Green MSP Shiona Baird has accused the Scottish Executive of extravagant “folly” in its belief building new roads is the solution to congestion problems.

The MSP was speaking after it emerged that the cost of VAT on the new Aberdeen bypass could cost as much as £110 million—£30 million more than the road itself was originally supposed to cost.

Construction of the bypass is now going to cost taxpayers an estimated £395 million. Combined with VAT, the total cost will be more than £500 million.

Despite the huge sums of money involved, the bypass will only reduce congestion in Aberdeen by around 2.5%.

Although local roads maintained by councils are exempt from VAT, trunk roads are not.

As well as £110 million for the Aberdeen bypass, Revenue and Customs are demanding £69 million for the M77 extensions south of Glasgow and £44 million for the planned M74 extension into Glasgow city centre.

Ms Baird said that as well as having a minimal effect on traffic levels, the new Aberdeen bypass will also cause more pollution.

Additionally, 19 houses and a school will also have to be knocked down to make way for it.

“When will the Lib Dem transport minister learn that his obsession with large, polluting, unnecessary road projects is costing Scottish taxpayers dearly?” Ms Baird asked yesterday.

“Already this significant extra cost has emerged and it’s highly likely that will not be the last unforeseen rise.

“Aside from the folly of building more roads when we desperately need to reduce traffic levels, this latest farce does little to instil confidence in the minister.”

Ms Baird said Scotland needs more investment in its public transport systems rather than new roads.