Government announces plans for new transport fund

Plans for a new Local Sustainable Transport Fund have been announced by Lib Dem Local Transport minister Norman Baker. It will challenge local transport authorities outside London to develop packages of measures that support economic growth and reduce carbon in their communities as well as delivering cleaner environments, improved safety and increased levels of physical activity.

Measures could include encouraging walking and cycling, initiatives to improve integration between travel modes and end-to-end journey experiences, better public transport and improved traffic management schemes.

The Government also announced that, in line with its localism agenda, it intends to pool the centrally funded local transport grants to create fewer but larger funding streams which are largely formula based. Local Transport Minister Norman Baker said:

"It is at a local level that most can be done to change patterns of behaviour and encourage more sustainable travel, especially for short journeys. And in an environment of tighter budgets and greater local flexibility, the Government is determined to reduce bureaucracy and make local transport funding more efficient.

"That is why we intend to pool the myriad of centrally funded local transport grants, to create fewer but larger funding streams, largely formula based, and a new Local Sustainable Transport Fund."

It will be for local partnerships - local transport authorities working with their communities - to identify the right solutions for their areas which are financially robust and sustainable in the long term.

Funding for the Local Sustainable Transport Fund will be set aside from within the Department's overall funding allocation following conclusion of the Spending Review. Details about the new Fund, including the resources available and how it will operate, will be announced later in the year.