The Scottish Government

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TRANSPORT

To promote economic growth, social inclusion and health and protection of our environment through a safe, integrated, effective and efficient transport system.

OBJECTIVES AND TARGETS

Spending Plans 2002-08

Table 8.01 Categories of spending (Level 2)

Notes:
1. To be accounted for by the Transport Agency.
2. Responsibility to be shared between the core Department and the Transport Agency (see Table 8.08).

Table 8.02 Categories of spending (Level 2 real terms)at 2005-06 prices

What the budget does

We seek to create excellent transport services and excellent transport infrastructure which contribute towards a growing economy, the promotion of equality and the closing of the opportunity gap. We also aim to promote sustainable modes of transport.

In this Budget we will continue to increase our investment in transport infrastructure through an ambitious programme of rail infrastructure enhancement, and through undertaking targeted improvements to the trunk road network. We are also investing in improved public transport (buses, rail, ferries, trams and park and ride). The vast majority of our spending - 70% over the period of our investment plan - will be on public forms of travel. Furthermore, we will invest in better facilities for freight; in greater use of our sea routes and canals; and in new direct air routes from and to Scotland.

We will transform transport delivery in Scotland by setting up Regional Transport Partnerships and a national transport agency. They will be charged with making our aspirations for transport - and the aspirations of the people and businesses of Scotland - a reality.

Statement of priorities

In 2006-07 we will focus our resources on:

• investing in our key rail and road infrastructure projects;

• maintaining and improving Scotland's existing rail and trunk road networks;

• investing in public transport service improvements by, for example, promoting integrated ticketing; delivering a better deal for rail passengers in the new franchise; introducing a new bus route development fund;

• extending the benefits of concessionary travel by introducing new national schemes for older and disabled people and for younger people; and

• delivering our Partnership agreement commitment to create a new transport agency for Scotland and regional transport partnerships.

New resources and transfers

Our spending plans include the following changes made since the publication of Draft Budget 2005-06:

Rail services in Scotland
Increase in budget to reflect the transfer from the Department for Transport of responsibility for funding Network Rail in Scotland. The increase is not included in this document. The precise figures will be determined in autumn 2005 and included in the forthcoming Budget Bill.
Increase of £17m following the transfer of budget for rail enhancements from the Department for Transport. This is also not included in this document, but will be included in the forthcoming Budget Bill.

Other Public Transport
Increase of £7.5/7.5m in Agency Administration Costs arising from the transfer of functions from the Strategic Rail Authority.

The 2006-07 budget indicates which of the Level 3 programmes will be the responsibility of the new Transport Agency.

Growing the Economy

The Transport Portfolio significantly contributes to growing the Scottish economy by putting in place new transport links which will get goods to market and people to work.

The most important challenge for encouraging economic growth in Scotland is to improve our transport infrastructure. This budget allows us to take significant steps in the delivery of the transport 10 year plan.

This budget also allows us to invest in our public transport, in our road networks and in our air and sea connections. There are real improvements that can be made to encourage and sustain economic growth, to reduce the time to market for our businesses, to improve the accessibility of our communities, to integrate bus, rail and ferry timetables, and to deliver transport services that are reliable, safe and effective.

Key schemes included in our investment strategy are:

• rail links to Edinburgh and Glasgow airports;

• improvements to Edinburgh's Waverley Station;

• expanding the rail network (Airdrie-Bathgate, Larkhall-Milngavie, Stirling-Alloa-Kincardine, Borders Rail Link);

• introduction of Edinburgh tram lines;

• completing the central Scotland motorway network (M74 Extension, A80/M80, A8/M8); and

• Aberdeen Western Peripheral Route.

Closing the Opportunity Gap/Promoting Equality

Closing the Opportunity Gap

We will work towards closing the opportunity gap by linking up communities and linking people to jobs and services. We are aiming to ensure that those for whom public transport is the main or sole mode of transport are not excluded from jobs or services.

We will continue to provide support for services which enable rural, island and remote communities to thrive, and to support measures which will ensure that vital public transport services are available across rural Scotland.

