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C Council transport capital funding announced by DfT


ouncils have now got confirmation from the Government of their capital block funding for the next two financial years, and indicative funding until 2015.


The DfT has slashed the previous 26 grant funding streams to four: A local sustainable transport fund (capital and resource); Major schemes (capital); Block funding for highways maintenance (capital); and block funding for small transport improvement schemes (capital).


Other specific grants are being scrapped and funding incorporated into the local formula grant, administered by the Department for Communities and Local Government.


Nick Bisson, director of regional and local transport policy at the DfT, said in a letter to


councils: “The Government is committed to reducing the deficit, facilitating long-term, sustainable growth and tackling carbon emissions, while ending the era of top-down government by providing a radical devolution of power and greater financial autonomy to local authorities.”


The highways maintenance block funding will total £3bn over the next four years, with a fund of £3m also available to help councils learn best practice in combining purchasing power and other efficiency measures.


The integrated transport block funding will provide £1.3bn over four years for small transport


84 | rail technology magazine Dec/Jan 11 improvements.


The Government is also establishing a ‘sustainable transport fund’, worth £560m over the funding period, for councils outside London with innovative interventions that boost business, cut carbon emissions and improve air quality.


Mr Bisson said: “This replaces a range of previous grants for sustainable forms of travel and represents a significant increase in funding for sustainable travel, which the Government believes can both support economic growth and reduce carbon emissions.”


The fund appears to replace previous initiatives, such as the much larger Transport Innovation Fund (TIF) and its replacement announced by the last Government, the Urban Challenge Fund. The


TIF had at its heart public transport cash in return for councils implementing demand-management measures, including congestion charging. This put off many councils from applying due to the political fallout, especially after Manchester voters rejected TIF- linked congestion charging in a referendum in 2008.


There will also be a £1.5bn fund for ‘major projects’ - £600m for committed schemes and £900m for new schemes.


Mr Bisson’s letter said: “We will also be looking to develop successor arrangements to the previous Government’s Regional Funding Allocations for transport that, over time, give a voice in scheme prioritisation to elected local authorities and business interests. We hope that Local Enterprise Partnerships will have an important role in this.”


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