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CHAPTER 11 FINANCE
1.
Introduction
1.1 This chapter provides information on finance, such
as expenditure on transport within Scottish Ministers'
responsibility and on transport controlled by Local
Authorities. It shows capital and current expenditure on
motorways and trunk roads, Local Authority revenue and
capital income and expenditure on roads and transport,
government grants for the construction and improvement of
harbour facilities, petrol and diesel prices and duties,
and average weekly household expenditure on transport.
1.2 It should be noted that almost all the figures in
this chapter are expressed in what are referred to as
"current", "out-turn" or "cash" prices: no table gives
"constant price" figures.
2.
Main Points
2.1 The provisional estimated total of capital and
current expenditure on motorways and trunk roads in 2004-05
was estimated at £328 million, an increase of 10% over
2003-04 (which had the peak expenditure in recent years at
£299 million - but the total is forecast to rise to £336
million in 2005-06). Total expenditure on transport within
Scottish Ministers' responsibility in 2003-04 was estimated
at £960 million, £236 million (33%) more than in the
previous year.
(
Table 11.1)
2.2 In 2003-04, expenditure on transport controlled by
local authorities was £487 million (excluding loan
charges). In cash terms, this was 7% more than in 2002-03.
Road maintenance (£249 million in 2003-04) accounted for
more than half the expenditure in every year (apart from
1996-97). The other main categories of expenditure in
2003-04 were:
- concessionary fares (£91 million, a 40% increase
from the previous year, following the introduction of a
national minimum standard of free off-peak local bus
travel for elderly and disabled people in Scotland with
effect from 30 September 2002, and the extension of the
arrangements to men aged 60-64 with effect from 1 April
2003);
- contributions to passenger transport (£72
million);
- road lighting (£50 million);
- network and traffic management (£28 million).
In 2003-04, the net income from parking charges was £24
million, over three times the figure for 1995-96.
(
Table 11.1)
2.3 Expenditure on the management and maintenance of
motorways and trunk roads totalled £111.9 million in
2003-04: £56.5 million on structural repairs and £55.4
million on maintenance and network management. (These
figures do not include spending on construction).
(
Table 11.2)
2.4 The Local Authorities with the highest net revenue
expenditure on roads and transport (excluding loan charges)
in 2003-04 were: Glasgow City (£39.6 million), South
Lanarkshire (£34.4 million), Fife (£34.0 million) North
Lanarkshire, (£28.8 million) and Aberdeenshire (£26.8
million).
(
Table 11.3) The table also
shows local authorities' figures for each of a number of
types of expenditure:
- Road maintenance. Aberdeenshire and
Glasgow City were the local authorities with the
highest expenditure on road maintenance (£19.9 million
and £19.5 million respectively). Aberdeenshire spent
£6.1 million on winter maintenance and £13.7 million on
other road maintenance. Glasgow spent £1.9 million on
winter maintenance plus £17.6 million on other road
maintenance work.
- Concessionary Fares. Glasgow had the
highest expenditure on concessionary fares (£11.9
million), followed by Fife (£9.1 million) and Edinburgh
(£8.7 million).
- Contributions to Public Transport.
Shetland Islands (£9.8 million) made the largest
contributions to passenger transport. Orkney spent £5.6
million and North Lanarkshire, South Lanarkshire and
Fife each spent around £4.5 million to £4.8
million.
- Road Lighting. Glasgow spent most on
road lighting (£8.7 million), followed by South
Lanarkshire (£3.7 million) and North Lanarkshire (£3.6
million).
- Parking. Edinburgh raised the largest
amount from parking (£11.3 million, net) and Glasgow
raised £8.6 million.
2.5 Gross capital account expenditure by councils and
boards on local authority roads and transport totalled
£222.3 million in 2003-04, an increase of 31% from the
previous year. Of this total £135.9 million was spent on
roads, £84.0 million on other transport and £2.4 million on
toll bridges. Of the roads expenditure, £21.4 million was
spent on roads projects costing under £2 million each,
£21.7 million on improvements and reconstruction of major
roads costing £2+ million each, £39.9 million on structural
maintenance of roads, and £23.7 million on road safety for
local roads.
(
Table 11.4)
2.6 The local authorities with the highest gross capital
account expenditure on roads and transport in 2003-04
were:
- City of Edinburgh (£31.9 million),
- Highland (13.9 million),
- Glasgow City (£13.2 million), and
- Argyll and Bute (£9.5 million).
Glasgow spent the most (£6.2 million) on 'major' road
projects costing £2+ million each and Scottish Borders
spent the most on smaller road projects (£4.9 million).
City of Edinburgh spent the most on roads special
objectives (£18.6 million). For other types of transport,
the highest spenders were Strathclyde
PTA (£33.6 million).
(
Table 11.5)
2.7 In 2003-04, local government roads and transport
trading services revenue income totalled £41.5 million:
£14.3 million from road bridges (Forth and Tay only), £12.1
million from ferries, £0.4 million from buses and £14.7
million from other local authority transport undertakings
(such as airports, harbours and piers). The main sources of
income were £25.6 million from sales, rents, fees and
charges and a £12.2 million contribution towards
deficiencies from general funds.
(
Table 11.6)
2.8 Local government roads and transport trading
services capital account expenditure totalled £23.4 million
in 2003-04.
(
Table 11.7)
2.9 In 2003-04, government grants for the construction
and improvement of harbour facilities totalled £8.5
million. The main recipients were Orkney Islands Council
(£2.6 million), Scrabster harbour authority (£3.4 million),
Highland Council (£1.8 million), and Caledonian MacBrayne
(£688,000).