The introduction of the new national concessionary schemes for older and disabled people and for younger people will contribute towards the Scottish Executive's real commitment to improving quality of life and better access to all members of Scottish society.

Our support for Demand-Response Transport initiatives enables people with impaired mobility to get out and about, and helps to reduce their social and rural exclusion.

We will close the opportunity gap by:

• kick-starting better local bus services through the Bus Route Development Fund;

• linking our remote and rural island communities by supporting Lifeline Services;

• piloting both rural and urban Demand-Response Transport schemes; and

• improving rural transport services through the Rural Transport Fund.

Promoting Equality

We will promote equality by:

• extending our Concessionary Fares Scheme to include national free off-peak bus travel for older people and people with disabilities;

• working closely with the Mobility and Access Committee for Scotland ( MACS) and other organisations to take account of the travel needs of disabled people;

• encouraging policy makers to consider the needs of women when developing their transport policies; and

• supporting the Scottish Mobility Centre to help disabled motorists return to driving and enjoy freedom and independence.

Sustainable Development

We are making unprecedented levels of investment in public transport, with a determined focus on sustainable transport. We have a major programme of rail investment, coupled with targeted trunk road improvements which will reduce congestion and travel time, and will make vehicle operation more efficient.

We are investing in innovative measures, including behaviour change initiatives, to promote modal shift away from the car where it is possible, and therefore reducing the impact of road traffic on the environment.

We are supporting work currently being undertaken at UK and international level on the development and take up of cleaner and low-carbon road transport technologies and fuels.

The forthcoming development of the National Transport Strategy will bring enhanced focus on the transport key objectives and in particular environment.

We will enhance sustainable development by:

• funding behavioural change initiatives;

• directing 70% of our transport spending towards public transport over our 10-year investment period;

• applying the Scottish Transport Appraisal Guidance ( STAG) process to transport projects, where one of the key criteria is the impact on the environment;

• removing some 26 million lorry miles from Scotland's roads through the Freight Facilities Grant; and

• supporting a number of cycling and walking projects, including funding for Cycling Scotland.

RAIL SERVICES IN SCOTLAND

Spending plans 2002-08

Table 8.03 More detailed categories of spending (Level 3)

Note:
1. Previously under 'Other Public Transport' as 'Rail 'Review'.
2. Current spending plans will increase resulting from Rail Review and the additional powers that will transfer to Scottish Ministers; the proposed transfer from the Department for Transport is not reflected in this publication.

What the budget does

The budget is required to fund the operator of the ScotRail franchise for the provision of rail services across Scotland.

The Transport Agency will be responsible for the Rail Services budget.

FERRY SERVICES IN SCOTLAND

Spending Plans 2002-08

Table 8.04 More detailed categories of spending (Level 3)

Notes:
1. The figure for Clyde and Hebrides Ferry Services is notional pending the outcome of the tendering exercise.
2. The figure for Northern Isles Ferry Services is notional pending the outcome of the tendering exercise
3 . Capital grant of £2/£2m for 2006-07 and 2007-08 has been included and Other Grant's to LA's Level 2 adjusted.

What the budget does

The budget covers the subsidy paid for the lifeline ferry services on the Clyde and to the Hebridean and Northern Isles, subsidy for a new service between Campbeltown in Kintyre and Ballycastle in Northern Ireland (which will be introduced in 2006, subject to a successful outcome to an ongoing tendering exercise) and support for investment in new or improved harbour facilities serving lifeline routes. Over the 2006-08 period, the Clyde and Hebrides services will be enhanced through the commissioning of two new vessels designed for the Wemyss Bay to Rothesay and Largs to Cumbrae routes. Supported piers and harbours work over this period will include projects at Largs, Canna, Cumbrae, Lismore and Brodick, all expected to be underway in 2006-07, with a further project at Kennacraig beginning in 2007-08. Additional projects may be added to this list.

