SUMMARY OF REPORT CONTENTS

The Department for Transport is responsible for developing and implementing government transport policy, with the overall objective to oversee the delivery of a reliable, safe and secure transport system that responds efficiently to the needs of individuals and business whilst safeguarding the environment.  

The Future of Transport White Paper published in 2005 reviewed transport plans ahead to 2030, the 2004 Spending Review raised planned transport investment from £10.4 billion in 2004-05 to £12.8 billion by 2007-08.

The department comprises the following key groups:-

• Roads, Regional and Local Transport Group

• Rail Group

• Aviation, Logistics and Maritime Group

• Driver Vehicle and Operator Group

PFI currently plays a significant role in public sector capital investment and within the transport infrastructure sector, with PFI expenditure accounting for between 10 – 15% of total investment in public services.  Obviously the amounts involved vary from year to year and from department to department. 

For the past two years total public investment has been running at about £35 billion and it is projected to rise to over £40 billion over the next two years until the end of the 2004 Spending Review period.  In terms of public capital expenditure in the transport sector, £6.6 billion is being spent in 2005/6, which is set to rise significantly next year, before declining slightly the following year. 

Total public capital expenditure within the transport sector represents around 18% of the total public expenditure on capital goods in 2005/6, at around £6.6 billion.  In 2006/7, spending on transport is set to rise by around £800million, although in share terms, the planned £7.4 billion will represent a slightly lower overall share of public capital expenditure next year at 17%.

Between, 2004/5 and 2007/8, capital expenditure on transport will increase by around 12%, reflecting a real term increase of around 1% per annum.  This reflects the continued commitment by the current government to spending on transport solutions, supported more recently by the announcement of strategies such as providing additional lanes on the whole of the motorway network by using the hard shoulder which is due to be completed in 2011/12.  

Total public capital expenditure is set to rise by 36% between 2004/5 and 2007/8, reflecting a significant increase in spending across all government departments – particularly Education, which will see growth in excess of 40%.