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, capital and current expenditure on motorways and trunk roads, 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. Also, in this edition (as in the previous edition), the figures for local authorities’ net revenue expenditure exclude loan charges, whereas the equivalent tables in the 1998 and earlier editions included them.
1.3 Some changes have been made for this edition :
2. Main Points
2.1 The total of capital and current expenditure on motorways and trunk roads in 1999-2000 was estimated at £163 million, an increase of 5% over 1998-99, and 34% less than the peak expenditure in recent years of £248 million in 1994-95. Total expenditure on transport within what is now Scottish Ministers' responsibility in 1998-99 was estimated at £299 million, £1 million less than in the previous year, and 40% less than the peak expenditure in recent years of £495 million in 1993-94. (Table 11.1)
2.2 In 1998-99, expenditure on transport controlled by local authorities was £367 million (excluding loan charges). In cash terms, this was 0.3% more than in 1997-98. Road maintenance (£195 million in 1998-99) accounted for about half the expenditure in every year (apart from 1996-97). The other main categories of expenditure in 1998-99 were: contributions to passenger transport (£42 million); road lighting (£43 million); concessionary fares (£42 million) and administration (£45 million). In 1998-99, the net income from parking charges was £15 million. (Table 11.1)
2.3 Expenditure on the management and maintenance of motorways and trunk roads totalled £100 million in 1998-99: £42.5 million capital expenditure on structural repairs and £57.5 million current expenditure on maintenance and network management. (These figures do not include spending on construction). £18.8 million of the total was spent on roads in the area served by the Forth Premium Unit. (Table 11.2)
2.4 Glasgow City was the local authority with the highest net revenue expenditure on roads and transport in 1998-99: £36.8 million excluding loan charges. Highland spent £28.4 million, South Lanarkshire £21.7 million and Fife £21.1 million. Highland was the local authority with the highest expenditure on road maintenance (£20.6 million) and Glasgow the one that spent most on road lighting (£7.9 million). Edinburgh raised the largest amount from parking (£7.4 million, net), Glasgow had the highest expenditure on concessionary fares (£5.4 million), and Shetland made the largest contribution to passenger transport (£7.0 million). (Table 11.3)
2.5 Gross capital account expenditure by councils and boards on local authority roads and transport totalled £118.6 million in 1998-99 an increase of 6.7% over the previous year. Most of this (£100.8 million) was spent on roads, including £25.2 million on roads projects costing under £2 million each, £11.7 million on major new road projects costing £2+ million each, £18.9 million on structural maintenance of roads, and £14.7 million on road safety for local roads. A total of £15.1 million was spent on transport other than roads. The amounts spent on some categories vary greatly from year to year — for example, the £1.5 million expenditure in 1998-99 on bypasses is lower than in any of the previous five years, whereas the £5.4 million spent on bus priority measures was higher than in any of the previous five years. (Table 11.4)
2.6 The local authority with the highest gross capital account expenditure on roads and transport in 1998-99 was Glasgow City (£15.5 million), followed by Fife (£11.6 million) and City of Edinburgh (£9.5 million). Glasgow City spent the most on ‘major’ road projects and roads special projects (£4.5 million and £7.9 million respectively). Highland spent the most on ‘minor’ road projects (£3.3 million). For transport other than roads, the highest spenders were Strathclyde PTA (£5.6 million) and Edinburgh (£3.2 million). (Table 11.5)
2.7 In 1998-99, local government roads and transport trading services revenue expenditure totalled £36.6 million: £11.9 million on road bridges (Forth and Tay only), £8.9 million on ferries, £0.1 million on buses and £15.7 million on other local authority transport undertakings (such as airports, harbours and piers). The main sources of income were £27.4 million from rents, fees and charges and £8.9 million contribution towards deficiencies from general funds. (Table 11.6)
2.8 Local government roads and transport trading services capital account expenditure totalled £6 million in 1998-99. (Table 11.7)
2.9 In 1998-99, government grants for the construction and improvement of harbour facilities totalled £1.6 million. The recipients were Caledonian MacBrayne (£806,000), Orkney Islands Council (£517,000) and Stornoway Harbour Authority (£255,000). (Table 11.8)
2.10 Tax (duty plus VAT) represented about 83% of the price of unleaded petrol and 84% of the price of diesel in Great Britain in 1999, compared with 57% and 61% respectively in 1989. (Table 11.9)
2.11 Since 1989, the Retail Prices Index has risen by 44% from a value of 115.2 (based on 13 January 1987=100) for 1989 to a value of 165.4 for 1999. Most of the Transport components of the Retail Prices Index increased more rapidly than this. The costs of petrol and oil have risen by 93%, the cost of maintenance of motor vehicles increased by 74%, and there was an 85% rise in the cost of tax and insurance. Rail fares rose by 72% and bus and coach fares by 65%. However, the cost of purchasing a motor vehicle increased by only 16% over the ten years: more slowly than the overall Retail Prices Index. (Table 11.10)
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. Details of the areas covered by each of these units 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:
5.8% Purchase of vehicles
2.3% Maintenance of motor vehicles
4.3% Petrol and Oil
2.2% Tax and Insurance
(car parking charges are included under 'Maintenance of motor vehicles').
4. Sources
4.1 The statistics in this chapter come from the following sources:
Table 11.1(a)* - the publication "Serving Scotland’s Needs" which details current public expenditure and plans to 1999-2000
(* except ‘Local Transport — Capital’ which is obtained from returns made by Councils and boards to The Scottish Executive)
Tables 11.1(b), 11.3 to 11.7 - from returns by Councils and boards to The Scottish Executive
Tables 11.2 - The Scottish Executive Network Management and Maintenance Division
Table 11.8 - The Scottish Executive Transport Division 2
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 Tables 11.1(a) (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 7032)
5.2 For further information on Table 11.2 contact Mr Ian Rankin of The Scottish Executive Network Management and Maintenance Division (tel: 0131 244 7251)
5.3 For further information on Table 11.8 contact Mrs Katherine McNab of The Scottish Executive Network Development Department, Transport Division 2 (tel: 0131 244 0841).
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 and 11.11 contact the Office of National Statistics (tel: 020 7533 5874).