BUS SERVICES IN SCOTLAND

Spending Plans 2002-08

Table 8.05 More detailed categories of spending (Level 3)

What the budget does

The Bus Service Operator Grant budget provides support to the bus industry across Scotland by helping to keep fares down for bus users. It also reduces the cost to local authorities of supporting non-commercial socially necessary services. Resources which support the work of the Bus User Complaints Tribunal are also provided. The Bus Route Development Grant scheme provides short term funding to transport authorities and operators throughout Scotland to improve the quality and frequency of local bus services with potential for growth.

CONCESSIONARY FARES

Spending Plans 2002-08

Table 8.06 More detailed categories of spending (Level 3)

Note:
1. Transport portfolio spending plans for Concessionary Fares do not include funds allocated to local authorities from GAE.

What the budget does

The budget provides support for the development and delivery of concessionary travel schemes for older and disabled people (from April 2006) and for young people. Funding will also provide for bus infrastructure systems to recognise Smartcards. Access to national concessionary travel will be through Smartcards issued as part of the Scottish Citizen's Account Modernising Government project. This will also provide a significant improvement in the validation of concessionary claims from bus operators.

The Transport Agency will be responsible for the new National Concessionary Fares Scheme.

AIR SERVICES IN SCOTLAND

Spending Plans 2002-08

Table 8.07 More detailed categories of spending (Level 3)

What the budget does

The budget provides support for Highlands and Islands Airports Limited ( HIAL) which operates ten airports in the Highlands and Islands (Barra, Benbecula, Campbeltown, Inverness, Islay, Kirkwall, Stornoway, Sumburgh, Tiree and Wick) in a safe, efficient and environmentally responsible manner in support of the economic and social development of remote and island communities. Airport charges will be set at a level which recognises the importance of lifeline air services to remote and island communities. Resources will also be available for the further development of the Air Route Development Fund throughout Scotland, including the Highlands and Islands, with the aim of supporting more international business travel and in-bound tourism to Scotland.

OTHER PUBLIC TRANSPORT

Spending Plans 2002-08

Table 8.08 More detailed categories of spending (Level 3)

Note:
1. Represents expenditure to be accounted for by the Transport Agency.
2. Previous expenditure for Major Public Transport Projects was included in Integrated Transport Fund ( ITF) budget line.
3. Amalgamation of previous 'Traveline' and 'Transport Direct' budget lines.
4. Modal Shift and Strategy expenditure was previously reported within Integrated Transport Fund ( ITF) and Motorways and Trunk Roads Other Current Expenditure budget lines.

What the budget does

The Integrated Transport Fund will continue to provide resources to deliver public transport priorities, enhance transport integration and deliver public transport projects in line with Partnership Agreement commitments.

Funding is provided for Major Public Transport Projects, to proceed with the delivery of major rail public transport projects, in line with the Partnership Agreement commitments. This budget allows us to take significant steps in the delivery of the Transport 10 year plan which was outlined in the Scottish Executive Infrastructure Investment Plan.

The Mobility Budget supports our commitment to improve mobility of disabled people. It provides a grant to the Mobility and Access Committee for Scotland ( MACS) for their running costs and administration and also funds a grant towards the running of the Scottish Driving Assessment Service. This is a Non-Departmental Public Body set up to advise Scottish Ministers on transport matters concerning disabled people.

The Rural Transport Budget will enable us to improve access for our rural communities by expanding the Rural Community Transport initiative and developing Demand Responsive Transport Services in rural areas. We will continue to support Local Authorities to develop rural public passenger services through the Rural Public Passenger Transport Grant and respond to requirements to maintain a network of fuel supply in rural areas through the Rural Petrol Stations Grant Scheme.

The Transport Information budget pays for the Executive's contribution to Transport Direct, which is the national travel information portal, and for supporting the Traveline journey planner contract.

The Road Haulage Modernisation Fund budget will help to tackle the driver shortage in the freight industry and encourage fuel efficient driving by road hauliers.

Freight grants will be awarded to encourage the transport of freight by rail and water rather than by road.

