Osborne announces £545m in transport cuts for 2015/16
04 June 2015
Author: Daniel Puddicombe
George Osborne has announced transport budget cuts of £545 million for 2015-16 as part of a wider Whitehall budget review process to save £4.5 billion.
The transport budget cut is the largest of the Government department's budget saving measures.
The DfT told BusinessCar funding for planned investment for road infrastructure, autonomous vehicles and the plug-in vehicle grant will not be cut as part of the cost savings.
Part of the cuts include the Government bringing forward sale of land around King's Cross, which is valued at £345 million.
That leaves £200m in further cuts to transport. A Department for Transport spokesman confirmed that £124m of the cuts is coming from the department's financial buffer, £31m of the cuts will come from a reduction in Transport for London's budget and the remaining amount will come from expected underspending from various projects and funds.
The DfT some of the money would come from projects that have been cancelled and will be "giving back" money that is not expected to be spent in 2015/16.