Corporate report

DfT Main Estimates Memorandum: 2024 to 2025

Published 5 August 2024

Objectives

The Department for Transport’s vision is to ‘connect people and places’ – people want reliable, comfortable and affordable journeys and through significant investments we are making people’s journeys easier, safer, and faster. We play a vital role in supporting the economy by creating an inclusive transport network for everyone as well as a safer, more secure, and sustainable transport system. 

The department’s strategic aims as set out in spending review 2021 are:

1. grow and level up the economy by improving connectivity across the United Kingdom (UK) and by enhancing the transport network on time and on budget
2. reduce our environmental impact by tackling climate change and improving air quality by decarbonising transport
3. improve transport for the user by building confidence in the transport network and improve transport users’ experience, ensuring that the network is safe, reliable, and inclusive

The department has also set out its strategic enablers:

• international (what was previously called, ‘increasing our global impact’)
• science and technology
• safety and security
• be an excellent department

Spending controls

DfT’s spending is broken down into budgetary control totals, for which Parliamentary approval is sought.

The spending totals which Parliament votes are:

• resource departmental expenditure limit (resource DEL): day to day running costs and costs of programme delivery, split between:
  • administration costs: staff and associated costs
  • resource programme costs: resources used directly to support policy objectives
• capital departmental expenditure limit (capital DEL):  investment in infrastructure
• resource annually managed expenditure (resource AME):  mainly provisions and interest costs – in DfT’s case mainly Network Rail
• capital annually managed expenditure (capital AME): mainly movements in capital provisions, in DfT’s case, mainly High-Speed Rail and National Highways

In addition, Parliament votes for a net cash requirement designed to cover the elements of the above budgets, which require DfT to pay out cash in year.

Main areas of spending

The charts below show the key areas of DfT’s DEL funding sought in the latest main estimate 2024 to 2025. The resource DEL numbers include depreciation.

Figure 1: resource DEL, £17.4 billion

Figure 2: capital DEL, £19.9 billion

Note: negative values were omitted from all the tree-maps for presentational alignment.

The main estimate also includes circa £4.9 billion AME, of which circa £4.5 billion is allocated to Network Rail.

The net cash requirement for the financial year 2024 to 2025 in the main estimate is £31.9 billion.

Comparison of spending totals sought

The table and graph below show how the totals sought in the main estimate 2024 to 2025 compared to final budgets sought in the supplementary estimate 2023 to 2024 as well as to last year’s main estimate 2023 to 2024.

Table 1: main estimate 2024 to 2025 comparison

Spending	Total amounts sought this year (main estimate 2024 to 2025) (£ million)	Compared to final budget last year (supplementary estimate 2023 to 2024) (£ million)	Compared to final budget last year (supplementary estimate 2023 to 2024) (%)	Compared to original budget last year (main estimate 2023 to 2024) (£ million)	Compared to original budget last year (main estimate 2023 to 2024) (%)
Resource DEL	17,399.24	-2,963.35	-17.0%	+357.51	+2.1%
Capital DEL	19,948.88	-2,200.59	-11%	-756.31	-3.8%
Resource AME	4,961.07	-14.91	-0.3%	-14.91	-0.3%
Capital AME	-101.40	-184.39	+181.8%	-184.39	+181.8%

Table 2: DEL and AME budgets (£ million)

DEL or AME	Main estimate 2023 to 2024 (£ million)	Supplementary estimate 2023 to 2024 (£ million)	Main estimate 2024 to 2025 (£ million)
Resource DEL	17,041.73	20,362.59	17,399.24
Capital DEL	20,705.19	22,149.47	19,948.88
Resource AME	4,975.99	4,975.99	4,961.07
Capital AME	82.99	82.99	-101.40

Key drivers of spending changes since 2023 to 2024

In 2023 to 2024, DfT received reserve claims to support its transport functions as well as additional non-cash depreciation cover while the main estimate 2024 to 2025 budgets are reflecting the spending review 2021 (SR21) settlement allocations, hence the reduction in DEL and AME since the supplementary estimate 2023 to 2024.

