Autumn Statement: £1 billion investment into Britain's roads
Britain’s roads will benefit from an extra £1 billion of investment, Chancellor George Osborne announced in the Autumn Statement this afternoon.
Improvement work includes upgrading sections of the A1 between London and Newcastle, a new link from the A5 to M1, a widening of the A30 in Cornwall, and upgrading the M25 around London.
Meanwhile, rail projects announced included extending the proposed HS2 high-speed trainline that will run between London to Birmingham on to West Yorkshire and the North West.
Transport for London (TfL) will also receive a £1 billion loan to extend London's Northern Line to Battersea Park.
The government has also capped the average rise in regulated rail fares and TfL season tickets to the retail prices index measure of inflation (currently 3.2%) plus 1% for two years from January 2013.
Currently, the cap is RPI plus 3%.
The cap will benefit a quarter of a million of season ticket holders, according the Prime Minister.
Replaced as the official measure of inflation by the consumer prices index (CPI) in December 2003. Both the Retail Price Index and CPI are attempts to estimate inflation in the UK, but they come up with different values because there are slight differences in what goods and services they cover, and how they are calculated. Unlike the CPI, the RPI includes a measure of housing costs, such as mortgage interest payments, council tax, house depreciation and buildings insurance, so changes in the interest rates affect the RPI. If interest rates are cut, it will reduce mortgage interest payments, so the RPI will fall but not the CPI. The RPI is sometimes referred to as the “headline” rate of inflation and the CPI as the “underlying” rate.
An increase in the general level of prices that persists over a period of time. The inflation rate is a measure of the average change over a period, usually 12 months. If inflation is up 4%, this means the price of products and services is 4% higher than a year earlier, requiring we spend and extra 4% to buy the same things we bought 12 months ago and that any savings and investments must generate 4% (after any taxes) to keep pace with inflation. Since 2003, the Bank of England has used the consumer prices index (CPI) as its official measure of inflation (see also retail prices index).