Chapter 10 - Finance

Introduction

This chapter provides information on finance, such as expenditure on transport within Scottish Ministers’ responsibility and on transport controlled by Local Authorities. It shows capital and current expenditure on motorways and trunk roads, Local Authority revenue and capital income and expenditure on roads and transport, government grants for the construction and improvement of harbour facilities, petrol and diesel prices and duties, and average weekly household expenditure on transport.

Almost all the figures in this chapter are expressed in what are referred to as current, out-turn or cash prices: no table gives constant price (i.e. deflated) figures.

Key points

• Scottish Government (including Transport Scotland) spent £3,172 million on transport in 2022/23. Local Authorities spent £1,089 million in 2022/23.
• Personal spend on transport and travel accounted for 15% of household spending between 2020 and 2022.
• In 2023 petrol prices started at 148.5 pence per litre in January before falling to 143.7 pence in December. Diesel prices also fell in 2023 from 171.3 in January to 151.9 pence by December.

Main Points

Motorways & Trunk Roads

The total of capital and current expenditure on motorways and trunk roads in 2022-23 was estimated at £655 million, £18 million (3%) less than the 2021/22 figure. Total expenditure on transport within Scottish Ministers' responsibility in 2022-23 was budgeted at £3,172 million, £121 million (4%) less than in the previous year. (Table 10.1)

Expenditure on the management and maintenance of the trunk road network totalled £309m in 2021-22. The expenditure is split £52.5m on capitalised maintenance and £256.9m on routine and winter maintenance, network management and network strengthening. (These figures do not include spending on new construction). (Table 10.2)

Local Authorities

In 2022-23, net revenue expenditure on transport controlled by local authorities was £435 million. In cash terms, this was 8 per cent more than in 2021-22. Road maintenance (£243 million in 2022-23) accounted for 56% of the expenditure. The other main categories of expenditure in 2022-23 were:

• Contributions to passenger transport (excluding concessionary fares) - £116 million;
• Road lighting - £58 million;
• Network and traffic management (excluding school crossing patrols) - £36 million;

In 2022-23, the net costs for parking was £39 million, £12 million more than 2021-22. (Table 10.1)

The Local Authorities with the highest net revenue expenditure on roads and transport (excluding loan charges) in 2022-23 were: Highland, (£37.4 million), Fife (£37.2 million), South Lanarkshire (£27 million) and North Lanarkshire (£26.2 million). (Table 10.3) The table also shows local authorities’ figures for other types of expenditure in 2022/23:

• Road maintenance/Winter maintenance Fife had the highest expenditure on road maintenance (£15.4 million), followed by Glasgow (£12.9 million). Highland spent the most on winter maintenance (£10.5 million).
• Contributions to Public Transport in terms of the total net revenue expenditure on ‘local authority’ and ‘non LA’ public transport, Fife (£12.9 million) made the largest contributions to passenger transport. Edinburgh spent £10.6 million.
• Road LightingGlasgow spent most on road lighting (£8.4 million), followed by North Lanarkshire (£4.7 million).
• Parking Edinburgh had the largest and only net income from parking (£22.8 million).

Gross Capital Expenditure

Gross capital account expenditure by councils and boards on local authority roads and transport totalled £654 million in 2022-23, 21% more than the previous year. Of this total £386 million was spent on roads and £113 million on other public transport. (Table 10.5)

The local authorities with the highest gross capital account expenditure on roads and transport in 2022-23 were: Edinburgh(116.6 million), Perth and Kinross (£52.1 million) and Renfrewshire (£44.6 million). Perth and Kinross spent the most on roads (£29.1 million) followed by Perth and Kinross (£48.7 million). (Table 10.5)

The National Concessionary Travel (NCT) bus scheme was introduced in April 2006 and is administered by Transport Scotland for Scotland as a whole. Previously local authorities administered their own schemes, therefore local expenditure on concessionary travel (and therefore overall totals of spend) shown in Table 10.3 will be greatly reduced from previous years, now only covering rail, subway, ferry and some taxi schemes. Further statistics on concessionary travel can be found in table 11.29.