The increase in resource DEL since the main estimate 2023 to 2024 is due to an increase in non-cash depreciation because of inflationary increases in the value of DfT’s assets.

The small change in resource AME represents the net change after movements between sections related to the take up of provisions and depreciation.

The main change in capital AME is due to changes in provisions for High-Speed Rail (HSR).

New policies and programmes

There have been no changes in this section.

Spending trends

The table below shows overall spending trends for the last five years and plans presented in main estimates for 2024 to 2025. Numbers exclude depreciation and other non-cash.

Table 3: spending trends (£ billion)

DEL or AME	SR19 outturn 2020 to 2021	SR20 outturn 2021 to 2022	SR21 outturn 2022 to 2023	SR21 plans 2023 to 2024	SR21 plans 2024 to 2025
DEL – resource (excl non-cash)	16.31	10.37	7.59	8.20	6.98
DEL – capital (excl non-cash)	17.03	19.15	20.52	22.15	19.95
AME – resource (excl non-cash)	1.14	2.12	1.25	3.50	3.51
AME – capital (excl non-cash)	0.86	0.08	-0.11	0.08	-0.10

Resource DEL

Resource DEL reduction in 2021 to 2022 and 2022 to 2023 reflects the reduced costs of government interventions to support the transport sector during the COVID-19 pandemic, as the industry and passenger numbers recovered.

The increase in 2023 to 2024 is due to demand being lower than forecasted at SR21 and due to the ongoing impact of Industrial Action, which has created pressures against rail revenue. 

The reduction in 2024 to 2025 reflects the department’s requirements for this financial year as agreed in the SR21 settlement compared to the financial pressures in 2023 to 2024 and the additional support provided to the transport sector. 

Any additional funding requirements for 2024 to 2025 will be assessed in year and addressed in the supplementary estimate 2024 to 2025.

Capital DEL

Capital DEL has been steadily increasing in cash terms as the department was allocated further budgets at the SR19, SR20 and SR21 to support increasing programmes of work delivered by National Highways, Network Rail and HS2 Ltd.

Like resource DEL, the reduction in 2024 to 2025 reflects the department’s requirements for this financial year as allocated in the SR21 settlement compared to the financial pressures we faced in 2023 to 2024 and the additional support provided to the transport sector.

Similarly, any additional funding requirements for 2024 to 2025 will be assessed in year and addressed in the supplementary estimate 2024 to 2025.

Resource AME

Resource AME moves with the rate of RPI inflation and other economic variables, increasing/decreasing index-linked interest costs and other non-cash costs.

Capital AME

Capital AME broadly remained stable.

Administration costs

Administration costs have remained at the same levels compared to last year’s budgets.

Table 4: administration costs

Spending total: amounts sought this year (main estimate 2024 to 2025) (£m)	Compared to final budget last year (supplementary estimate 2023 to 2024) (£m)	Compared to final budget last year (supplementary estimate 2023 to 2024) (%)	Compared to original budget last year (main estimate 2023 to 2024) (£m)	Compared to original budget last year (main estimate 2023 to 2024) (%)
371.47	-4.75	-1%	-0.08	0%

Funding: spending review 2021 and 2024 to 2025 budgets

The levels of DEL funding for DfT are based on the plans published in the SR21. Since then, the following changes were made reflecting prior agreements:

• the department already surrendered during the main estimate 2023 to 2024, £20.7 million of NIC RDEL funding from the SR21 settlement for 2024 to 2025, following the reversal of the Health and Social Care Levy

• the department received in main estimate 2024 to 2025 an uplift of £721 million resource DEL budget for Network Rail as part of the control period 7 (CP7) settlement reached with HMT earlier this year

• in addition, the department transferred (net) £17.2 million resource DEL to and received £3.1 million capital DEL from other government departments

Spending detail

Explanations of changes in spending

Resource DEL

Table 5: breakdown of programme within each resource DEL estimate line, compared with the 2023 to 2024 supplementary estimate

