Fri Jan 24, 2020 7:13 pm #1742982
PaulB wrote:So will this £106bn cost be swallowed by the government (actually us, the taxpayers) or will it be recouped from the ticket prices of those who use the routes? If they latter how will they be affordable?
The current model is that the fare payer pays the cost of operation and maintenance and the taxpayer pays the cost of enhancement.
Obviously future Governments may change that model - for example until ~ 10 years ago the taxpayer also subsidised the cost of maintenance.
nb: I believe that about 70% of the cost of infrastructure projects typically finds its way back to Government by way of taxation (e.g. £106bn includes VAT, and there will corporation tax on the companies that build it, income tax/NI on the people they employ, etc)