Chapter 10 Finance
Chapter 10 Finance
1.1 This chapter provides information on finance, such as expenditure on transport within Scottish Ministers' responsibility and on transport controlled by Local Authorities. It shows capital and current expenditure on motorways and trunk roads, Local Authority revenue and capital income and expenditure on roads and transport, 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 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 (i.e. deflated) figures.
- Scottish Government (including Transport Scotland) spend £1,834 million on transport in 2012/13. Local Authorities spend a further £900 million a year.
- Personal spend on transport and travel accounts for 14% of household spending.
- In the first three quarters of the 2013 calendar year, petrol prices rose 5.5 pence and diesel prices rose by 2.9 pence.
2. Main Points
Motorways & Trunk Roads
2.1 The total of capital and current expenditure on motorways and trunk roads in 2012-13 was estimated at £542 million, an increase of 28 per cent over 2011-12, a big part of which is expenditure on the Forth Replacement Crossing. Total expenditure on transport within Scottish Ministers' responsibility in 2012-13 was budgeted at £1,834 million, £182 million (11%) more than in the previous year. (Table 10.1)
2.2 Expenditure on the management and maintenance of the trunk road network totalled £115.2m in 2011-12. The expenditure is split £18m on capitalised maintenance and £97.2m on routine and winter maintenance, network management and network strengthening. (These figures do not include spending on new construction). (Table 10.2)
2.3 In 2011-12, net revenue expenditure on transport controlled by local authorities was £477 million. In cash terms, this was 5 per cent less than in 2010-11. Road maintenance (£256 million in 2011-12) accounted for 54% of the expenditure. The other main categories of expenditure in 2011-12 were:
- contributions to passenger transport (excluding concessionary fares) - £115 million;
- road lighting - £66 million;
- network and traffic management (excluding school crossing patrols) - £40 million
In 2011-12, the net income from parking charges was almost £25 million, just under £1 million more than 2010-11. (Table 10.1)
2.4 The Local Authorities with the highest net revenue expenditure on roads and transport (excluding loan charges) in 2011-12 were: South Lanarkshire, (£36.4 million), Fife (£36.0 million), Highland (£31.9 million) and Glasgow City (£30.0 million). (Table 10.3) The table also shows local authorities' figures for other types of expenditure in 2011/12:
- Road maintenance/Winter maintenance South Lanarkshire had the highest expenditure on road maintenance (£19.7 million), followed by Highland (£15.7 million). Highland and Aberdeenshire spent the most on winter maintenance (£4.8 million and £4.6 million respectively)
- Contributions to Public Transport in terms of the total net revenue expenditure on 'local authority' and 'non LA' public transport, Shetland Islands (£17.0 million) made the largest contributions to passenger transport. Orkney spent £6.7 million.
- Road Lighting Glasgow spent most on road lighting (£9.9 million), followed by South Lanarkshire (£4.9 million).
- Parking Edinburgh raised the largest amount from parking (£14.0 million, net) and Glasgow raised £6.8 million.
Gross Capital Expenditure
2.5 Gross capital account expenditure by councils and boards on local authority roads and transport totalled £503.7 million in 2012-13, an increase of 3.8 per cent on the previous year. Of this total £237.4 million was spent on roads and £179.7 million on other transport. Spending in Edinburgh which will include the tram project forms a large part of this project. (Table 10.4)
2.6 The local authorities with the highest gross capital account expenditure on roads and transport in 2012-13 were: City of Edinburgh (£161.3 million) and
Glasgow City (£27.7 million). Glasgow City spent the most on roads (£17.8 million) followed by Fife (£16.9 million). (Table 10.5)
2.7 The National Concessionary Travel (NCT) bus scheme was introduced in April 2006 and administered by Transport Scotland for Scotland as a whole. Previously local authorities administered their own schemes, therefore local expenditure on concessionary travel (and therefore overall totals of spend) shown in Table 10.3 will be greatly reduced from previous years, now only covering rail, subway, ferry and some taxi schemes. Further statistics on concessionary travel can be found in table 11.29.