Subheads	Description	Resource DEL main estimate 2024 to 2025 (£m)	Supplementary estimate 2023 to 2024 (£m)	Change from supplementary estimate (£m)	Change from supplementary estimate (%)	Note number
A	Tolled crossings	-105.9	-103.0	-2.8	3%	N/A
B	Local authority transport	321.3	382.3	-61.0	-16%	1
C	National Highways ALB (net)	2,918.0	3,540.0	-622.0	-18%	2
D	Funding of other ALBs (net)	-25.0	-36.7	11.6	-32%	3
E	Other railways	168.0	211.5	-43.5	-21%	4
F	Sustainable travel	227.2	140.4	86.8	62%	5
G	Bus subsidies and concessionary fares	513.8	939.8	-425.9	-45%	6
H	GLA transport grants	1.6	254.5	-252.9	-99%	7
I	Crossrail	-42.6	-41.0	-1.6	4%	N/A
J	Aviation, maritime, security and safety	128.7	73.8	54.9	74%	8
K	Maritime and Coastguard Agency (MCA)	443.7	416.6	27.1	7%	N/A
L	Motoring agencies	87.7	82.3	5.4	6%	N/A
M	Science, research, and support functions	32.5	30.6	1.9	6%	N/A
N	Central administration	360.7	461.6	-100.9	-22%	9
O	Support for passenger rail services	1,532.9	2,696.9	-1,164.0	-43%	10
P	High Speed Rail	56.6	221.3	-164.6	-74%	12
Q	Transport development fund	27.0	10.6	16.4	154%	11
R	HS2 Limited (net)	11.3	1,292.0	-1,280.7	-99%	12
S	East West Rail Company Limited (net)	143.5	96.6	46.8	48%	13
T	Network Rail	10,579.9	9,677.3	902.6	10%	14
U	Funding of other ALBs (net) non-voted	18.3	15.0	3.3	22%
	Total voted and non- voted	17,399.2	20,362.6	-2,963.3	-15%	N/A

Table notes

Differences of more than 10% and more than or less than £10 million are explained below. Numbers relate to the relevant row in the table above.

Further details of spending within these totals are given in Annex A.

1) Local authority transport

Resource DEL spending is forecast to reduce by £61.1 million (16%) since last year’s supplementary estimate. This is steered by:  

• lower net costs relating to the Mersey Gateway PFI agreement
• additional revenue support was given to the Greater Manchester Combined Authority in 2023 to 2024 (£18 million), no further support is planned for 2024 to 2025

2) National Highways

Resource DEL spending is forecast to reduce by £622 million (18%) since last year’s supplementary estimate.

This is steered by forecast costs for the full financial year as agreed in SR21. Additional depreciation was agreed in the supplementary estimate for 2023 to 2024.

Any requirement for 2024 to 2025 will be agreed with HMT following an in-year review of the valuation of the Strategic Road Network.

3) Funding of other ALBs

Resource DEL spending is forecast to increase by £11.6 million (32%) since last year’s supplementary estimate. This is steered by:  

• a net increase in the Air Travel Trust Fund of £24.5 million. Sales of travel package holidays in 2023 to 2024 were much higher than expected and hence the income from ATOL protected charges was much higher. It is assumed that this trend will not continue into 20 24 to 2025

• the forecast for British Transport Police is in line with the cost agreed in SR21. The net reduction of £12.1 million is due to one off in-year increases in resource DEL expenditure at the 2023 to 2024 supplementary estimates. These were related to pay and non-cash cover

4) Other railways

Resource DEL spending is forecast to reduce by £43.4 million (21%) since last year’s Supplementary Estimate. This is steered by:  

• £62.6 million lower rail reform costs due to a change in reform timeline and scope resulting in a revision of TOC business cases post the outcome of the ticket office consultation

• partially offset by £20.3 million Northern Powerhouse Rail (NPR) increase, which reflects the current profiling of development expenditure with HS2

5) Sustainable travel

Resource DEL spending is forecast to increase by £86.9 million (62%) since last year’s supplementary estimate. This is steered by:  

