Written Question · S1W-10178 · Session 1
What expenditure it has committed on transport in 1999-2000 and how much it plans to spend in (i) 2000-01, (ii) 2001-02 and (iii) 2002-03, …
The question
To ask the Scottish Executive what expenditure it has committed on transport in 1999-2000 and how much it plans to spend in (i) 2000-01, (ii) 2001-02 and (iii) 2002-03, showing the capital charges to be incurred during each financial year; what the purpose is of the capital charges in these expenditure plans, and whether they count as part of the public expenditure allocation to Scotland through the Barnett formula.
The answer
In 1999-2000 the Scottish Executive spent £320.6 million on transport. Capital charges were not computed for this year.Expenditure plans for the next three years, which in each case include capital charges, are as follows:2000-01 | £ 877.5 million (including capital charges of £491.6 million)
2001-02 | £ 954.5 million (including capital charges of £528.4 million)
2002-03 | £1,008.4 million (including capital charges of £544.4 million)
These figures include grants to local authorities.Capital charges represent depreciation and the cost of capital (currently 6%). A feature of the newly introduced Resource Accounting and Budgeting, which aims to ensure that the full economic cost of government activity is measured properly, capital charges are intended to show that there is a cost to the taxpayer in tying up money for many years. The motorway and trunk road network is a very valuable asset.Capital charges are not at present allocated to Scotland through the Barnett formula. They are treated as an item of Annually Managed Expenditure, to which the Barnett Formula does not apply.
2001-02 | £ 954.5 million (including capital charges of £528.4 million)
2002-03 | £1,008.4 million (including capital charges of £544.4 million)
These figures include grants to local authorities.Capital charges represent depreciation and the cost of capital (currently 6%). A feature of the newly introduced Resource Accounting and Budgeting, which aims to ensure that the full economic cost of government activity is measured properly, capital charges are intended to show that there is a cost to the taxpayer in tying up money for many years. The motorway and trunk road network is a very valuable asset.Capital charges are not at present allocated to Scotland through the Barnett formula. They are treated as an item of Annually Managed Expenditure, to which the Barnett Formula does not apply.
In the Official Report
No contribution in the Official Report cites S1W-10178 by reference.