The increased grant to British Waterways Scotland will enable further significant developments to take place as part of the renaissance of Scotland's canals - particularly the Lowland Canals.

OTHER GRANTS TO LOCAL AUTHORITIES AND REGIONAL TRANSPORT PARTNERSHIPS

Spending Plans 2002-08

Table 8.09 More detailed categories of spending (Level 3)

Notes:
1. Capital Grant funding for Piers and Harbours has been included within Ferry Services in Scotland Level 2 spending plans for 2006-07 and 2007-08.
2. Funding support for SPTE for financial years 2006-07 and 2007-08 has been included within Regional Transport Partnership capital funding in anticipation of the proposed Regional Partnerships statutory bodies being granted parliamentary approval by 2005.

What the budget does

This budget supports the introduction of the new statutory Regional Transport Partnerships ( RTPs) that will, subject to Parliamentary approval, be established in 2006-07, by providing capital resource for the first two years' operation. This additional funding will provide support for strategic regional and local road and public transport projects that will be identified and managed by the new statutory Regional Transport Partnerships.

Funding is provided to the Forth Estuary Transport Authority ( FETA) and the Tay Road Bridge Joint Board to support their capital programme for necessary bridge works.

Capital funding is provided to Strathclyde Passenger Transport for capital projects and to Regional Transport Partnerships to fund the delivery of their regional transport strategies.

MOTORWAYS AND TRUNK ROADS

Spending Plans 2002-08

Table 8.10 More detailed categories of spending (Level 3)

Note:
1. Other Current Expenditure adjusted for £1.5m to Modal Shift and £0.95m to Tay Bridge.

What the budget does

The budget will:

• allow further progress to be made on the maintenance and enhancement of the trunk road infrastructure and the service provided to customers. The major influences on planned spending are the need to maintain the network in good condition and deliver trunk road improvements to benefit safety and traffic flows;

• secure value for money in the delivery of routine, cyclical and winter maintenance to maintain the safety, environment and amenity of the trunk road network;

• take forward to completion, in addition to other minor works, the annual programme of road improvement works; and

• improve the operation of the trunk road network and the provision of information for road travellers.

The Department has contractual obligations for two PPP contracts with 30 km of new motorway constructed on the A74(M) and 15 km on the M77 south of Glasgow. PPP payments support the continuing service delivery of 105 km of motorway on these roads.

Roads improvements cover resource expenditure on preparation for capital construction projects and for the delivery of smaller local improvements to the network which do not involve a change in the type of road (i.e. between 2-lane and 3-lane carriageways etc).

Capital construction supports the purchase of land and delivery of new road construction. In 2006-07 this will be targeted at building a new bridge over the River Forth at Kincardine and starting the Northern Bypass of Dalkeith, two projects emanating from the decisions of the Strategic Road Review in 1999. Work is also expected on a number of smaller projects forming part of the Route Action Plans developed to improve long distance single carriageway roads. In 2007-08 expenditure will also be targeted at the completion of the motorway network.

Roads depreciation and cost of capital are accountancy charges. The first records the reduction in the asset value of the network and other capital assets such as bridges, calculated as net reduction in their value due to depreciation after any increase in life secured through structural repairs. The cost of capital represents a charge of 3.5% of the depreciated value of the network, etc. These charges do not represent purchases or investment but are sums deducted centrally from the budget.

The Transport Agency will be responsible for the Motorways and Trunk Roads budget.

OTHER TRANSPORT RELATED LOCAL AUTHORITY FUNDING

Spending Plans 2002-08

Table 8.11 More detailed categories of spending (Level 3)

What the budget does

The Transport Grant Aided Expenditure ( GAE) figures relate to the level of local authority net revenue expenditure on these services that the Executive is supporting through grant. GAEs are not budgets but more a basis for the distribution of grant through Aggregate External Finance ( AEF). Local authorities are, however, free to allocate their available resources to each service, including Transport, on the basis of local need. The figures in this table are included in the GAE summary table (Table 10.04) contained within the Finance and Public Service Reform chapter of this document.

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