Comprehensive spending review and Transport

This from the just published HM Treasury Spending Review document

The Spending Review:

• protects high value transport maintenance and investment, including over £10 billion over the Spending Review period on road, regional and local transport schemes, including construction of the Mersey Gateway bridge; £14 billion for Network Rail, including major improvements to the East and West Coast Main Lines; £6 billion for upgrades and capital maintenance on the London Underground network; and funding to enable Crossrail to go ahead;

Transport infrastructure

1.32 High quality transport links are essential to underpin a successful economy. In 2014-15, transport capital investment will be higher in real terms than 2005-06 levels.

1.33 The Spending Review prioritises capital spending on transport projects which can offer high economic returns when compared to investment projects in other sectors. By focusing on projects that deliver greater benefits in return for their costs, the positive impact of capital spending on the wider economy can be maximised:

• over £10 billion will be invested over the Spending Review period on maintenance and investment in new high value road, regional and local transport schemes, while seeking significant cost reductions across the programme. This includes:

• widening the remaining section of the A11 to provide a continuous dual carriageway link between Norwich and the M11;

• improving the junction between the M4 and M5;

• easing congestion on the M1 between junctions 28 and 31;

• extending the route and increasing capacity on the Midland Metro;

• constructing a new suspension bridge over the River Mersey; and

• upgrades to the Tyne and Wear Metro.

• over £14 billion will be provided for Network Rail, supporting maintenance and investment to continue to enhance the capacity and speed of services across the country. In addition, the Government is supporting investment to improve journey reliability on Great Western Main Line services to Wales; and

• funding will be made available to enable Crossrail to go ahead, providing an additional 10 per cent capacity to London’s rail network, while continuing to seek efficiency savings to maximise value for money from the scheme. In addition, £6 billion will be spent on upgrades and capital maintenance on the London Underground network, supporting growth by improving reliability and reducing journey times.

1.34 The Government is also proceeding with its plans to deliver a new high speed rail network from London to Birmingham, and then to both Manchester and Leeds, and will bring forward legislation during this Parliament that would allow the project to proceed.

Supporting long term growth

2.18 Investments of high economic value are protected across all types of transport. The capital allocation has been relatively protected; in 2014-15 DfT capital investment will be higher in real terms than in 2005-06. This includes over £10 billion over the Spending Review period for maintenance and investment in key road and local transport schemes, including widening the remaining section of the A11 to provide a continuous dual carriageway link between Norwich and the M11, improving the junction between the M4 and M5, easing congestion on the M1 between junctions 28 and 31, route extension and capacity increases on the Midland Metro, upgrades to the Tyne and Wear Metro and constructing a new suspension bridge over the River Mersey (the Mersey Gateway) while seeking significant cost reductions across the programme.

2.19 The settlement also includes £14 billion of funding over the Spending Review period to Network Rail to support maintenance and investment, including major improvements to the East Coast Mainline, station upgrades at Birmingham New Street and network improvements in Yorkshire, around Manchester and the Barry to Cardiff corridor. Funding is also confirmed for Network Rail to invest in delivering faster journey times in the North West. In addition, the Government is supporting investment to improve journey reliability on Great Western Main Line services to Wales. Final decisions will be made by DfT after the Spending Review on the replacement of the UK’s inter-city high speed trains.

2.20 Funding will be made available to enable Crossrail to go ahead, providing an additional 10 per cent capacity to London’s rail network while continuing to seek efficiency savings to maximise value for money. £6 billion over the Spending Review period will be spent on maintaining and upgrading the London Underground network, supporting growth by improving reliability and reducing travel times.

2.21 The Government is proceeding with its plans to deliver a new high speed rail network, and will bring forward legislation during this Parliament to allow construction to proceed.

2.22 Key projects that support the Government’s climate change commitment are also protected. This includes an incentive scheme offering up to £5,000 towards the cost of a new ultra-low emission vehicle from January 2011 and supporting electric car charging infrastructure.

2.23 The Government’s intention is to proceed with PFI projects which will deliver sustained improvements in highways maintenance in Sheffield, Hounslow and the Isle of Wight and extend the Nottingham tram network with two new lines. As resources are tight, the Government needs to ensure that every pound is spent to the maximum benefit. The Government will therefore be urgently working with the four local authorities to establish how these projects can be delivered affordably, in order to deliver the much needed benefits.

The Devil is, of course, in the detail which should emerge next week.