2.8 Between 2011 and 2012 the average price of unleaded petrol increased by 2.1 pence, and diesel increased by 3.1 pence per litre in Great Britain. In 2013, petrol prices rose 5.5 pence in the first three quarters of the calendar year and diesel prices rose by 2.9 pence. Tax (duty plus VAT) represented 59% of the price for unleaded petrol and 58% of the price for diesel in Great Britain in 2012, compared with 77% for unleaded petrol and 76% for diesel in 2002. (Table 10.6)
2.9 The UK Retail Prices Index (RPI) rose by 38% between 2002 and 2012. Most of the Transport components of the RPI increased more rapidly than this, and therefore rose in real terms. In cash terms, the costs of the maintenance of motor vehicles increased by 64%, petrol and oil by 86% and there was a 95% rise in the cost of vehicle tax and insurance. However, the cost of purchasing a motor vehicle fell by 20% in cash terms over the last ten years. As a result, motoring expenditure index rose by 34%, less than the 38% increase in the RPI and therefore a real term fall between 2002 and 2012. Over the same period, fares and other travel costs rose by 65% in cash terms - rail fares by 60% and bus and coach fares by 66%, increases of 16% and 20% above general inflation. (Table 10.7)
2.10 Average weekly household expenditure in Scotland on transport and vehicles in 2010-12 was £61.80, representing 14.1% of total household expenditure. On average, £18.20 was spent on the purchase of vehicles, £30.00 on the operation of personal transport (including £21.60 on petrol, diesel and other motor oils) and £13.60 on transport services (such as bus and train fares). (Table 10.8b)
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. These applied for the years from 1996-97 to 2000-01 inclusive. New arrangements were introduced with effect from 2001-02 which resulted in 4 Operating Companies maintaining the trunk road network. The introduction of 3rd Generation Contracts for Trunk Road Maintenance in April 2006 and 2007 means there are now 3 Operating Companies. Details of the areas covered by each of these companies 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:
6.2% Purchase of vehicles (CHBK)
2.2% Maintenance of motor vehicles (DOCT)
3.8% Petrol and Oil (DOCU)
2.4% Tax and Insurance.(DOCV)
Car parking charges are included under 'Maintenance of motor vehicles'.
3.5 Resource Accounting and Budgeting (also known as Accruals): Under resource accounting income is shown when it is earned, and costs are shown when they are incurred, the timing of the cash movement is irrelevant. The costs of a capital asset are spread ('depreciated') evenly over its useful life. A capital charge was also made against the value of capital assets until 2009-10.
3.6 Cash Accounting: Income is shown when money is received, and costs are shown when payment is made. All receipts and payments made in a financial year are included in the cash accounts for that period. The whole cost of a capital asset is recorded when it is bought.
4. Sources & Further Information
4.1 The statistics in this chapter come from the following sources:
- Table 10.1(upper half) - Building a Better Scotland: Spending Proposals 2003-2006 and Scotland's Budget Documents 2006-07: Budget (Scotland) (No.3) Bill Supporting Document - roads contact Ross Williamson, Transport Scotland (tel: 0141 272 7932) and rail contact Mary Docherty, Transport Scotland (tel: 0141 272 7455)
- Tables 10.1(lower), 10.3 to 10.5 - from returns by Councils and boards to The Scottish Government - contact Euan Smith (tel:0131 244 7033) or email: firstname.lastname@example.org .
- Tables 10.2 - Transport Scotland Trunk Roads Network Management. Contact Ross Williamson, Transport Scotland (tel: 0141 272 7932)
- Tables 10.6 - The Department of Energy and Climate Change. Contact Susan Lomas (tel: 0300 068 5047).
- Table 10.7 - http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/indexl Table 42. - (tel: 0207 533 5845)
- Table 10.8 - The Office for National Statistics Family Spending publication, http://www.ons.gov.uk/ons/rel/family-spending/family-spending/family-spending-2011-edition/indexl table A35 - (tel: 0207 533 5756).
6. Other data sources
As well as the data sources listed above, data on spend by UK Government can be found on the HM Treasury web pages.
Source: Expenditure on a and b above provided by Transport Scotland - Not National Statistics
1. Includes all costs related to the construction of Major Road Projects.
2. Includes all costs in relation to the reconstruction and overlay of road network. Figures for 2001/02 - 2007/08 have been moved to current expenditure to reflect changes in recording practices.
3. Includes all costs in relation Roads and Bridges Network Strengthening and Minor Improvements that is not classed as Capitalised Maintenance. Figures for 2008-09 onwards have been amended to include money moved from capital to current expenditure to reflect changes to recording practices.
