Darling welcomes transport increase

Monday, 12 July 2004 12:00 AM

The Transport Secretary has said that the increased transport settlement announced by the Chancellor this afternoon will enable the department to progress on delivering the Government's ten-year transport plan.

In today's Comprehensive Spending Review (CSR) the Chancellor announced a 4.5 per cent real term increase in spending by 2008, a £2.4 billion rise.

However, the Department of Transport (DfT) will also be required to make substantial efficiency savings of £785 million.

The savings are anticipated to come primarily from "staff reduction and relocation programmes, improved procurement regimes and rationalisation of back office and support functions."

The savings will be put back into front-line services and the DfT has been tasked to "improve methodologies for appraising transport investment choices."

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 Ten Year Plan for Transport."

Mr Darling is expected to shortly publish the DfT's long term transport strategy, which will update the existing ten year plan.

The transport settlement includes a £1.7 billion transport reform package, over and above the ten year plan to "meet immediate pressures" and "advance key reforms in priority areas".

The Chief Secretary to the Treasury, Paul Boateng, said: "This settlement underlines the Government's determination to ensure that the UK develops a modern, efficient transport system. This funding exceeds the profile set out in the 10 Year Plan for Transport, and ensures that the wider benefits of transport investment continue to be reflected in higher levels of productivity and economic growth, and a better quality of life for everyone."

A number of DfT targets have also been modified, with their rail target "modified to focus on improvements in the performance of train services (defined as reliability and punctuality)."

The DfT will also be given joint responsibility for the climate change targets, specifically reducing transport related greenhouse gas emissions.

Tags: