The DfT was hit with the biggest government departmental cut in the Spending Review today.
Released alongside George Osborne's Autumn Statement, the review sets out a 37% cut in the DfT's day-to-day operations budget, which will see it fall from £2.6bn this year to £1.8bn in 2019/20.
This is despite an overall 50% increase in transport capital spending to £61bn during the next five years.
The dent in DfT’s budget is higher than the 30% cut in resources Osborne forecast at a speech in London last week. Speaking at Imperial College, Osborne said that savings “will be achieved by a combination of further efficiencies in departments, closing low-value programmes, and focusing on our priorities as a country”.
Much of the cuts are set to come from London, despite the £11bn its been given for infrastructure projects, including Crossrail.
TfL's £700m annual operational budget is set to be wiped out by 2020, so the body will have to survive on cuts, commercial investments or, potentially, increasing travel fares.
The Department for Communities and Local Governments (DCLG), which was also forecast a 30% operational budget cut, will lose 29% in the coming years.
Ahead of the Autumn Statement and Spending Review the RHA was briefed that the DVSA’s enforcement budget would likely be hit as a consequence of the looming cut.
It comes after the DfT launched its Motoring Services Strategy consultation, which sets out ways to fund the DVSA, DVLA and Vehicle Certification Agency from 2016 to 2012.
The trade association also expressed concern that while large infrastructure programmes were unlikely to be affected, local roads - which are the DCLG's remit - would suffer at the hand of the cuts.
RHA director of policy Jack Semple said: “We believe councils should be given adequate resources to fund these roads, which are equally important to our members.”
In his statement, Osborne also announced a dedicated £250m fund for pothole repair.
