Roads budget may fund rail shortfall

The multi- billion pound fund earmarked for improving Britain's roads may have to be raided to help the railways, Government ministers have warned.

Plans being considered by Transport Secretary Stephen Byers would mean a predicted shortfall in rail spending would be met from some of the £60billion set aside last summer for roads.

It follows the Chancellor's pre-budget statement last week which made it clear that the priority is going to be health and education. Transport minister John Spellar said today: "We'll have to look at what the requirement is. We will then have to look at the balance between a variety of modes of transport."

Several billion pounds may be taken out of funds earmarked for road projects due for completion later this decade under the Government's-10-year transport-plan. A spokesman for the transport department has said there would be no question of the roads budget suffering, as the money would eventually be repaid.

But the news has worried motoring organisations. Edmund King of the RAC Foundation said: " Eighty five per cent of passenger travel is roads based. Transport investment should be about all forms of transport. It shouldn't be stealing from one to pay for another."