28 October 2010
Opening a debate on the Comprehensive Spending Review (CSR), Chief Secretary to the Treasury, Danny Alexander, assured MPs that in charting the course for the next four years, the Government had chosen the right priorities of growth, fairness and reform. He added that at the end of the spending review public spending would be higher in cash terms than it was at the moment.
In terms of growth as a priority, the Government would deliver additional jobs in the economy, increase capital spending, heavily invest in the transport sector, maintain resource spending on science, establish a green investment bank, introduce a Regional Growth Fund (RGF) and new Local Enterprise Partnerships (LEPs) he confirmed.
The Chancellor made clear that the CSR prioritises capital spending on transport projects that offer high economic returns, with the Department for Transport (DfT) to receive £30 billion in capital investment. Over £10 billion is to be invested over the Spending Review period on regional and local transport schemes. Network Rail is to receive £14 billion of funding to support rail maintenance and investment, while rail fare increases are to be set at the Retail Price Index (RPI) plus 3% from 2012.
The rail network between Manchester, Liverpool, Preston and Blackpool will be electrified and further investment will be made to the rail network around Cardiff and Newport. Funding is to be made available for Crossrail to go ahead and support the upgrade and maintenance of the London Underground network.
The Government is also proceeding with its plans to deliver a new high-speed rail network from London to Birmingham, and then to both Manchester and Leeds, and will bring forward legislation during this Parliament that will allow the project to proceed.
Key projects that support the Government’s climate change commitment are also protected under the Review.
Local Government resource grants will be cut by 28%, while the Government will simplify the number of grants, to give Local Authorities more control and greater flexibility in how they spend this money.
The Chancellor also announced that a National Infrastructure Plan is to be set out by the Government in the week starting 25 October 2010.
Over the course of the Spending Review period, the DfT will reduce resource spending by 21% in real terms, and capital spending by 11% in real terms. By making these decisions the Government hopes to invest in vital infrastructure and greener technology to boost economic recovery.
Overall resource savings by 2014-2015 will be achieved through a focus on efficiency, cutting waste, stopping lower value spend and improving governance and accountability.
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