Annex A - Spending Review 2004 CM 6234

Annex A

• We have honoured our commitment to deliver sustained investment in transport.
• Total public spending by the Department for Transport over the three years of the spending review will exceed £37 billion. This includes an additional £1.7 billion to meet immediate pressures and £0.5 billion annual uplift to the 10 Year Plan from 2006-07 onwards.
• Public spending on transport is forecast to rise in line with the expected growth in the economy to 2015.
• These spending plans underpin the targets we have set for transport, set out in Annex B.

Spending plans	SR2004 allocations				Long Term Funding Guideline for Transport
£ billion (cash) (1)	04-05	05-06	06-07	07-08	08-09	09-10	10-11	11-12	12-13	13-14	14-15
Resource spending	4.6	5.4	5.8	5.7	6.0	6.3	6.6	6.9	7.3	7.6	8.0
Investment spending	6.2	6.4	7.6	6.8	7.2	7.6	7.9	8.3	8.8	9.2	9.7
Total	10.7	11.7	13.4	12.5	13.2	13.8	14.5	15.3	16.0	16.8	17.7

Notes:
(1) Figures show spending within DfT's Departmental Expenditure Limit, including spend on DVO Group agencies and the Maritime and Coastguard Agency. Excludes spending on departmental administration and non-cash accounting charges.
(2) Does not include the Community Infrastructure Fund.
(3) These figures exclude local authorities' revenue spending on transport, which is channelled through the Office of the Deputy Prime Minister.

The Government will ensure that the resources being made available deliver the greatest possible benefits.

• We will make better trade-offs across different modes of transport, and across the parallel agendas of regeneration and housing. We intend to publish guideline budgets for English regions, following consultation, in Budget 2005. These budgets will allow national, regional and local stakeholders to reach a shared position on funding priorities and objectives.
• We will give delivery partners incentives to develop and deploy coherent, innovative, local and regional transport strategies that rise to the challenges set out in this document. We will establish a new Transport Innovation Fund, to support the costs of innovative and coherent transport measures - which will include road pricing, modal shift, and better bus services. And we will also support innovative mechanisms which raise new funds locally. Mechanisms for deciding on allocations from this Fund will be published alongside regional guideline budgets in Budget 2005 with a view to making the first allocations in 2006.

Transport spending, 1994-95 to 2014-15

Notes:

(1) Figures from 1994-95 to 2000-01 are those published in Transport 2010: The 10 Year Plan, amended to include the Driver, Vehicle and Operator agencies and the Maritime and Coastguard Agency and to reflect the transfer of responsibility for Scottish rail services to the Scottish Executive.

(2) Figures from 2001-02 to 2010-11 are those published in Delivering Better Transport: Progress Report, amended to include spending on the Driver, Vehicle and Operator agencies and the Maritime and Coastguard Agency and to reflect the transfer of responsibility for Scottish rail services to the Scottish Executive. Figures for years after 2010-11 include an annual inflation uplift.

(3) Spending Review 2004 allocations show the Departmental Expenditure Limit (DEL) for DfT as amended in Spending Review 2004 White Paper Stability, security and opportunity for all less non-cash accounting charges and administration spending. Figures do not include Community Infrastructure Fund spending.

(4) Transport Innovation Fund - the above graph illustrates the way in which the new Transport Innovation Fund would be established within the Department for Transport spending plans to 2014-15. Details of the operation and size of the new fund will be announced alongside Budget 2005.