DfT faces 40% cut - at same time as delivering infrastructure "vital to growth"

The DfT is in line for a 40% cut in its budget within four years - something the Treasury says can be achieved whilst prioritising transport investment that "drives growth".

The demand came as the Treasury formally started its Spending Review 2015 process, in which the Conservatives will seek to deliver a budget surplus by 2019/20 by cutting annual departmental expenditure by £20bn within four years. The Chancellor acknowledges that these are "big savings" but points to how Whitehall costs were cut by 40% in the last Parliament whilst satisfaction with public services improved.

The DfT and other non-protected departments have therefore been tasked with modelling savings of both 25% and 40% by September, in time for cabinet decisions on how the cuts will be shared out in time for the Chancellor unveiling the final Spending Review on the 25th November.

The review will include a "full review" of capital spending plans to ensure "the areas of spending that achieve the best returns" are supported and further devolution in England, with the Chancellor open to placing further Whitehall funds into the Local Growth Fund. City regions have until early September to submit devolution proposals. The Treasury document states devolution in England has "only just started".