The chancellor Alistair Darling stressed that the government only borrows to invest.
But borrowings will rise to £43 billion in 2008 – 2.9% of national income.
As a result, spending on transport will be 90% higher than in 1990.
This, he said, represents an “exceptional commitment to improve public services”.
In addition, the £30 billion of public service cost savings, which were announced by every government department, will be reinvested back into services
Therefore, public spending will rise 2.2% over next three years, he promised.