Transport: Savings

Lord Berkeley Excerpts

Tuesday 15th June 2010 Lords Chamber

Asked By

[Lord Berkeley]

To ask Her Majesty’s Government how they intend to implement savings of £682 million in 2010-11 in the transport sector in the context of their intention to create a greener and more sustainable transport sector.

[Earl Attlee]

My Lords, I can reassure the House that this Government take their environmental obligations very seriously. The Department for Transport is focusing on improving efficiency while protecting priority areas, including green initiatives. The savings will include £112 million from direct departmental spend, £100 million from Network Rail, £309 million from local government grants, a proposed reduction of £108 million from the Transport for London grant and the deferral of £54 million from lower priority schemes.

[Lord Berkeley]

I am very grateful to the noble Earl for that breakdown of the first cut of the big cuts. I refer him to the coalition’s programme for government, which confirms what he said—that there is a joint ambition to create a low-carbon economy. Could he then tell the House why, in that list of cuts he quoted, there was nothing about a Highways Agency reduction in construction? Will we see road building continue while all the sustainable forms of transport are cut?

[Earl Attlee]

My Lords, I thank the noble Lord for his question. I can reassure him that the Highways Agency will take its fair share of reductions in the DfT’s direct spend, including £37 million from the deferral of planned spend in 2010-11 on a small number of Highways Agency schemes. Together, these savings represent a reduction which is in proportion to that being made to Network Rail and local government funding.