Train carriage expansion in doubt

Friday, 4 June 2010 12:00 AM

By politics.co.uk staff

Plans to increase capacity in Britain's railway network have been thrown into doubt as spending cuts trigger a review of train carriage purchases.

Transport secretary Philip Hammond ordered an "urgent reappraisal" after a National Audit Office (NAO) report questioned the value for money of the former government's approach.

Ministers had announced large-scale investment in 2007 when it appeared growth in passenger numbers was set to continue for many years.

Today Mr Hammond said that growth had not materialised and described Labour's plans as being "in tatters".

"The last government claimed it had abolished boom and bust and seemed to believe that taxpayers' money grew on trees; this government will act more responsibly," he said.

"I announced on May 24th a pause in the rolling stock programme. This report makes clear that we need to go further and on the back of its findings I have ordered an urgent reappraisal of the whole programme."

The NAO report warned the Department for Transport (DfT) was unlikely to deliver as much extra capacity as had initially been anticipated.

"These plans were developed in a stronger economic climate," the spending watchdog's chief Amyas Morse said.

"However, we believe that it needs to implement these plans flexibly in light of current conditions, in order to protect value for money, and to be continually looking to drive down the costs of rail improvement works."

The 30-year strategy announced three years ago set aside £9 billion for capacity increases. The DfT faces £683 million of cuts under Treasury plans.

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