Hammond rules out road pricing and fuel duty hikes as he takes over at DfT

Louise Bateman

14th May 2010

New Secretary of State for Transport Philip Hammond has ruled out road pricing and said he will 'stabilise’ fuel prices for motorists, but acknowledged that motoring has got to be greener.

"We will end the war on motorists," said the Conservative MP for Runnymede and Weybridge. "Motoring has got to get greener but the car is not going to go away."

Hammond said the new Conservative-Liberal Democrat coalition administration will hold a consultation on stabilising the price of fuel so that petrol prices don’t go up if there is an increase in world oil prices. The Liberal Democrats had talked of an increase in fuel duty.

Hammond also confirmed the new administration would not introduce road pricing on existing roads, a measure that had been supported by the Liberal Democrats in their manifesto. However, tolls may be introduced on new roads.

As well as road transport, in his new role Hammond will also be responsible for rail and air transport. Here there is more areas of agreement between the Tories and the Lib Dems.

In their coalition agreement, released on Wednesday, they confirmed that they would establish a high-speed rail network and cancel the third runway at Heathrow as well as refuse additional runways at Gatwick and Standsted.

The Conservatives have, however, bowed to Liberal Democrat demands to replace the air passenger duty with a per flight duty.

On the issue of a £30 billion road building programme planned by the previous Labour administration and opposed by the Liberal Democrats, Hammond acknowledged the Government would have to look at "new and innovative" ways of funding them.

Hammond has been joined at the Department for Transport by Conservative MP Theresa Villiers.