Local Transport Today is the authoritative, independent journal for transport decision makers. Analysis, Comment & News on Transport Policy, Planning, Finance and Delivery since 1989.

Cash crisis for small schemes

29 April 2016

The Government’s decision to divert integrated transport block funding into the Local Growth Fund is hampering the delivery of low-cost transport projects, a council has said. 

The integrated transport block grant paid to highway authorities outside London supports a range of projects such as 20mph speed limit schemes, bus priority and other traffic management schemes, and cycle infrastructure improvements.

The Government, however, now diverts 44% of the grant into the unringfenced Local Growth Fund.  

“The limited level of funding available through the integrated transport budget has a serious impact on the council’s ability to undertake small-scale transport schemes,” said Paul Dowling, Gateshead’s group director, communities and environment. 

He said Gateshead’s integrated transport settlement in 2016/17 was expected to be £1,280,916. 

“As with the settlement in 2015/16, a further consequence locally in this reallocation of funding nationally is that Gateshead and the other Tyne and Wear authorities will not receive a public transport allocation through Nexus. In 2014/15 Gateshead received £383,000 of public transport funding in addition to the standard local transport plan allocation.” 

Gateshead’s total anticipated funding for local transport plan schemes in 2016/17 is actually £3.3m, with £1.7m carried over from 2015/16 (including integrated transport block and Cycle City funding), and £300,000 of prudential borrowing. 

Discuss these issues at LTT's Cycle City event in May

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