• £62 million funding for improving smart ticketing (pay as you go) network included as resource DEL in the spending review and as in previous years, this funding will be reclassified to capital DEL at the supplementary estimate. This is a technical switch that has no impact on total spending

• technical adjustments in relation to cycling schemes of £12 million that are offset by other smaller spending movements within the sustainable travel estimate line

6) Bus subsidies and concessionary fares

Resource DEL spending is forecast to decrease by £425.9 million (45%) since last year’s supplementary estimate. This is steered by:

• closure of grant schemes, for example, the Bus Recovery Grant, reflecting the continued recovery of the bus sector

• Network North funding that will be finalised at the supplementary estimate

7) GLA transport grants

Resource DEL spending is forecast to decrease by £252.9 million (99%) since last year’s Supplementary Estimate. This is steered by:

• the long-term funding deal for Transport for London (TfL), which concluded in March 2024. No further resource DEL support funding is planned for TfL in 2024 to 2025

8) Aviation, maritime, security and safety

Resource DEL spending is forecast to increase by £54.9 million (74%) since last year’s supplementary estimate. This is steered by:   

• a £31 million reduction in Eurocontrol receipts. During 2023 to 2024, the department received back-dated receipts for air traffic control activity which were foregone during the COVID-19 pandemic. This will not be repeated in 2024 to 2025

• there is a £3.3 million increase in General Aviation activities, mainly pushed by the general aviation skills programme

• several budget transfers will be made during the year but are included in the 2024 to 2025 main estimate numbers and these include:

  • £11.5 million to the Joint Maritime Security Centre
  • £3.3 million for Transport Security
  • £2.4 million for aviation related public service obligations

9) Central administration

Resource DEL spending is forecast to reduce by £101.8 million (22%) since last year’s supplementary estimate. This is mainly steered by:

• forecast costs for the full financial year as agreed in SR21. Additional one-off non-cash cover was granted in supplementary estimate 2023 to 2024 in relation to the HMRC-led shared services programme cluster

10) Support for passenger rail services

Resource DEL spending is forecast to decrease by £1,163.9 million (43%) since last year’s supplementary estimate. This reflects forecast costs for the full financial year as agreed in SR21, which factored in the expected recovery of the rail sector and planned efficiencies because of the reform programme.

There is significant financial pressure in relation to the rail sector, which is subject to discussion with HMT and any requirement for further budget cover will be addressed in the supplementary estimate.

11) Transport development fund

Resource DEL spending is forecast to increase by £16.4 million (154%) since last year. This is steered by resource funding provided for local transport networks, more specifically to Mayoral Combined Authorities (MCAs) to support the delivery of the City Region Sustainable Transport Settlements (CRSTS) programme.

12) High Speed Rail and HS2 Limited

Net resource DEL spending is forecast to reduce by £1,280.7 million (99%) since last year’s supplementary estimate. This is steered by:

• the forecast costs for the full financial year as agreed in SR21. The reduction is the effect of :
  • additional non-cash cover the department received in the supplementary estimate 2023 to 2024 for one-off impairment costs
  • additional cash cover the department received in the supplementary estimate 2023 to 2024 for costs in 2023 to 2024 that no longer met the capitalisation threshold following the Network North announcement in October 2023

13) East West Rail Company Limited

Resource DEL spending is forecast to increase by £46.8 million (48%) since last year’s supplementary estimate. This is according to the SR21 agreement and driven by the continued development of the East West Rail programme, particularly the latter connection stages.

14) Network Rail

Resource DEL spending is forecast to increase by £902.6 million (10%) since last year’s supplementary estimate. This is steered by allocations that were agreed as part of the CP7 / PR23 settlement of funding available settlement, as set out in the final determination published in October 2023.

