Environmental Engineering Reference
In-Depth Information
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Year
GDP
Public investment
Net public resource
ALL public
Private investment + ALL public
Figure 12.1
Indexed comparison of GDP and transport expenditure: actual GDP 1991-2005; actual
expenditure 1991-2001; planned 2001-2011
• Major increases in public spending were planned for the first three years of the
Ten Year Plan period (2001/02-2003/04). However this consisted almost entirely
of investment spending, (remedying the cuts made in the mid-1990s) with no
further increases thereafter.
• By adding private investment and public expenditure together, overall spending
on transport by 2005/06 is roughly in line with the growth in GDP.
• Annual payments for the privately financed investments elements have the effect
of depressing the amount available for public resource spending generally in the
latter part of the period.
Analysing expenditure in this way puts into a rather different perspective the
claims of increased investment made for the Ten Year Plan at the time it was launched.
For public spending it did no more than restore the position pre-1994 (although this
in itself was very important). Overall spending was brought in line with growth in
GDP but this was achieved entirely by the introduction of private investment (largely
through privatisation of the rail network). Utilising this source does however mean
that, in principle, public spending can be increased disproportionately in other policy
sectors where the same opportunity for private investment does not exist.
Each of the three expenditure types was subdivided into the main blocks by
which funding is allocated: strategic roads, rail, local transport (excluding London)
and London. Figure 12.2 shows the total investment (public and private) for these
blocks.
As can be seen all the blocks benefit from a significant increase from a low point at
the end of the 1990s, but the rate of growth is markedly different.
• Strategic roads are only expected to regain about half the spending lost during the
1990s (i.e. to 75% of their former level).
• London is expected to receive about 12% additional investment over the ten-year
period compared with the previous decade.
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