Chancellor refuses to back down on Tube PPP plan

Paul Waugh Deputy Political Editor
Thursday 20 December 2001 01:00 GMT
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Gordon Brown, the Chancellor, defied his critics yesterday when he refused to water down his commitment to the controversial public-private partnership (PPP) for London Underground.

Stephen Byers, the Secretary of State for Transport, revealed earlier this month that the Government was considering alternatives in case the PPP option turned out not to offer value for money. But the Chancellor, whose department has been the driving force behind the plan, told council chiefs that he was "convinced" of its merits.

Speaking to the Local Government Association in London, Mr Brown said the Government would "continue our programme of public-private partnerships.

"Whether it be in the London Underground or in the building of new hospitals, I am convinced that instead of the old, sterile divide which pitted public against private, we do best when public and private sectors work together to enhance investment in our transport and infrastructure," he said.

Under the PPP scheme ownership of the Tube would remain in public hands, but commercial companies would operate services. Ken Livingstone, Mayor of London, has argued it would undermine safety by fragmenting control of the network.

Mr Brown's defence of the scheme was part of an impassioned message of commitment to Britain's public services, including a promise to devolve more power from Whitehall to local authorities. Financial support would be granted to allow them to modernise public services, in return for their willingness to work with the private sector.

Mr Brown said he believed in "radical options" and also held out the prospect of local revenue-raising schemes such as congestion charging being started across the country.

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