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Subsidies

Volume 204: debated on Friday 28 February 1992

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To ask the Secretary of State for Transport if he will publish the total of revenue subsidy given to (a)London Underground, (b)London Buses, (c)Network SouthEast and (d)British Rail in each year from 1980–81 to 1994–95 (estimated), showing the financing sources for such subsidy in each year.

Government grant is not paid separately to London Underground and London Buses. London Transport makes a claim for block grant each year on the basis of the external financing limit announced in the previous year's autumn statement. It is not possible, in advance of the claim, to apportion the grant for future years between revenue and capital. Over the next three years, Government grant to LT will be about £3·7 billion.Subsidy is paid by the Government to the British Railways Board in the form of the public service obligation grant under EC regulation 1191/69 and section 3 of the Railways Act 1974, which compensates BR for maintaining loss-making passenger services. Grant is paid as a total to the board and the Government do not formally allocate it between sectors or geographical areas. However, estimates on the split for future grant allocations are now produced by the Department of Transport. Previous figures for NSE have been produced by BR in its document "Network Factfile 1991". The table shows BR's and NSE's PSO grant and LT revenue grant.

1990–91 prices (£000m)
PSO grantPSO (NSE) grantLT revenue grant
19801,039n.a.4166
19811,231n.a.4135
19821,24914714286
19831,25013594257
1984–851,4871326208

PSO grant

PSO (NSE) grant

LT revenue grant

1985–861,085

165

166
1986–87883

1184

85
1987–88925

1214

56
1988–89606

1141

44
1989–90541

192

51
1990–91600

1153

84

31991–92

850325

5114

31992–9 3

900350

31993–94

700275

31994–95

50075

1

Source:NSE document "Network Factfile 1991".

2 1984–85 was a 15-month period. The figure quoted is the 12-month equivalent.

3 Estimates—source: Department of Transport Report 1992.

4 LT was the responsibility of GLC in these years.

5 Forecast outturn.