Chancellor Jeremy Hunt warns that ‘decisions of eye-watering difficulty’ lie ahead with all government departments required to identify spending cuts

 
Transport secretary Anne-Marie Trevelyan said she would fight to retain the £2 fare cap across England from January to March

 
The public transport sector is braced for deep spending cuts after all government departments were asked to find efficiencies within their budget in the wake of last month’s calamitous mini-budget.

The new chancellor, Jeremy Hunt, has admitted “decisions of eye-watering difficulty” lie ahead. The government is expected to give some indication of where savings will be made in its ‘Halloween budget’ on October 31.

Appearing before the Transport Select Committee this week, transport secretary Anne-Marie Trevelyan did not reveal what current spending commitments her department would be willing to sacrifice. However, she said she would fight to retain the £2 fare cap across England from January to March that was announced by her predecessor Grant Shapps last month. At a cost of £60m it would not have offered the magnitude of savings that Trevelyan will be pressed to find.

I’m beginning to wonder whether the already announced £1.2bn funding for Bus Service improvement Plans (none yet handed over to local authorities) is now at risk under the government’s latest round of ‘efficiency savings’

Asked whether there would be a second round of funding for Bus Service Improvement Plans, Trevelyan said she would respond as soon as possible. MPs must have assumed that the first round of BSIP funding was safe, but transport commentator Roger French tweeted this week: “I’m beginning to wonder whether the already announced £1.2bn funding for Bus Service improvement Plans (none yet handed over to local authorities) is now at risk under the government’s latest round of ‘efficiency savings’.”

Fears have also been expressed over Northern Powerhouse Rail and HS2, although Hunt spoke of the need to maintain capital investment when he addressed parliament this week.

 
This story appears in the latest issue of Passenger Transport.

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