Reducing Costs In The Department For Transport
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| Author | : Great Britain: National Audit Office |
| Publisher | : The Stationery Office |
| Total Pages | : 40 |
| Release | : 2011-12-14 |
| Genre | : Business & Economics |
| ISBN | : 9780102977059 |
The 2010 spending review set a transport budget that is 15 per cent lower in 2014-15 compared with 2010-11. All areas of spending are affected by reductions, but the Highways Agency sees the biggest reduction, with a budget falling from £3.2 billion in 2010-11 to £2.1 billion in 2014-15. The Department felt constrained in altering some areas of spending, most significantly excluding from consideration the current grant to Network Rail. In a sample of 73 per cent of the Department's budget, over half of the reductions, compared to planned spending, are the result of cuts, delays to new investment or higher fares rather than new approaches to delivering the same services for less. The Department had a good understanding of the relationship between costs and benefits regarding specific transport projects such as Crossrail and national road schemes. Information was less good in other areas, the weakest being in rail. The Department commissioned work to improve its information on the costs and benefits from grants to Transport for London and local authorities. There is a risk now that a proportion of the budget reductions in road maintenance and rail budgets may not be financially sustainable. Budget reductions of £1.23 billion will be made to national and local road maintenance; however, this includes £223 million of unspecified efficiencies, risking deterioration in road quality and higher long term costs to the Department or local authorities. One year after the spending review, it is too early to assess with confidence progress on the major cost reduction measures, as most of the critical milestones against which progress can be judged lie ahead
| Author | : Great Britain: Parliament: House of Commons: Committee of Public Accounts |
| Publisher | : The Stationery Office |
| Total Pages | : 44 |
| Release | : 2012-03-13 |
| Genre | : Business & Economics |
| ISBN | : 9780215042927 |
As part of the 2010 Spending Review the government announced a significant reduction in the budget of the Department for Transport, with spending due to be 15% lower by 2014-15, in real terms, than the Department's £12.8 billion budget in 2010-11. The Department prepared early, identifying areas for budget reductions based on good analysis. But for road users, railway passengers and taxpayers, there are many questions which remain unanswered. The Department doesn't fully understand the impact of its cuts to road maintenance. There is concern that short-term budget cutting could prove counter-productive, costing more in the long-term as a result of increased vehicle damage and the higher cost of repairing the more severe road damage. Another area of concern is rail spending. The Department spends two-thirds of its budget through third party organisations such as Network Rail and Transport for London. While information and assurance have improved over some third party spending, there is still a lack of proper accountability and transparency for Network Rail. Rail budgets aren't being reduced as much as other areas, yet passengers still face high fares. The Department hands Network Rail over £3 billion each year, underwrites debt of over £25 billion and continues to treat it as a private sector company. The National Audit Office must be allowed full audit access as quickly as possible.. Better contingency plans for dealing with threats to its planned budget reductions also need to be developed - for example if some of its planned efficiency savings do not deliver or if inflation is higher than forecast
| Author | : Great Britain: National Audit Office |
| Publisher | : The Stationery Office |
| Total Pages | : 44 |
| Release | : 2012-02-02 |
| Genre | : Business & Economics |
| ISBN | : 9780102975376 |
This report by the National Audit Office on progress by central government departments in reducing costs concludes that departments took effective action in 2010-11, cutting spending in real terms by 2.3 per cent or £7.9 billion, compared with 2009-10. The analysis of departments' accounts supports the Efficiency and Reform Group's estimate that Government spending moratoria and efficiency initiatives, including cuts to back-office and avoidable costs, contributed around half of the figure, some £3.75 billion. However, the report warns that departments are less well-placed to make the long-term changes needed to achieve the further 19 per cent over the four years to 2014-15, as required by the spending review. This is partly because of gaps in their understanding of costs and risks, making it more difficult to identify how to deliver activities and services at a permanently lower cost. Fundamental changes will be needed to achieve sustainable reductions on the scale required. It is unclear how far spending reductions represent year-on-year changes in efficiency, or whether front-line services are affected; and the departments' forward plans examined by the NAO are not based on a strategic view. Departments' financial data on basic spending patterns is sufficient to manage budgets in-year, but information about the consequences of changes in spending is less good. Longer term reform is a Cabinet Office priority and departments will need to look beyond short-term cost cutting measures and make major operational change. Cost reduction plans also need to build in contingency measures to cover unexpected risks.