Capital DEL

Table 6: breakdown by programmes within each capital DEL estimate line compare with the 2023 to 2024 supplementary estimate

Subheads	Description	Capital DEL main estimate 2024 to 2025 (£m)	Supplementary estimate 2023 to 2024 (£m)	Change from supplementary estimate (£m)	Change from supplementary estimate (%)	Note number
A	Tolled crossings	0.0	0.0	0.0	0	N/A
B	Local authority transport	1,562.9	1,779.1	-216.1	-12%	15
C	National Highways ALB (net)	3,520.3	3,420.7	99.6	3%	N/A
D	Funding of other ALBs (net)	30.5	18.5	12.0	64%	16
E	Other railways	115.1	214.5	-99.4	-46%	17
F	Sustainable travel	602.7	480.5	122.2	25%	18
G	Bus subsidies and concessionary fares	258.6	243.1	15.5	6%	N/A
H	GLA transport grants	5.0	823.6	-818.6	-99%	19
I	Crossrail	-174.0	-139.0	-35.0	25%	20
J	Aviation, maritime, security and safety	248.4	148.1	99.9	67%	21
K	MCA	21.8	39.5	-17.6	-45%	22
L	Motoring agencies	68.7	70.4	-1.7	-2%	N/A
M	Science, research, and support functions	52.0	44.1	7.9	18%	N/A
N	Central administration	17.2	18.0	-0.8	-4%	N/A
O	Support for passenger rail services	0.0	98.7	-98.7	-100%	23
P	High Speed Rail	290.8	405.5	-114.7	-28%	25
Q	Transport development fund	1,095.0	1,220.8	-125.8	-10%	24
R	HS2 Limited (net)	6,702.0	7,412.0	-710.0	-10%	25
S	East West Rail Company Limited (net)	0.3	1.7	-1.5	-88%	N/A
T	Network Rail	5,532.0	5,850.8	-318.8	-5%	26
U	Funding of ALBs non-voted (net)	0.0	-1.3	1.3	100%	N/A
	Total voted and non-voted	19,948.9	22,149.5	-2,200.6	-10%	N/A

Table notes

Differences of more than 10% and more than or less than £10 million are explained below. Numbers relate to the relevant row in the table above. Further details of spending within these totals are given in Annex A.

15) Local authority transport

Capital DEL spending is forecast to reduce by £216.1 million (12%) since last year’s supplementary estimate. This is steered by the phasing of multi-year capital grant programmes and delays to certain programmes due to uncertainty caused by inflation.

16) Funding of other ALBs

Capital DEL spending is forecast to increase by £12 million (64%) since last year’s supplementary estimate. This is steered by capital costs of £10 million for the British Transport Police (BTP), which is migrating to a new headquarters later in 2024.

17) Other railways

Capital DEL spending is forecast to reduce by £99.4million (46%) since last year. This is mainly due to:

• a reduction of £70 million in relation to funding for the Tyne and Wear Metro, £40 million of which is in relation to the profile of expenditure on the New Fleet programme as it nears completion and £30 million reflects that the capital maintenance is now funded from CRSTS

• a reduction of £49 million for rail infrastructure projects, which reflects that the supplementary estimate of 2023 to 2024 included transfers of funding from RNEP (NR) for third party delivered projects. This transfer will be replicated in this year’s SE

• partially offset by a £19.5 million increase, reflecting the profile of funding available to support the development of a Leeds Mass Transit system

18) Sustainable travel

Net capital DEL spending is forecast to increase by £122.2 million (25%) since last year’s supplementary estimate. This is mainly steered by:

• approximately £26 million for the launching of Rapid Charging Fund pilot to future-proof electrical capacity and motorway and major A-road service areas

• £45 million for the Zero Emissions Road Freight Demonstrator (ZERFD) grant schemes

• £64 million for plug-in-grants due to higher than anticipated cancellation rates suppressing outturn in 2023 to 2024

• £4 million for joint air quality unit (JAQU) to reflect the requirement for local authorities

• £4.5 million towards Centre for Connected and Autonomous Vehicles (CCAV) due to delays in 2023 to 2024

Furthermore:

• £45 million reflects the underspends that were identified in 2023 to 2024 to support departmental pressures in other sections

• offset by the £66 million funding for smart ticketing (Pay as you go) network, which was included as resource DEL in the SR and as in previous years, this funding will be reclassified to capital DEL at the supplementary estimate. This is a technical switch that has no impact on total spending

19) GLA transport grants

Net capital DEL spending is forecast to reduce by £818.6 million (99%) since last year’s supplementary estimate. This is due to the long term funding deal for TfL that concluded in March 2024.

