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Budget: Extra funds for councils to tackle jams while free schools expansion goes ahead

Lee Baker
08 March 2017

The Chancellor Philip Hammond has announced additional funding for local transport networks focused on tackling urban congestion.

Local authorities will compete for the £690m fund to "get local transport networks moving again," which the DfT will set out the details for. The funding comes from the National Productivity Investment Fund announced last autumn. Hammond said that local areas know best how to raise economic productivity, and said this is also why he had agreed to devolve more powers to the Mayor of London and the 'Midlands Engine' strategy will be published tomorrow.

The Chancellor also announced: an extra £2bn for social care over three years, an area councils have argued has put pressure on local authority revenue budgets;  funding for 110 new free schools; and, as predicted, announced that free school transport will be extended to all pupils on free school meals at a grammar school.

On tax, he did not announce measures to discourage diesel cars, but did freeze vehicle excise duty and the road user levy for heavy goods vehicles to 2020/21 at a cost of £50m.

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