| Author | : Great Britain: National Audit Office |
| Publisher | : The Stationery Office |
| Total Pages | : 40 |
| Release | : 2011-06-23 |
| Genre | : Business & Economics |
| ISBN | : 9780102969740 |
The NAO reports that the Department for Work and Pensions will have to make rapid progress in reorganising the way it operates if it is to meet its target of achieving sustainable running cost reductions of £2.7 billion while implementing substantial welfare reforms and a £17 billion reduction in benefits and pensions by 2014-15. Since 2007, the Department has reported reductions of £2 billion in its running costs, and initial out-turn data show that it met its target from the June 2010 Budget to reduce running costs by £535 million in 2010-11. However, the NAO has concluded that the Department must make progress quickly in order to be able to demonstrate that it can secure sustained cost reductions in a structured and strategic way. The report recognises that the DWP is only at the start of its new cost reduction challenge. However, without basing its running cost reduction plans more on robust information on the profile of its business costs and how that relates to the value of the services delivered, the Department is not in the position to make rational choices about what it should stop doing, what it should change and what it should continue. Recent cost reductions have been based largely on budget restrictions rather than on fundamental reform of working practices. Three months into the Spending Review and the Department does not yet have a detailed model of how it wants to run in the future.
| Author | : Great Britain: Parliament: House of Commons: Committee of Public Accounts |
| Publisher | : The Stationery Office |
| Total Pages | : 36 |
| Release | : 2012-04-27 |
| Genre | : Political Science |
| ISBN | : 9780215043818 |
The National Audit Office report on this topic published as HC 1788, session 2010-12 (ISBN 9780102975376)
| Author | : Great Britain: Parliament: House of Commons: Environmental Audit Committee |
| Publisher | : The Stationery Office |
| Total Pages | : 391 |
| Release | : 2006-08-07 |
| Genre | : Business & Economics |
| ISBN | : 0215030427 |
The Committee's report examines the challenges involved in efforts to reduce carbon emissions from the UK transport sector and makes recommendations to improve future progress, as part of its overall priority for the current Parliament of focusing on climate change issues. Topics discussed include: the Government's strategic priorities; measures to reduce carbon emissions from road transport, trains, water freight and aviation; emissions from developing economies; the future price and availability of oil. This volume contains a range of oral and written evidence taken by the Committee in the course of its inquiry, including contributions from officials from the Department for Transport, Transport for London, the Environment Agency, Transport 2000 and Sustrans, as well as from environmental groups and from representatives from the motoring, aviation, rail, freight transport and shipping industries.
