£1.6 billion investment in local transport

Today's announcement clearly demonstrates the Government's continuing commitment to investing in local transport.

This year's £1.6 billion funding will enable councils around the country to continue to invest in the transport schemes needed to support their growing economies. It will help to make our local roads better and safer and public transport a more attractive and reliable alternative to the car.

Over the last five years we have:

Invested over £8 billion to deliver local transport improvements across the country. This includes over £2.5 billion to improve the state of local roads, halting decades of under investment in local roads.

Delivered over 150,000 smaller scale projects to improve local transport with more to come.

Fulfilled our promises in each year of the five year indicative integrated transport block allocations.

This year's settlement includes:

• Approval of 3 new major public transport schemes.
• Approval of 3 new major local road improvements.
• Approval of 2 new major road maintenance schemes.
• Final approval of 7 existing major local transport schemes.
• £660m for highway maintenance to improve local road condition.
• £552m for new local integrated transport schemes.
• £407m for major schemes.

Watford Junction station - a package of enhancements to Watford Junction rail station (£12m).

Red Routes for the West Midlands - the first red routes scheme in the West Midlands conurbation (£28m).

Castleford Integrated Transport Scheme - package of integrated transport improvements in a key regeneration area (£14.5m).

New approved local road schemes:

Edge Lane West - a scheme to improve the Eastern gateway to Liverpool, linked to Capital of Culture plans and a key regeneration area (£15m).

Sittingbourne Northern Distributor Route - a new road to improve access to Sittingbourne. It will support the growth of housing and jobs in the Thames Gateway area (£39m).

Bexhill to Hastings Link Road - a new link road which is a crucial component of the regeneration plan for Hastings (£47m).

New approved maintenance projects:

Copnor Road Bridge - the urgent replacement of a bridge on a key access route for Portsmouth (£9m).

Derby Inner Ring Road Maintenance - crucial maintenance works in Derby (£11m).

Major local transport schemes given final approval:

• South Lowestoft Relief Road - £30m.
• Stoke Hammond and Linslade Bypass in Buckinghamshire - £41.5m.
• North West Taunton Package - £11.5m
• Primelines Quality Bus Network in Coventry - £28m.
• Wolverhampton Centre Access and Interchange - £13m.
• Barford Bypass in Warwickshire - £10m.
• Northfield Regeneration Route in Birmingham - £19m

"The £1.6 billion announced today means that local authorities across the country can continue to invest in improvements to their local transport systems. This year's funding will benefit all forms of local transport, from improvements in the condition of local roads through to better buses and safer streets.

" With over £8 billion pounds invested in improving local transport over the last five years, the Government's determination to deliver better local transport is clear".

The Department has set out the system by which it will select new Centres of Excellence that recognise the success of highest performing authorities.

Local authorities are also being informed today of their Rural Bus Subsidy Grant allocations for 2005/06. The total for England is £53million an increase of 3.9% on the current year.

Notes to editors

1. Newly approved schemes. The Red Routes and Derby Inner Ring Road schemes have been given final approval and can start procurement immediately. The other new major local transport schemes have been given provisional approval.

2. Implementation of all infrastructure schemes included in the announcement is subject to the successful completion of all necessary consultation and statutory procedures (where this has not already been achieved). A provisionally approved scheme is one where the Government has agreed to support the scheme, subject to certain conditions. This includes schemes where a statutory approval which is essential to the scheme is still required, or where the success of the scheme is dependent on a contribution from a third party.

3. In 2000, local authorities in England (outside London) were given indicative funding allocations for five years. Today’s announcement means we have provided a minimum of these allocations in each year of the five years. The £407m for major schemes includes £240m for schemes already underway and £167m for schemes which we expect to start in 2005/6.

4. Local Transport Plans (LTPs), which were submitted in 2000 by all English local transport authorities outside London, contained an integrated transport strategy for their area and a costed programme of measures to improve local transport over the period 2001-02 to 2005-06 through: integrated transport schemes (e.g. measures to improve local transport and reduce congestion, promote cycling, walking and road safety); local road maintenance and bridge strengthening schemes; and major public transport and road schemes costing over £5 million (e.g. integrated town centre improvements, new bus corridors, light rail and local road schemes).

5. Authorities in England submitted a total of 46 bids for major schemes to be considered as part of this year's settlement.

6. All major schemes are appraised in accordance with the Government's New Approach to Appraisal (NATA), under which the scheme is assessed against the Government's five criteria of safety, environment, accessibility, economy and integration. As part of the process local authorities are required to consult the Government's statutory advisers (Environment Agency, English Nature, Countryside Agency, English Heritage). In addition, DfT has separately consulted the statutory bodies on all the major schemes. Local authorities will continue to liaise with statutory bodies throughout the further detailed design stages of their major schemes.

7. Funding for small schemes and maintenance will be allocated as part of transport’s contribution to the cross-service Single Capital Pot. Authorities will be able to spend it in accordance with their local priorities and the objectives and strategies contained in their LTPs.

8. Full details of individual Local Authority LTP allocations throughout England will shortly be posted on the DfT website A table showing Local Authority Allocation from this years settlements is attached

9. Rural Bus Subsidy Grant: This targeted grant to English local authorities to support conventional rural bus services was introduced in 1998 and is administered by DfT. Latest monitoring reports indicate that over 2200 new and enhanced services have been funded in England by means RBSG with almost 29 million passenger journeys being made on these services in 2003/04. RBSG is distributed in accordance with the rural population; based on the number of resident living outside settlements of 3000 or more. Last year, for the first time, this allocation was based on 2001 census data. Previously allocations were based on 1991 census data. The total RBSG allocation for England in 2005-06 is £53 million. This represents a 3.9% increase and all authorities will receive this level of increase. Provisional allocations (to be confirmed) for the following two years are £54.3 million (2006-07) and £55.6 million (2007-08).