Annual Report and Resource Accounts 2008-09 HC 454 £53.15 Department for Transport Annual Report and Resource Accounts 2008-09 (For the year ended 31 March 2009) Resource Accounts presented to the House of Commons pursuant to section 6(4) of the Government Resources and Accounts Act 2000 Departmental Report presented to the House of Commons by Command of Her Majesty Resource Accounts and Departmental Report presented to the House of Lords by Command of Her Majesty Ordered by the House of Commons to be printed 16 July 2009 LONDON: The Stationery Office 16 July 2009 HC 454 £53.15 This is part of a series of departmental reports which, along with the Main Estimates 2009-10, the document Public Expenditure: Statistical Analyses 2009, the Supply Estimates 2009-10: Supplementary Budgetary Information, present the Government’s outturn and planned expenditure for 2009-10 and 2010-11 © Crown Copyright 2009 The text in this document (excluding the Royal Arms and other departmental or agency logos) may be reproduced free of charge in any format or medium providing it is reproduced accurately and not used in a misleading context. The material must be acknowledged as Crown copyright and the title of the document specified. Where we have identified any third party copyright material you will need to obtain permission from the copyright holders concerned. For any other use of this material please write to Office of Public Sector Information, Information Policy Team, Kew, Richmond, Surrey TW9 4DU or e-mail: [email protected] ISBN: 9780102961201 Contents and structure Foreword by the Secretary of State Note on Departmental financial reporting For the first time the Department is combining its Annual Report and Resource Accounts. The reader should be aware that the financial information in this publication is shown from two different perspectives and figures may, therefore, differ between Parts One and Two. For detailed information, see page 394. Part 1: Annual Report Chapter 1 Transport that works for everyone 8 Chapter 2 A sustainable transport system 14 Chapter 3 City and regional networks 20 Chapter 4 National networks 56 Chapter 5 International networks 86 Chapter 6 Sustainable development – protecting the environment 106 Chapter 7 Safety and security 126 Chapter 8 Freight and logistics 156 Chapter 9 Service transformation 166 Chapter 10 Corporate resources 178 Chapter 11 Role of executive agencies, non-departmental public bodies and other entities 198 Appendices to Part 1 Appendix A Public expenditure core tables 214 Appendix B Recruitment and public appointment tables 233 Appendix C Sponsorship 237 Appendix D Departmental Strategic Objectives and Public Service Agreement targets 245 Appendix E Procurement activity 276 Appendix F Public Accounts Committee recommendations 279 Appendix G Departmental report on better regulation 283 Appendix H European Union 287 Appendix I Ministers, Board and committees 289 Part 2: Resource Accounts Statement of Accounting Officer’s responsibilities 318 Statement of internal control 319 Certificate and Report of the Comptroller and Auditor General to the House of Commons 326 Accounting schedules: Statement of Parliamentary Supply 329 Operating cost statement 330 Statement of recognised gains and losses 331 Balance sheet 332 Consolidated cash flow statement 333 Consolidated statement of operating costs by Departmental aim and objectives 334 Notes to the Departmental Resource Accounts 335 Part 3: Note on Departmental financial reporting 394 Bibliography 399 List of abbreviations 404 Index 412 Foreword | 5 Foreword by the Secretary of State This Government is committed to delivering a transport network in the UK that works for everyone because it is reliable and accessible, effective and efficient, safe and sustainable. In 2008-09, we made significant progress in achieving this vision. Transport is the lifeblood of the UK economy. Over 1.9 million people work in transport and related industries,1 so this sector plays a vital role in helping to create and sustain employment. Moreover, by keeping goods, raw materials and commuters moving, this country’s transport networks are crucial to supporting industry, ensuring our national competitiveness and generating growth. As well as helping to build a stronger economy, transport is also an essential means of creating a fairer society. If access to transport is limited, or the level of services provided is poor, social barriers can arise – barriers that can prevent certain individuals and groups from taking part in key social activities and accessing essential public services. As such, the transport policies we advance, and the solutions we devise, are also designed to encourage social inclusion and promote equality of opportunity. The Government also recognises that transport has an impact on the environment we all share. Consequently, as well as being passenger-centred and aligned with our national economic goals, our strategy is also consistent with our broader environmental commitments. In order to meet our strategic objectives the Department’s core work is focused around areas such as shaping demand and enhancing capacity; planning and managing investment programmes for the long term; improving the operation of transport networks and services; and addressing the environmental impacts of transport through a range of measures including regulation, technology and promoting the efficient use of resources. 