year, and it became notorious for being used for other government purposes. Winston Churchill opposed the Road Fund, saying: In 1926 as Chancellor of the Exchequer Churchill sought, successfully, to redirect a third of payments as taxation on luxury and pleasure uses with the stated aim of putting competition between road and rail on a fair basis. At the same time, the majority of road building and maintenance costs were met from general and local taxation. In 1932 Lieut. Colonel Moore-Brabazon said in a debate in the House of Commons about the Road Fund: Winding up Hypothecation of VED into the Road Fund was formally ended under the Finance Act 1936, in accordance with the recommendations of the Salter Report that controversially sought to introduce a balance between the road haulage industry and the railways. It had concluded that the method of road funding, which had relied on parishes and local authorities to fund a portion of the road network through their own means, represented a subsidy to the road hauliers. After the 1936 Act the proceeds of road vehicle duties were to be paid directly into the Exchequer. The Road Fund itself was finally wound up in the Miscellaneous Financial Provisions Act 1955, becoming a system of funding through government grants. See also Vehicle Excise Duty References Road transport in the United Kingdom Transport economics Transport policy in the United Kingdom