HC Deb 17 July 1987 vol 119 c671W
Mr. Squire

asked the Secretary of State for Transport if he will make a statement on the British Railways Board PSO cash ceiling for 1987–88.

Mr. David Mitchell

For 1987–88, the cash ceiling on PSO grant (which, for this year, still includes the inter-city sector) will be £809 million. It allows for increased expenditure on investment to improve quality and for additional expenditure to improve efficiency which will yield productivity savings in future years. It also includes a technical change in the method of funding investment in the grant-aided railway which will have the effect of reducing the board's borrowing requirement.

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