Spending Review and Autumn Statement

Debate between Lord Stoddart of Swindon and Lord O'Neill of Gatley

Wednesday 25th November 2015 Lords Chamber

[Lord O'Neill of Gatley]

My Lords, at the risk of repeating aspects of what I said, I think I made it clear that the arguments advanced had legitimacy and were, as with any other arguments, capable of influencing the Chancellor—which, I might add, has been observable on a number of other economic policies. What was not legitimate was the fatal Motion carried in this House.

[Lord Stoddart of Swindon (Ind Lab)]

My Lords, I will ask a quick question on transport, which I understand is to take a cut of 30%. Which services will that adversely affect? Will there be cuts in assistance to the railways and to London transport, in which case fares will increase, or are there other means of finding that 30% cut?

[Lord O'Neill of Gatley]

My Lords, as I think was touched on in part of the question asked by the noble Baroness, Lady Kramer, the cuts are in the Department for Transport’s operational budget. There is a significant increase in capital spending. With respect to a number of our investment challenges, I would also highlight that some of the additional £12 billion capital investment is specifically for transport. Tangential to that, I also highlight the more specific commitment to HS2, as well as—very importantly for the northern powerhouse project—a significant allocation of money for the rollout of Transport for the North, particularly the state-of-the-art ticketing proposals that we hope will come to the fore.