1 DfT Transport Statistics GB 2008 – p28 Table 1.17 6 | Department for Transport | Annual Report and Resource Accounts 2009 This programme of work is underpinned by sustained and ongoing investment. And, as this report shows, that programme is delivering measurable improvements in areas ranging from modernising transport infrastructure to tackling congestion on our roads. As well as investing to improve the transport system in the here and now, the Government is firmly focused on the need to invest in the future. We have, therefore, successfully completed the country’s first high speed rail line – High Speed One – and have set up High Speed Two, a company that is developing proposals for a new North-South high speed rail link. The work and the achievements outlined in this Annual Report are the product of an enabling policy framework and significant investment, as well as a constructive engagement with passengers, transport users, the transport industry and other stakeholders. They are also a practical demonstration of the significant advances made in building a transport system that delivers for passengers, supports our economy, strengthens our society and safeguards our environment. Over the course of the coming year we will work to ensure that the progress we have made is maintained and built upon. Rt Hon Andrew Adonis Secretary of State for Transport Chapter 1 | Chapter name | Chapter 1 Transport that works for everyone 8 | Department for Transport | Annual Report and Resource Accounts 2009 Chapter 1 Transport that works for everyone 1.1 Transport touches all our lives. Our quality of life and our aspirations for the future depend in part on the benefits which transport brings to us, collectively and as individuals. Transport helps create national economic wealth, allowing us to fund our wider goals as a society. It creates jobs. It brings us an increasingly wide range of goods and services. And it enables us to travel to work, to school, to hospital and for recreation. 1.2 But we need to recognise that we pay a price for these benefits, ranging from noise affecting nearby communities to greenhouse gas emissions which threaten us all through climate change. 1.3 So when we say our aim is ‘Transport that works for everyone’, we mean that we want to promote the benefits of transport and make them available to all, and, at the same time, limit the negative impacts. Role of the Department 1.4 Our transport system is incredibly complex – 24 million commuters and five million tonnes of freight are carried on our transport network every day. Transport is provided by a wide variety of public and private transport operators and, of course, huge numbers of private citizens travel independently, using various modes of transport. All these journeys depend on an appropriate infrastructure – again provided and funded by many different public and private organisations. Most journeys also depend on government and other public or private organisations to provide supporting framework or services. For example, the local bus company relies on local authorities to provide traffic management, including bus lanes; airlines and their passengers rely on efficient airports and on the air traffic services provided by NATS. 1 Chapter 1 | Transport that works for everyone | 9 1.5 The Department for Transport is directly responsible for only a small part of this system. Its activities, however, play a critical part in its day-to-day operation. It produces overall coherence and adapts the system to meet emerging pressures. It shapes its development to ensure that it can meet the bigger challenges and uncertainties of the longer term. This means working in three different (but overlapping) timeframes, often with different types of challenge. Day to day: 24/7 delivery and improving services 1.6 Throughout the year the Department and its Agencies have been working: ■ to keep the transport system moving – for example through its traffic officers on motorways; ■ to make it safer – for example through testing vehicles and drivers; and ■ to provide other key services to transport providers, users and the general public – for example through HM Coastguard and accident investigation branches. 1.7 The Department has also launched a number of policy initiatives which will bring immediate benefits. Here are a few headlines: ■ Coping with the worst snow for 20 years During the first week in February, the Highways Agency used around 75,000 tonnes of salt to keep open the strategic road network in England, compared to about 10,000 tonnes used in an average winter week. The Agency also helped the Local Government Association to deliver salt to hard-pressed local authorities.