§ Mr. Roger King
asked the Secretary of State for Transport if he has set a cash ceiling on the central Government public service obligation grant to British Rail for 1985–86.
§ Mr. Ridley
The cash ceiling for the financial year 1985–86 will be £820 million. This is 10 per cent. less in 429W constant prices—£42 million less in cash—than the ceiling for 1984. The figure reflects the progress which the board is making towards its PSO grant target.
The board will now submit a grant claim for 1985–86. The amount of grant actually paid will be settled, within the cash ceiling, in the light of that claim.