Spending Review: extra cash for rail upgrades and "rabbit out of hat" infrastructure predicted

The Chancellor is today in his Comprehensive Spending Review expected to announce "rabbit out of the hat" infrastructure projects and extra cash for railway upgrades hit by cost-underestimates.

The national media has set out its predictions for the Spending Review, in which George Osborne has said he will make cuts to non-protected departmental spending of £23.7bn by the end of the Parliament. The DfT's entire annual budget - mainly capital - is currently £8.6bn. He is also committed to increasing capital spending by 2019/20, by £4.5bn. 

The FT believes that "announcements of big infrastructure projects are likely," whilst The Guardian predicts that Osborne will find some extra money for Network Rail's troubled £38bn investment programme. The BBC says that deflation gives him some wriggle-room on revenue spending, and in addition The Telegraph says councils will get some: with the green-light for council tax rises of 2%, but only to pay for under-pressure social services.

With the DfT and three other departments agreeing to an average 30% cut - compared to the 18% cut the Institute for Fiscal Studies expected to be made to non-protected expenditure as a whole - fears remain for so-called "every-day transport," buses, local roads, and cycling.