The waiting game


With just a few weeks to go until the spending review is revealed, Paul Clifton considers what is likely to go


O


nly a few weeks to go. Some of the uncertainty in the rail industry will soon be swept away. The government’s


spending review, due


on 20 October, will answer many of the questions that have been stacking up since the general election in May. The transport secretary, Philip Hammond, has given away


little. In fact, confirming that Crossrail will continue is almost the only commitment he has so far given about the railway. Spending on transport has risen sharply


in recent years. That will change. In fact, the cuts have already started: the government is reducing transport grants to local councils, Transport for London and Network Rail. It has effectively frozen orders for new trains and new work on local roads and


public transport projects. Anything that was not already tied down in a contract has been put on hold.


Will fares rise? Hammond has refused to rule out pushing fares up beyond the established RPI+1 per cent formula. If the new government wishes to continue Labour’s aim of switching more of the burden from taxpayer to fare payer, it seems likely. But that would not sit comfortably with Liberal Democrats, whose election manifesto promised the opposite. Whatever decision is made on regulated fares,


PAGE 22 OCTOBER 2010


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