PARLIAMENTARY WRITTEN QUESTION
Transport: Greater London (4 January 2019)

It is notoriously hard to attribute the benefit and location of public investment in transport infrastructure accurately. Figures on public sector expenditure at a regional level are part of the Government’s Country and Regional Analysis (CRA) statistics. These provide statistical allocations of public spending according to where the benefits of that spend are accrued, although the complexity of transport networks means that it is not always possible or appropriate to allocate transport spending on a ‘who benefits’ basis. Where this is the case, expenditure has been apportioned based on actual regional spend rather than where the benefit lies.

In addition, the investment profile of major transport spending can be extremely lumpy, further distorting the figures. Finally, the benefits from spend on transport interventions will often accrue to people far beyond the residents of the immediate local area or region. This is particularly the case for spending on railways, which connect cities and regions across the country and deliver broader benefits beyond the region concerned.

In the case of London, the city receives a substantial number of daily commuters and visitors, both domestically and internationally, who use and benefit from its public transport networks. Much of the investment made in London benefits people across the U.K.

With these provisions in mind, the latest CRA statistics, published by HM Treasury on 20th November 2018, show that 26% of the Department for Transport’s total expenditure in 2017/18 was in the London region.

The Department for Transport makes investment decisions based on a rigorous and fair appraisal process designed to ensure spending goes to the projects and programmes where it delivers greatest value for both taxpayers and passengers.