DEPARTMENT FOR
TRANSPORT News Release (140) issued by The Government News Network
on 9 October 2007
Funding for
Crossrail announced
The 2007 Comprehensive Spending Review underlines the
Government's continued commitment to reliable and efficient
transport networks by confirming the 21/4 per cent annual real
increase in the Department's programme budget set out in the
Long Term Funding Guideline for transport announced in the 2004
Spending Review.
The 21/4 per cent real growth Long Term Funding Guideline will be
extended to 2018-19 allowing the Department to continue to plan on
a 10 year horizon, meaning that in the 20 years from 1997-98 UK
transport spending will have more than doubled in real terms.
These increases allow the Department to contribute over £5
billion to Crossrail, the Government's share of the overall
cost of up to £16 billion. Subject to Royal Assent of the
Crossrail Bill, construction will be taken forward as a single
programme, with first services planned to come into operation
during 2017. Services to all stations on the route are expected
to build up incrementally over twelve months.
The Department has committed over £15 billion to the railways to
enhance capacity and improve safety and reliability on trains
between 2009 and 2014. This includes a programme to modernise the
Thameslink line, the addition of 1,300 carriages to increase
capacity on key routes, an extensive programme of station
improvements and £200 million of investment in a strategic rail
freight network.
The Review will also allow for the creation of an enhanced
national concessionary travel scheme so that residents of England
aged 60 and over and eligible disabled people will be entitled to
free off-peak local bus travel anywhere in England from 1 April 2008.
The Secretary of State for Transport, Ruth Kelly, said,
"This settlement confirms that investment in public
transport will continue to grow in real terms bringing sustained
improvements for the travelling public. The historic commitment to
deliver Crossrail will support Britain's economic growth and
relieve the pressure on the tube by carrying around 200 million
passengers a year. The extension of concessionary fares, the focus
on local and regional transport as well as the increased capacity
on the rail network will bring tangible improvements to
passengers' journeys."
Notes for Editors
1. DfT's programme budget will grow by 21/4 per cent per
year on average in real terms over the CSR period. Average annual
real growth for the Department as a whole will be 2.1 per cent due
to savings in DfT's administration budget, which will fall by
5 per cent a year in real terms.
2. The additional funding provided by the 2007 CSR settlement
will be accompanied by value for money reforms realising annual
net cash-releasing savings of £1.8 billion by 2010-11.
3. Crossrail's expected cost of up to £16bn will be met by
Government, businesses and farepayers, each contributing around
one third:
*- Government will contribute by means of a grant from the
Department for Transport of over £5 billion during
Crossrail's construction;
- Crossrail farepayers will ultimately contribute around another
third of the cost, with projected operating surpluses used to
service debt raised during construction by Transport for London,
and by Network Rail in respect of the works on the national rail network;
London businesses will contribute broadly another third through a
variety of mechanisms:
- direct contributions have been agreed with some of the
project's key beneficiaries along the route. Canary Wharf
Group has agreed to make a significant contribution to the
Project, and will in addition be responsible for delivering the
Isle of Dogs station on advantageous terms. The City of London
Corporation will make a significant contribution from their own
funds, and will assist in delivering additional voluntary
contributions from the largest London businesses. The Government
will offer the Corporation its support, where necessary, to
deliver these additional contributions. BAA have also agreed in
principle to make a financial contribution
- the Government is separately publishing a White Paper setting
out its proposal to introduce a power for local authorities to
raise supplementary business rates to fund economic development.
Following discussions with Government, the Mayor has indicated
that, subject to appropriate consultation, he envisages using
these powers to levy a supplement of 2 pence per pound of Rateable
Value across London from April 2010, with relief for businesses
with a Rateable Value below £50,000, which will be used to service
£3.5bn debt raised by the Mayor during construction.
- the Mayor has further indicated that he envisages securing
contributions from property developers, particularly those who
develop in the vicinity of Crossrail stations, and that subject to
any appropriate obligations such as Examination in Public, he
expects to bring forward London Plan alterations to this effect.
4. The 2007 CSR settlement also provides for:
- significant investment in roads, supporting Sir Rod
Eddington's three recommended strategic economic priorities
for transport policy of congested and growing city catchments, key
inter-urban corridors and key international gateways; and
- support for local road pricing schemes to tackle congestion,
combined with public transport investment, subject to appropriate
proposals coming forward. Greater Manchester has already submitted
a proposal and other areas considering them include the West
Midlands, Tyne & Wear, Cambridgeshire, Shropshire, Durham,
East Midlands, Reading, Norfolk and Bristol.
Table
Department for Transport baseline and additions
£ Million
Baseline Additions
2007-08 2008-09 2009-10 2010-11
Resource DEL 6,274 169 219 399
Of which 5,678 479 472 380
near-cash
Of which 290 -8 -15 -21
administration
Capital DEL 6,660 633 954 1,452
Total DEL 12,556 842 1,219 1,909
£ Billion
Estimate2007 Projections2008-09 2009-10 2010-11
-08
Total UK 20.0 21.9 22.5 23.7
transport
1 Full resource budgeting basis, net of depreciation.
2 UK transport measured consistently with international
definitions from the UN classifications of the functions of
government (COFOG). Actual outcomes are subject to spending
decisions by local authorities and devolved administrations. These
figures reflect HM Treasury's latest indicative assumptions
on the expenditure of local authorities and devolved administrations.
5. For further details of DfT's settlement and Departmental
Strategic Objectives over the CSR07 period, please see The 2007
Pre-Budget Report and Comprehensive Spending Review: Meeting the
aspirations of the British people http://www.hm-treasury.gov.uk/pbr_csr/pbr_csr07_index.cfm
6. The Government today announced 30 cross-departmental Public
Service Agreements, setting out the top priorities for the CSR07
period. For further details on these please see: http://www.hm-treasury.gov.uk/pbr_csr/pbr_csr07_index.cfm
Public Enquiries: 020 7944 8300
Department for Transport
Website: http://www.dft.gov.uk