Burden on the ratepayers
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CM's report "LRT in decline" (January 5) was correct to point out that bus services will decline under LRT's new business plan for 1985/6, but the suggestion that ratepayers will pay less next year is incorrect.
In practice London ratepayers will pay an extra £73m towards LRT in 1985/6 compared with 1984/5 — an increase of 35 per cent — if Government plans succeed! The figures in LRT's Business Plan exclude some £69m that ratepayers will have to find to finance the debt charges on capital investments made in previous years.
The LRT Act changed the method of financing capital from borrowing (as when LT was under GLC control) to the present scheme of financing each year's capital costs from rates and taxes in the year they occur. This puts up next year's burden on the ratepayers significantly.
DAVE WETZEL Greater London Council Transport Committee Chairman