cleaner modes of transport.”

4. Repurposed car parks

You would think city bosses would want less cars in the centre of town. But while less cars is good news for oxygen-breathers, it is bad news for city budgets reliant on parking charges. But using car parks to tap into new revenue from property development and joint ventures could help cities reverse this thinking.

5. Prioritise public awareness

Charge zones can be understandably unpopular. In 2008, a referendum in Manchester defeated the idea of congestion charging. So a big effort is needed to raise public awareness of the health crisis our roads have caused. Metro mayors should outline pollution plans in their manifestos, the report suggests. And cities can take advantage of their existing assets. For example in London there are plans to use electronics in the Underground to update travellers on the air pollution levels.

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Change is already in the air. Southampton has used money from the Local Sustainable Travel Fund to run a successful messaging campaign. And in 2011 Nottingham City Council became the first city to implement a Workplace Parking levy – a scheme which has raised £35.3m to help extend its tram system, upgrade the station and purchase electric buses.

But many more “air necessities” are needed before we can forget about pollution’s worry and its strife.  

 

India Bourke is an environment writer and editorial assistant at the New Statesman.