Transport - real spending is making a real difference

The Chancellor's Spending Review announcement on 12 July means that DfT's spending will grow by an annual average of 4.5% in real terms between 2005-06 and 2007-08. This not only meets the rising profile of expenditure set out in the 10 Year Plan, but includes an additional £1.7 billion transport reform package to meet immediate pressures.

There will also be a £0.5 billion annual uplift to the 10 Year Plan from 2006-07 onwards. These increases mean that DfT's expenditure in 2007-8 will be over £2.4 billion higher than in 2004-5 and that total expenditure by the Department over the three years to April 2008 will exceed £37 billion.

As part of this settlement, the DfT will be undertaking a number of delivery reform measures. These will include £785m annual efficiency savings by 2007-08, key reforms arising from the Rail Review, improving the appraisal of transport investment choices, and a greater involvement of local authorities and regional bodies in the decision-making process over transport investment.

The Secretary of State for Transport, Alistair Darling, said:

"Transport is a high priority for the Government and my department is determined to deliver the outcomes that the travelling public and taxpayer desire. This settlement will allow us to continue the progress we have made in delivering the Government's 10 Year Plan for Transport. We will be shortly publishing our long-term strategy for Transport, which will update the 10 Year Plan and roll forward the funding plans to 2014-15."

Before the latest announcement, government spending on transport was already unprecedented and, particularly for most people's journeys, had already achieved results.

Since the launch of the 10 Year Plan in 2000, around £40 billion has been spent on transport. As a result, of the Spending Review, annual expenditure by 2007-08 will be over 60% more in real terms than a decade ago. There are no quick fixes, but real improvements have been delivered.

Around £73 million was spent every week in the last financial year on the national rail system and a similar amount was spent by the private sector.

One notable result is the first phase of the new high speed Channel Tunnel Rail Link that has opened on time and on budget. Another result is the £7.6bn upgrade on the West Coast Main Line that will cut journey times from Scotland to London. While for trains in general, over one third of rolling stock is currently being replaced.

In fact, over 1 billion passengers used the trains in the year to April 2004 - a 25 per cent increase on 1997 and the highest number since 1961.

The 10 Year Plan in 2000 increased our commitments to bus and coach travel in England. Across the country, not only has the long-term decline in bus use been reversed, there has also been a 3 per cent increase between April 2001 and March 2003.

Under £2 billion was spent on strategic roads in England in the last financial year, while £2.6 billion was given to local authorities for road maintenance for this financial year.

As a result, drivers are experiencing a difference. Traffic in the morning peak hours is speeding up with average speeds in 2003 0.9 miles per hour faster than in 2001 and 1.6 miles per hour in the off peak hours.

Road improvement projects include the M6 toll road, which has opened ahead of schedule and on budget and is easing pressure on the Midlands road network. To deal with congestion around Heathrow, the M25 is being widened.

The Highways Agency has made improvements on eighteen major trunk roads in the last two years with ten more currently under construction. There are numerous smaller schemes to improve safety and tackle congestion.

These are a few examples of the improvements due to government spending. The Government, in partnership with other transport bodies, wants to build a modern, efficient transport system that is also safe, reliable and respects the environment - a system that works for everyone.

There is still a lot to do but the increased investment in Britain's transport is making a real difference.

Treasury's press notice on transport:
http://www.hm-treasury.gov.uk/spending_review/spend_sr04/press/spend_sr04_press25.cfm

The Treasury's Spending Review:
http://www.hm-treasury.gov.uk/spending_review/spend_sr04/spend_sr04_index.cfm