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‘ An effective transport policy is essential for the success of domestic firms’.
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At the beginning of 2003 the amount of cars recorded in the United Kingdom totalled twenty five million, this is an increase of twenty two million over the last fifty years. As a result road congestion is increasing rapidly and will continue to worsen as car prices fall. Other methods of transport are also a problem. Rail roads and bus services are old and unsafe and are in need of refurbishment. This has resulted in higher fares to cover work costs. According to Ananova (2003) it is predicted that over the next few years train fares could increase by as much as twenty five percent. Due to this less people use public transport and opt for their cars which makes the congestion situation worse. The following essay shows whether an effective transport policy will be able to correct these problems and aid the success for domestic firms. This is done through analysis of current government objectives and research from a wide range of sources. When Labour came to power they promised to reduce the extent of the transport problems through their transport policy. The policy objectives for doing this were to reduce road congestion by 6% and increase the amount of rail passengers by 50%. However according to an article by BBC’s Panorama (2003), transport Secretary Alistair Darling recently admitted that, far from being reduced by 6%, congestion will probably increase by up to 20% the end of the decade. Rail refurbishment is also going slow, showing no real signs of improvement. In order to rectify this situation the government have proposed some preliminary resolutions. Firstly, build and improve more roads. £7.0 billion has been pledged for a road building programme over the next 10 years. This programme includes the widening of the M1 and M25 and the improving of the M11, M18, M42 and M62. However it is believed that all this is impossible on such a budget. Secondly, also as part of this road programme, they are also looking at the possibility of road pricing, this is a separate charge for every mile a person travels via their car on top of tax and petrol charges.
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