4. Figures are on a cash basis up to 2003-04 and on an accruals basis from 2004-05 onwards. Capital Funded from Current Revenue is included.
5. Includes Network & Traffic Management, Bridges and Parking
6. Includes Shipping, Transport piers and ferry terminals
7. Includes subsidies for the Community Transport Association, piers, harbours, road safety, safer routes to schools and additional concessionary fares support to Local Authorities (prior to 2007).
8. The revenue account figures are reported on an accruals basis (i.e. reflected in the accounts of the period in which they take place).
9. Includes support for LA and non-LA transport undertakings, and revenue contributions to capital.
10. SG took responsibility for these areas in 2001-02. In respect of rail services in Scotland from 2003/04 this figure includes grant paid to Strathclyde Passenger Transport for rail passenger services in the SPT area, and from 2006-07 it includes funding for Network Rail in Scotland (which was previously the responsibility of the Department for Transport). British Waterways renamed Scottish Canals following split.
11. Separate figures for each of these categories were not available prior to 2003 -04
12. The NCT schemes were introduced in April 2006. From April 2010 NCT electronic (Smartcards) required on-board Smartcard equipment.
1. For the purpose of maintenance from 2001-02, the trunk road network was sub-divided into 4 operating units (see Notes)
2. These figures do not include costs for expenditure outside Operating Company control i.e. (Traffic Scotland Operations, PAG contract etc).
1. Support service costs (e.g. administrative buildings and services such as legal, personnel, accountancy, IT and estates management), are included in the various service totals.
2. The Scottish National Concessionary Travel bus scheme was introduced in April 2006 and administered by Transport Scotland, therefore local authority figures no longer cover bus travel but cover rail, subway, ferry and some taxi schemes. Further statistics on concessionary travel can be found in tables 11.29.
1. Capital Expenditure is recorded on a accruals basis (not cash) and includes Capital Funded from Current Revenue.
1. Capital Expenditure is recorded on a accruals basis (not cash) and includes Capital Funded from Current Revenue.
Source: DECC - Not National Statistics
1. DTI discontinued publishing the price of LRP from September 2005, due to the low volume of sales. June figures for 4 star Lead Replacement Petrol (LRP) are available in previous editions of STS.
2. From June 2001 Premium unleaded prices represent Ultra Low Sulphur Petrol (ULSP) which now accounts for virtually all Premium unleaded sold.
3. VAT is rebated to business. From 1 April 1991 it was 17.5%, 15% in 2009, 17.5% in 2010 and 20% from 2011.
4. Diesel-engined road vehicle fuel (derv).
5. From June 2000, the figures are for ultra low sulphur diesel (ULSD) which now accounts for virtually all diesel sold.
Note: Data for earlier years can be found on the DECC website http://www.decc.gov.uk/assets/decc/statistics/source/prices/qep411.xls
1. From June 2001 Premium unleaded prices represent Ultra Low Sulphur Petrol (ULSP) which now accounts for virtually all Premium unleaded sold.
1. Based on weighted data and including children's expenditure.
2. For 2001-02, a new coding frame for expenditure items was introduced to the Expenditure and Food Survey. As a result, many individual expenditure items for 2001-02 are not directly comparable with those from previous years. However, the categories still include all the same types of expenditure.
3. There are differences between the figures shown in this table and the ones in table 10.9b. The latter are on the basis which is now used in the Office for National Statistics' Family Spending publication, which reports the results of the Expenditure and Food Survey. The main differences are that:
a) the 'net purchase of motor vehicles, spares and accessories' category includes expenditure on protective head gear which in Family Spending is included within 'clothing and footwear.'
b) the 'purchase and maintenance of other vehicles and boats' category is within 'recreation and culture' in Family Spending.
c) the 'Railway fares' and 'Bus and coach fares' categories do not include expenditure on 'combined fares' (e.g. bus + train in one ticket). This expenditure is included in the 'Other travel and transport' category.
d) Air fares are not included in this table.
4. Information on expenditure on transport was not asked for in the SHS in 2007 or 2008, but will be included in 2009.
5. The figures in this column refer to the average expenditure over the three financial year periods to reduce the effect of the sampling errors