No further funding is provided for TfL in the 2024 to 2025 main estimate. Any further funding requirements arising during the year will be agreed with HMT and considered in the supplementary estimate.

20) Crossrail

Capital DEL income from Crossrail loans is forecast to increase by £35 million (25%) since last year’s supplementary estimate.

As the full Crossrail loan funding has now been drawn down, the 2024 to 2025 capital DEL budget includes repayment towards the principal of the loans.

21) Aviation, maritime, security and safety

Capital DEL spending is forecast to increase by £99.9 million (67%) since last year’s supplementary estimate.  This is steered by: 

• an increase in expenditure on the maritime decarbonisation programme known as UK SHORE. Grant expenditure on this multi-year programme is increasing by £101.9 million

• there is a £15.7 million increase in loan advances made to the General Lighthouse Fund in respect of funding for the replacement inspection vessel of the Northern Lighthouse board

• trust ports net borrowing requirement is only included in the supplementary estimate and not the main estimate. The net borrowing at supplementary estimate in 2023 to 2024 was £12.6 million – therefore, £12.6 million reduction from 2023 to 2024 to 2024 to 2025

22) MCA

Capital DEL spending is forecast to reduce by £17.6 million (45%) since last year’s supplementary estimate. This is steered by forecast costs for the full financial year as agreed in SR21 with the completion of the radio network infrastructure replacement programme.

23) Support for passenger rail services

Capital DEL is reducing by £98.7 million (100%) since last year’s supplementary estimate. This is due to funding for train operating companies (TOCs) allocated in resource DEL in the SR.

A small portion of the total subsidy funds TOCs’ capital costs, as in previous years, this funding will be reclassified to capital DEL at the supplementary estimate. This is a technical switch that has no impact on total spending.

24) Transport development fund

Capital DEL spending is forecast to reduce by £125.8 million (10%) since last year’s supplementary estimate. This is steered by the profile of some local authority transport programmes, for example, transforming city funds as the schemes are complete.

25) High-Speed Rail and HS2 Ltd

Net capital DEL spending for HS2 is forecast to reduce by £710 million (10%) since last year’s supplementary estimate. This reflects the latest profile of expenditure for HS2 from London to Birmingham.

26) Network Rail

Capital DEL spending is forecast to reduce by £318.8m (5%) since last year’s Supplementary Estimate. This is steered by the CP7 profile agreed upon as part of the PR23 process.

Resource AME

Table 7: breakdown by programmes within each resource AME estimate line compared with the 2023 to 2024 supplementary estimate

Subheads	Description	Resource AME main estimate 2024 to 2025 (£m)	Supplementary estimate 2023 to 2024 (£m)	Change from supplementary estimate (£m)	Change from supplementary estimate (%)	Note number
V	National Highways (net)	10.0	30.0	-20.0	-67%	27
W	Network Rail (net)	4,527.9	3,713.4	814.5	22%	28
X	Funding of other ALBs (net)	111.8	116.4	-4.6	-4%	N/A
Y	Other railways	223.2	639.6	-416.4	-65%	29
Z	Aviation, maritime, security and safety	9.1	-0.7	9.8	910%	N/A
AA	MCA	1.0	1.0	0.0	0%	N/A
AB	Motoring agencies	-2.4	-1.7	-0.7	41%	N/A
AC	Central administration	92.0	96.0	-4.0	-4%	N/A
AD	High Speed Rail	0.0	-0.7	0.7	-%
(previous AE)	HS2 Limited (net)	0.0	400.0	-400.0	-100%	30
AE	East West Rail Company Limited (net)	0.5	0.5	0.0	0%	N/A
AF	Funding of other ALBs (net)	-11.9	-17.7	5.8	33%	N/A
	Total voted and non-voted	4,961.1	4,976.0	-14.9	0%	N/A

Table notes

Differences of more than 10% and more than or less than £10 million are explained below. Numbers relate to the relevant row in the table above. Further details of spending within these totals are given in Annex A.

