HC Deb 19 January 1983 vol 35 cc157-8W
33. Mr. Chapman

asked the Secretary of State for Transport what is the current total annual subsidy paid by Her Majesty's Government to public transport in London.

Mr. Eyre

Leaving aside the £100 million cost of clearing up the "Fares Fair" deficit, total subsidy to London Transport in 1982–83 amounts to some £290 million—36 per cent. of its total costs. Central Government are paying the GLC £181 million in transport supplementary grant and the GLC is using £120 million of this to help support London Transport—over 40 per cent. of the total support. Central Government are contributing further through rate support grant, fuel duty rebate for buses, new bus grant and grants towards research. The GLC allegation in its recent press advertisements, that central Government contribute only 3 per cent. of London Transport's costs is simply one of the pieces of misinformation they are using ratepayers' money to deploy in their current campaign.

Under the Government's proposals, subsidy to London Transport in 1983–84 will increase to some £350 million, covering 40 per cent. of total costs. The GLC has been allocated £200 million through transport supplementary grant. How much of this they use to support London Transport is for it to decide.

London travellers also benefit from over £250 million annual support to BR London and south east services covering 35 per cent. of BR's total costs.