To ask Her Majesty's Government whether they will increase capital allocations for transport schemes in response to the current economic circumstances; and on what basis they would allocate such capital. [HL693]

The department has already announced an extra £700 million to be brought forward and spent on capital projects as part of the Government's fiscal stimulus package. This included £300 million on the procurement of diesel units as part of the department's high-level output specification for Britain's railways and £100 million on improvements to the A46.

Further to that, the department has announced details on spending of up to £6 billion to increase capacity on Britain's road network.

Capital is allocated after careful consideration is given to the risks involved, the economic benefits on offer and on value for money.