27) National Highways

Resource AME is forecast to reduce by £20 million (67%) since last year’s supplementary estimate.

This is steered by the initial setting of provisions, which will be reviewed in the supplementary estimate.

28) Network Rail

Resource AME is forecast to increase by £814.5 million (22%) since last year’s supplementary estimate.

This is steered by movements in derivate costs and finance costs, which are driven by economic variables.

29) Other railways

Resource AME is forecast to reduce by £416.4 million (65%) since last year’s supplementary estimate. This is steered by:

• one-off non-cash requirement of £368 million in 2023 to 2024 for movements relating to changes in market price, which is not anticipated to repeat in 2024 to 2025

• the remaining movement reflects changes in anticipated interest costs on index-linked debt for the year in LCR Finance plc and CTRL Section 1 Finance plc

30) HS2 Ltd

Resource AME is forecast to reduce by £400 million (100%) since last year’s supplementary estimate. This is steered by one-off non-cash requirement of £400 million in 2023 to 2024 for an expected increase in provisions following Phase 2 cancellation.

Capital AME

Table 8: breakdown by programmes within each capital AME estimate line compare with the 2023 to 2024 supplementary estimate

Subheads	Description	Capital AME main estimate 2024 to 2025 (£m)	Supplementary estimate 2023 to 2024 (£m)	Change from supplementary estimate (£m)	Change from supplementary estimate (%)	Note number
V	National Highways (net)	100.0	50.0	50.0	100%	31
Y	Other railways	0.0	0.0	0.0	0%	N/A
Z	Aviation, maritime, security and safety	-11.7	0.0	-11.7	-%	32
AD	High Speed Rail	-192.7	22.3	-215.1	100%	33
(previous AE)	HS2 Limited (net)	0.0	10.2	-10.2	100%	33
AE	East West Rail Company Limited (net)	3.0	0.5	2.5	500%	N/A
	Total voted and non-voted	-101.4	83.0	-184.4	-222%	N/A

Table notes

Differences of more than 10% and more than or less than £10 million are explained below. Numbers relate to the relevant row in the table above.

31) National Highways (net)

Capital AME is forecast to increase by £50 million (100%) since last year’s supplementary estimate reflecting anticipated movements in capital provisions during the year relating to National Highways’ infrastructure projects.

32) Aviation, maritime, security and safety

There is a capital AME forecast reduction of £11.7 million since last year’s supplementary estimate. This is due to the general lighthouse fund was not required to make a repayment on the long-standing pension loan provided by the department in 2023 to 2024.

This was implemented to assist their cashflow in purchasing replacement inspection vessels for the general lighthouse authorities. No such arrangement is in place for main estimate 2024 to 2025: therefore, the loan receipt due of £11.7 million.

33) High-Speed Rail and HS2 Ltd

Capital AME is forecast to reduce by £10.2 million since last year’s supplementary estimate reflecting anticipated movements in capital provisions during the year relating to the HS2 project.

Ring-fenced budgets

Table 9: Within the totals, the following elements are ring fenced: savings in these budgets cannot be used to fund pressures in other budgets

Spending	Total amounts sought this year (main estimate 2024 to 2025) £m	Compared to final budget last year (supplementary estimate 2023 to 2024) £m	Compared to final budget last year (supplementary estimate 2023 to 2024) %	Compared to original budget last year (main estimate 2023 to 2024) £m	Compared to original budget last year (main estimate 2023 to 2024) %
HS2 Limited (resource DEL)	11.30	-1,280.71	-99%	-7.30	-39%
HS2 Limited (capital DEL)	6,702.00	-709.99	-10%	+735.00	12%
High Speed Rail (capital DEL)	290.80	-111.73	-28%	-266.92	-48%
National Highways (capital DEL)	3,520.30	+99.55	+3%	-90.7	-3%
Depreciation (resource DEL)	10,468.52	-1,690.08	-14%	+359.90	+4%
Depreciation (resource AME )	343.35	-323.12	-48%	0.00	0%

Contingent liabilities

The statutory and non-statutory liabilities are generally in line with those in supplementary estimate 2023 to 2024.

