Written statement to Parliament

Local transport capital blocks settlement

This speech was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Local authorities in England capital settlements for transport.

Following the spending review on 20 October 2010, which included the England-wide totals for future transport grants, I have today (13 December 2010) placed in the libraries of the House details of the local transport capital settlement for individual local authorities in England.

This includes over £3 billion over the next 4 years for local highways maintenance. With limited resources available, it is essential that highways maintenance continues to be prioritised, reflecting the economic and social importance to local communities, the need to safeguard the largest single local public asset and the liabilities for future years that can be created from short-term cuts in maintenance.

The department is also providing over £1.3 billion for small transport improvement schemes, reflecting the contribution these schemes make to improving road safety, stimulating local economies by reducing congestion, and delivering social justice to local communities.

Funding allocations are calculated according to needs-based formulae that are developed with local authorities. The funding is not ring-fenced, and local authorities are free to spend their allocations in accordance with their priorities. All funding will be supplied as capital grant, and not as supported borrowing. The figures provided include final allocations for 2011/12 to 2012/13, and indicative allocations for 2013/14 to 2014/15.

This announcement follows a recent consultation on local transport capital funding. A summary of responses and the department’s proposed next steps are available on the department’s website and have been placed in the libraries of the House.

The department is separately setting aside £560 million over the 4 year period to 2014/15 for the Local Sustainable Transport Fund. I am announcing today in a separate statement to the House plans for publishing guidance on the operation of this fund.