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Transport – Spending Review

  • Published: Thursday, 21 October 2010

The Chancellor announced spending plans for transport as part of the Spending Review, including rail and road improvement projects.

Transport projects budget for next four years

The Chancellor announced transport spending plans that will deliver savings through efficiency, high value-for-money investments and improving accountability and the way transport networks are run.

The government announced plans for spending £30 billion on transport projects in the next four years as part of the Spending Review. £18 billion of this will be for maintenance and investment in the rail network, including Crossrail.

Government subsidies to bus companies will be reduced by 20 per cent but free bus travel for disabled and older people will remain.

Rail fares

The cap on rises in regulated rail fares will rise to the Retail Price Index (RPI - the figure used by the government to measure price increases) plus 3 per cent from 2012. So, if the RPI is 2 per cent, regulated rail fares could rise by up to 5 per cent.

Regional plans for road and rail in England

The Chancellor announced regional rail and road projects in England that would go ahead over the next four years, including:

Eastern England

In eastern England the A11 will be upgraded.

East Midlands

In the East Midlands, the M1 and A46 will be improved.


The M25 will be widened between ten junctions and the improvement to the A3 at Hindhead will be completed. Crossrail will go ahead and funding will be provided for the upgrade of important tube lines.

North East

In the North East, £500 million will be spent refurbishing the Tyne & Wear metro and the Tees Valley bus network.

North West

The government will invest in rail electrification between Manchester, Liverpool, Preston and Blackpool. Funding will be provided for a new suspension bridge over the Mersey at Runcorn.

South West

Improvements to the M5 and M4 and a new transport scheme for Weymouth will be funded.

Yorkshire and Humber

Investment on the M62 will allow higher traffic capacity and £90 million will be spent to improve rail platforms across the region.

West Midlands

The Midland Metro will be extended and Birmingham New Street station will be redeveloped.

Road and rail in Scotland and Wales

Rail and roads are devolved to the Scottish executive, as are roads in Wales. However, the Chancellor announced that major rail investment around Cardiff, Barry and Newport will go ahead.

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