Annexes A and B

Annexes A and B are available to download as an exel file.

Glossary of terms

Term	Definition
Accounts	A report of income and expenditure outturn for a particular year. Produced on an accruals basis, in line with the financial reporting manual (FReM).
Administration Budget	A Treasury control on resources consumed directly by departments and agencies/NDPBs that forms part of the DEL. Includes things such as staff costs, accommodation, etc, where they are not directly associated with frontline service delivery.
Ambit	The ambits are set out in part one of the departmental estimate. Separate ambits are required for both expenditure and income in each budgetary category included in the estimate (DEL, AME, and non-budget). The ambit describes the activities for which provision sought in the estimate will be used.
Annually managed expenditure (AME)	AME is spending included in total managed expenditure (TME), which does not fall within Departmental Expenditure Limits (DELs). Expenditure in AME is generally less predictable and controllable than expenditure in DEL.
Arm’s length body (ALB)	Also called a non-departmental public body (NDPB), a company where the department has a significant shareholding or other sponsored body. A body that has a role in the process of government but is not a government department or part of one (though NDPBs fall inside the budgetary, Estimates and accounting boundary of government departments). NDPBs operate, to a greater or lesser extent, at arm’s length from Ministers.
Budgetary control	How government plans and controls expenditure to meet its objectives.
Budget exchange	A mechanism that allows departments to surrender an underspend in advance of the end of the financial year in return for a corresponding increase in the following year, subject to Treasury agreement.
Capital grant	A grant is a payment made by a department, or other public body, to outside bodies to reimburse expenditure on agreed items or functions and is often paid only on statutory conditions being met. May be made for resource or for capital purposes. In accounts, a capital grant scores as resource spending but in budgetary terms it scores as capital because an asset is created within the economy.
Contingent liabilities	Potential liabilities that are uncertain but recognise that future expenditure may arise if certain conditions are met, or certain events happen.
Departmental expenditure limit (DEL)	A Treasury budgetary control. DEL spending forms part of TME and includes that expenditure that is generally within the departments’ control and can be managed with fixed multi-year limits. Some elements may be largely demand-led. There is a small DEL reserve where the Treasury may support unavoidable costs that cannot be absorbed within the existing limit.
Grant-in-aid	Financing payment made by a department to an NDPB or other arm’s length body.
Non-cash	Expenditure where there is no directly related cash transaction, but reflects resources used. Examples include depreciation and provisions.
Non-budget	Income and expenditure normally refers to income and expenditure that pass through a government department’s books and that are not included in DEL or departmental.
Net cash requirement (NCR)	The limit voted by Parliament reflecting the maximum amount of cash that can be released from the consolidated fund to a department in support of expenditure in its Estimate. In the case of a negative net cash requirement, the department must generate a surplus of at least that amount.
Provision	A liability that has arisen but where the timing and/or amount of the payment is uncertain.
Reserve	An amount within DEL not allocated to departmental programmes, which provides a margin to cover emergencies and genuinely unforeseen contingencies.
Spending review (SR)	A cross-government review of departmental aims and objectives and analysis of spending programmes. Results in the allocation of multi-year budgetary limits.
Supplementary estimate	How departments seek to amend parliamentary authority provided through main estimates by altering the limits on resources, capital and/or cash or varying the way in which provision is allocated. Normally presented in January or February each year.
Supply expenditure	Is expenditure that is voted by Parliament either in the annual Main Estimates (at the start of the year) or in supplementary estimates in-year.
Non-voted expenditure	Expenditure that is not voted by Parliament through the Supply procedure. It includes spending funded from various funds, such as the National Insurance fund.