Pre-budget 2007: tailored to cut carbon?

• Budget includes report on low-carbon cars
• Criticism about widening motorways
• Clampdown on VED evasion

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Ways of developing low-carbon cars were highlighted in the Government's pre-budget report yesterday - but there was criticism over plans to widen motorways.

The Chancellor of the Exchequer, Alistair Darling, included the interim King Review of low-carbon cars in his budget, which examines vehicle and fuel technologies that could help 'decarbonise' road transport over the next 25 years.

Among its key points were the following:

• In the long term, decarbonisation of road transport is attainable but will require clean power sources and major breakthroughs in technology;

• In the meantime, there are many ways to reduce emissions immediately and at low cost;

• Vehicle technology exists that could cut carbon dioxide emissions by 30% compared with today's cars, and these could be standard within 5-10 years if car manufacturers see a market for them;

• Motorists have a role to play, too - they can choose the most efficient vehicle in any class, and reduce their own carbon dioxide emissions and fuel bill by 25% by 'greener' driving;

• Fuels have to be considered on the emissions they create over their life cycle. For example, biofuels offer the potential for carbon dioxide savings, but they mustn't be allowed to expand too quickly before their impact on the environment is safeguarded.

The Chancellor said: 'With new technology and cleaner power, we could cut carbon emissions from cars by up to 80 per cent.

'I will bring forward proposals at the Budget after Professor King’s final report, on ways to encourage the next generation of cleaner cars and incentives for people to buy them.'

Low-carbon cars, but wider motorways
Despite an obvious environmental thread within the pre-budget report - there was tax on flights rather than passengers, for example - there was criticism of the Chancellor's decision to widen some motorways.

By 2010, the transport budget will rise to £14.5bn a year, including projects to widen the M1 and M25 - and that's a mistake, says the Campaign for Better Transport.

The campaign's executive director Stephen Joseph said: 'The UK is the second most car-dependent country in Europe, so although we welcome increased spending on local transport and rail, we're concerned at the planned widening of the M1 and M25.

'These are very expensive - £1000 an inch at the last count - and will simply move the congestion around while adding to traffic, car-based development and carbon emissions.'

Others, though, felt it wasn't enough. Edmund King, executive director of the RAC Foundation said: "While any increase in transport spending is welcome, we need to see a greater proportion spent on roads.

'The motorist will view the recent fuel duty increase and proposals for yet more increases over the next two years as money for nothing unless the road infrastructure is improved.'

Other road news
In his report, the Chancellor also announced his intention to clamp down on road tax evasion, which is costing the Treasury millions each year.

However, some felt it wasn't enough. 'The Chancellor has missed an opportunity by failing to match his Vehicle Excise Duty (VED) evasion clampdown with an attack on car insurance dodging.' said Alec Murray, chairman of the Retail Motor Industry Federation (RMIF).

There are 27 million drivers on Britain's roads, and it is estimated that one in 10 are currently uninsured.