I hope it goes ahead. Looking increasingly difficult though as the Government are looking to cut transport spending by another 10% in 2015 its reported today, in order to hold spending on health and foreign aid, and lessen cuts to the military.
Yes I note Transport isn't one of the departments who have "settled" with the Treasury.
The cuts are in revenue (opex) not capital (capex).
This means things like headcount, buildings and maintenance, and for DfT rail franchise subsidy/premiums.
Capital projects like infrastructure are not directly affected and might even gain something (but only if "shovel ready" which rail projects rarely are).
The NR/CP5 settlement is tied in to the HLOS/SoFA which is largely now fixed 2014-19, bar the odd £2billion ORR want NR to save (which is their share of the pain).
This leaves the TOC (franchise) performance which is where the trouble lies, as the balance is an Opex item for DfT.
Many of the franchise agreements (not all) are already underperforming and in revenue support.
It makes it all the harder to conclude generous deals for the renewing franchises (eg more stock for Northern means higher subsidy etc).
It's also why ICEC has to be refranchised quickly - DfT want the increased premiums.