(
Table 11.8)
2.10 The average prices of unleaded petrol and diesel in
Great Britain as a whole rose between June 2003 and June
2004, by 7.3 and 6.2 pence per litre respectively. Tax
(duty plus
VAT) represented about 73% of the price
of unleaded petrol and 72% of the price of diesel in Great
Britain in June 2004, compared with 70% and 69%
respectively in June 1994, and with 76% for unleaded petrol
and 75% for diesel in June 2003.
(
Table 11.9)
2.11 The
UK Retail Prices Index (
RPI) rose by 30% from a value of 144.1
(based on 13 January 1987=100) for 1994 to a value of 186.7
for 2004. Most of the Transport components of the
RPI increased more rapidly than this,
and therefore rose in real terms. In "cash" terms, the
costs of petrol and oil rose by 57 %, the cost of
maintenance of motor vehicles increased by 57%, and there
was a 43% rise in the cost of vehicle tax and insurance.
However, the cost of purchasing a motor vehicle fell by 12%
in "cash" terms over the last ten years. As a result, the
motoring expenditure index rose by 22%, slightly less than
the 30% increase in the
RPI, so the overall cost of motoring
decreased slightly in real terms between 1994 and 2004.
Over the same period, the overall index of fares and other
travel costs rose by 40% in "cash" terms. Rail fares rose
by 36% and bus and coach fares by 46%, so both increased in
real terms. (
Table 11.10)
2.12 The total average weekly household expenditure in
Scotland on transport and vehicles in 2003-04 was £59.40,
an increase of 2% over the previous year and 38% on
1994-95. As a percentage of total household expenditure
this was 15.6%, fractionally more than the previous year
and only slightly higher than 1994-95 where it was
15.0%.
3.
Notes and Definitions
3.1 Following local government reorganisation on 1 April
1996, the management and maintenance of motorways and other
trunk roads was sub-divided into 8 operating units. These
applied for the years from 1996-97 to 2000-01 inclusive.
New arrangements were introduced with effect from 2001-02.
From 2001-02 there are now 4 Operating Companies. Details
of the areas covered by each of these companies can be
found in the Annex.
3.2
Local authority trading services: Those services
of a commercial nature which are, or could be,
substantially financed by charges made to recipients of the
services.
3.3 In a few cases, negative figures are shown in the
net expenditure tables. This is due to income/receipts
exceeding the expenditure in a particular category.
3.4
Retail Prices Index: Rail fares are 5 parts per
1,000 (or 0.5%) of the Retail Prices Index. Bus and coach
fares are also 5 parts per 1,000 (or 0.5%). 'Motoring
costs' accounts for 14.6% of the Retail Prices Index. This
breaks down into:
6.2% Purchase of vehicles
2.2% Maintenance of motor vehicles
3.8% Petrol and Oil
2.4% Tax and Insurance.
Car parking charges are included under 'Maintenance of
motor vehicles'.
3.5
Resource Accounting and Budgeting (also known as
Accruals): Under resource accounting income is shown
when it is earned, and costs are shown when they are
incurred, the timing of the cash movement is irrelevant.
The costs of a capital asset are spread ('depreciated')
evenly over its useful life. A capital charge is also made
against the value of the asset.
3.6
Cash Accounting: Income is shown when money is
received, and costs are shown when payment is made. All
receipts and payments made in a financial year are included
in the cash accounts for that period. The whole cost of a
capital asset is recorded when it is bought.
4.
Sources
4.1 The statistics in this chapter come from the
following sources:
Table 11.1 (upper half -
"Scottish Ministers")* - the publication "Building a Better
Scotland: Spending Proposals 2003-2006: What the money
buys" which details current public expenditure and plans to
2005-06 (* except 'Local Transport - Capital' which is
obtained from returns made by Councils and boards to The
Scottish Executive)
Tables 11.1 (lower), 11.3 to
11.7 - from returns by Councils and boards to The Scottish
Executive
Tables 11.2 - The Scottish
Executive Road Network Management and Maintenance
Division
Table 11.8 - The Scottish
Executive Transport Division 4
Tables 11.9 - The Department of
Trade and Industry
Tables 11.10 and
11.11 - The Office for National
Statistics
5.
Further Information
5.1 For further information on
Table 11.1(upper) - Motorways
and Trunk roads and central government subsidies to
transport industries, contact Alistair Lindsay of The
Scottish Executive Finance Transport Division (tel: 0131
244 7485).
5.1 For further information on
Tables 11.1(lower) (Local
Transport - Capital), 11.1(b) and 11.3 to 11.7 contact Mrs
Margaret Sellar of The Scottish Executive Local Government
Finance Statistics branch (tel: 0131 244 7035) or e-mail
lgfstats@scotland.gsi.gov.uk
.
5.2 For further information on
Table 11.2 contact Mr Alexander
Ramage of The Scottish Executive Road Trunk Roads Network
Management Division (tel: 0131 244 7245)
5.3 For further information on
Table 11.8 contact Miss Sharon
Wood of The Scottish Executive Development Department,
Transport Division 4 (tel: 0131 244 1679).
5.4 For further information on
Table 11.9 contact Ms Deirdre
Taylor, Department of Trade and Industry (tel: 020 7215
2722).
5.5 For further information on
Table 11.10 contact the Office
of National Statistics - Consumer Prices and General
Inflation Division (tel: 020 7533 5845).
5.6 For further information on
Table 11.11 contact the Office
of National Statistics - Expenditure and Food Survey (tel
020 7533 5756).
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