Travel Costs

Between 2022 and 2023 the average price of unleaded petrol decreased by 17.0 pence, and diesel increased by 19.5 pence per litre in Great Britain. In 2023, petrol prices decreased by 4.8 pence between January and December and diesel prices decreased by 19.4 pence over the same period. Tax (duty plus VAT) represented 53% of the price for unleaded petrol and 50% of the price for diesel in Great Britain in 2023, lower than they were in 2011. (Table 10.6)

The UK Retail Prices Index (RPI) rose by 49% between 2013 and 2023. Most of the Transport components of the RPI increased more rapidly than this, and therefore rose in real terms. In cash terms, the costs of the maintenance of motor vehicles increased by 42%, and there was a 193% rise in the cost of vehicle tax and insurance. The cost of purchasing a motor vehicle also rose by 22% and the cost of petrol and oil rose by 12% in cash terms over the last ten years. As a result, motoring expenditure index fell by 4%, lower than the 49% increase in the RPI and therefore a real term fall between 2013 and 2023. Over the same period, fares and other travel costs rose by 68% in cash terms - rail fares by 36% and bus and coach fares by 60%, a decrease of 14% for rail fares and an increase 11% for bus and coach travel compared to general inflation . (Table 10.7)

Average weekly household expenditure in Scotland on transport and vehicles in 2020-22 was £69.20, representing 14.5% of total household expenditure. On average, £28.50 was spent on the purchase of vehicles, £25.80 on the operation of personal transport (including £16.60 on petrol, diesel and other motor oils) and £14.80 on transport services (such as bus and train fares). (Table 10.8)

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Notes

Note 1

Includes all costs related to the construction of Major Road Projects.

Note 2

Includes all costs in relation to the reconstruction and overlay of road network. Figures for 2001/02 - 2007/08 have been moved to current expenditure to reflect changes in recording practices.

Note 3

Includes all costs in relation to Roads and Bridges Network Strengthening and Minor Improvements that are not classed as Capitalised Maintenance. Figures for 2008-09 onwards have been amended to include money moved from capital to current expenditure to reflect changes to recording practices.

Note 4

Includes subsidies for the Community Transport Association, piers, harbours, road safety, safer routes to schools and additional concessionary fares support to Local Authorities (prior to 2007).

Note 5

The revenue account figures are reported on an accruals basis (i.e. reflected in the accounts of the period in which they take place).

Note 6

Includes support for LA and non-LA transport undertakings.

Note 7

SG took responsibility for these areas in 2001-02. In respect of rail services in Scotland for rail passenger services, and from 2006-07 it includes funding for Network Rail in Scotland (which was previously the British Waterways renamed Scottish Canals following split.responsibility of the Department for Transport). 

Note 8

Separate figures for each of these categories were not available prior to 2003 -04

Note 9

The NCT schemes were introduced in April 2006. From April 2010 NCT electronic (Smartcards) required on-board Smartcard equipment. 2013/14 NCT schemes included £1.7m transitional aid via s38 of the Transport Scotland Act 2001. (NB 2012/13 spend included £13m transitional aid in total.)

Note 10

From 2001-02 onwards these figures are on an accruals basis and for the years prior to 2001-02 are on a cash basis but do not include depreciation

Note 11

From 2001-02 onwards administration costs are included within various services.

Note 12

For the purpose of maintenance from 2001-02, the trunk road network was sub-divided into 4 operating units (see Notes)

Note 13

These figures do not include costs for expenditure outside Operating Company control i.e. (Traffic Scotland Operations, PAG contract etc).

Note 14

The Forth Bridge Operating Contract commenced on 1 June 2015 and ended in 2020/21

Note 15

Support services costs, such as IT, HR, Legal etc., are included under the relevant subservice

Note 16

The Scottish National Concessionary Travel bus scheme was introduced in April 2006 and administered by Transport Scotland, therefore local authority figures no longer cover bus travel but cover rail, subway, ferry and some taxi schemes. Further statistics on concessionary travel can be found in table 11.29.

Note 17

Capital Expenditure is recorded on a accruals basis (not cash) and includes Capital Funded from Current Revenue.

Note 18

DTI discontinued publishing the price of LRP from September 2005, due to the low volume of sales. June figures for 4 star Lead Replacement Petrol (LRP) are available in previous editions of STS.

Note 19

From June 2001 Premium unleaded prices represent Ultra Low Sulphur Petrol (ULSP) which now accounts for virtually all Premium unleaded sold.

Note 20

VAT is rebated to business. From 1 April 1991 it was 17.5%, 15% in 2009, 17.5% in 2010 and 20% from 2011.

Note 21

Diesel-engined road vehicle fuel (derv).

Note 22

From June 2000, the figures are for ultra low sulphur diesel (ULSD) which now accounts for virtually all diesel sold.

Note 23

Note: Data for earlier years can be found on the DECC website

Note 24

From June 2001 Premium unleaded prices represent Ultra Low Sulphur Petrol (ULSP) which now accounts for virtually all Premium unleaded sold.

Note 25

Based on weighted data and including children's expenditure.

Note 26

The figures in this column refer to the average expenditure over the three financial year periods to reduce the effect of the sampling errors

Note 27

ONS have changed the reporting period from calendar years to financial years . Users should exercise caution when making comparisons with previous years.