| Author | : United States. Congress. House. Committee on Appropriations. Subcommittee on Department of Transportation and Related Agencies Appropriations |
| Publisher | : |
| Total Pages | : 1166 |
| Release | : 1978 |
| Genre | : United States |
| ISBN | : |
| Author | : Great Britain: National Audit Office |
| Publisher | : The Stationery Office |
| Total Pages | : 40 |
| Release | : 2010-07-20 |
| Genre | : Political Science |
| ISBN | : 9780102965391 |
This report discusses how much the Treasury's Value for Money savings programme has improved value for money across government. The programme aims to achieve government-wide annual savings of £35 billion from 2008-09 to 2010-11. Today's report concludes that the Treasury's design addressed some weaknesses in earlier savings programmes, and departments have made some progress in their management of their programmes compared with previous spending periods. Nevertheless, departments' planned programmes did not contain sufficient contingency and it is unlikely that departments will achieve the government-wide target of £35 billion of annual savings, which fully meet the Comprehensive Spending Review criteria, in 2010-11. To date the NAO has reviewed reported savings amounting to some £2.8 billion from five major departments which are to deliver around 40 per cent of the government-wide total. The NAO has concluded that 38 per cent fairly represented sustainable savings (green); 44 per cent may represent savings but with some uncertainty (amber); and 18 per cent do not represent, or significantly overstate, savings (red). Common problems include the use of unsuitable baselines for the calculation of savings, a lack of transparency over arms-length bodies' reporting processes, and difficulties in demonstrating links between savings and performance. This report is accompanied by the NAO's reviews of the value for money savings reported by the Ministry of Defence (HC 292, ISBN 9780102965407); HM Revenue Customs (HC 293, ISBN 9780102965414); and the Department for Education (HC 294, ISBN 9780102965421)
| Author | : Great Britain: Parliament: House of Commons: Transport Committee |
| Publisher | : The Stationery Office |
| Total Pages | : 44 |
| Release | : 2014-10-07 |
| Genre | : Business & Economics |
| ISBN | : 0215075897 |
The Government's motoring agencies are undergoing reorganisation and are introducing digital services; both changes have potential to bring welcome improvements. The Government has a mixed approach to organisational change in the agencies with different emphasis on efficiency savings, restructuring, and private sector involvement across the agencies. It needs to do more to explain the future direction for all the motoring agencies and how it will create a more unified service. The agencies could do more to recognise and respond to the needs of business users. There are a number of specific areas that require action by the Government and its motoring agencies: the driver Certificate of Professional Competence may not be delivering all the benefits expected of it and the Government should negotiate changes at a European level; the agencies need to have effective assisted digital strategies in place to help those who cannot or are unwilling to use the internet to access services; the agencies need to work with the Government Digital Service and others to address the problem of misleading copycat websites; the DVLA needs to do more to explain how it is required to share personal data with private parking companies and the safeguards that are in place to protect such data; the DVLA needs to adjust it's fees to ensure costs are covered and do more to explain it's calculations; and data sharing needs to be effective, if revenue collection, action on safety and work by enforcement agencies are to be effective, and new services need to be planned with data sharing in mind
| Author | : Sean McCartney |
| Publisher | : Taylor & Francis |
| Total Pages | : 210 |
| Release | : 2023-05-23 |
| Genre | : Business & Economics |
| ISBN | : 1000880966 |
The privatisation of the British railway industry was a unique political and economic event. An integrated industry was broken-up into numerous component parts and sold off to private sector interests. The result was a highly fragmented industry that was structurally unsound and operationally dysfunctional. This authoritative volume presents an enlightening portrait of an industry that is less efficient, more costly and still more dependent on state subsidy today than its nationalised predecessor. The nine chapters in this work present a comprehensive and rigorous evaluation of how and why the industry has become so dysfunctional and costly, supported by detailed financial analysis and industry examples. Seven chapters comprise a series of peer-reviewed academic papers by Professor McCartney and Dr Stittle and published in leading international journals over the period 2004–2017 which analyse selected key segments of the privatised industry: where appropriate, updates are provided at the end of these chapters outlining developments since initial publication relevant to the analysis therein. Two chapters are published here for the first time: Chapter 7 reviews the performance of the freight sector, while Chapter 1 ‘bookends’ the volume by providing first, an account of how rail privatisation was conceived and implemented in the 1980s/90s, and then reviews the impact of the pandemic and the proposals of the Williams-Shapps White Paper of 2021 which, if enacted, will effectively end the Major government’s experiment. Going far beyond the usual superficial analysis of the topic, this volume will be of significant interest to researchers and advanced students of accounting, economics, business history, transport studies, as well as industry and specialised business interests in transport and privatisation.
