The Department for Transport (DfT) has distanced itself from another of the previous Government’s ‘Network North’ promises – a pledge of £4.7bn for north and midlands councils.
Last February, the Tories announced a total of £4.7bn between 2025 and 2032 under the Local Transport Fund (LTF), with named authorities promised specific sums in addition to their Integrated Transport Block (ITB) allocations.
Since Labour came to power, the DfT has not confirmed either LTF or ITB levels for 2025-26, although the Autumn Budget pledged £650m for local transport outside city regions, including funding for (residual) transport-related Levelling Up Fund projects.
The DfT stated that allocations for individual funding lines will be agreed as part of the regular departmental business planning process and will be set out ‘in due course’.
Asked to confirm whether LTF funding levels set out on a DfT webpage remained accurate, the department told Highways that although the figures were accurate at the time of publication they are now under review as part of the Spending Review and the chancellor's capital spend review.
The news follows a similar statement from a top DfT official last year that councils can no longer expect a further £8bn highway maintenance funding over the next nine years under Network North.
ITB announcement 'soon'
Sources have told Highways that an announcement on ITB will be made soon, but it remains to be seen whether existing levels will be maintained. Since 2023-23, English councils outside City Region Sustainable Transport Settlements (CRSTS) have received a total of £170m annually.
ITB is allocated for small transport improvement projects such as road safety schemes, bus priority schemes, walking and cycling schemes and transport information schemes.
The funding is not ring-fenced and has previously been announced alongside capital funding for highways maintenance.
After ITB allocations, transport-related Levelling Up Fund allocations – potentially £150m – the £650m pledged in the Budget will not allow much for the LTF and certainly not a one-seventh share of the £4.7bn pledged by the previous government.
Local government sources have told Highways that they need urgent confirmation of transport funding for 2025-26.
County Durham, whose ITB is paid through CRSTS, is due to receive ‘the equivalent of’ £72.8m from LTF cash over the next two years. From 2027-28 onwards, it will receive transport funding through the North East Mayoral Combined Authority’s CRSTS allocation.
In November, council leader Amanda Hopgood called for clarity over the cash, warning that ‘every day that passes without that is time wasted’.
This week, Mark Jackson, the highway authority’s head of transport and contract services, told Highways that it continues to work with the DfT for clarity.
He said: ‘These schemes will play a major role in helping people to access jobs, education and services across the county, as well as unlocking active travel opportunities that will allow residents to lead healthier lives.
‘They will not only boost the county’s economy but also that of the wider region and we hope to receive an update imminently that will allow us to progress.’
Following the DfT announcement last February, Henri Murison, chief executive of the Northern Powerhouse Partnership warned that with work not started on the sections of HS2 whose cancellation was said to fund Network North, 'there is actually no more capital to spend anytime soon'.
He added: ‘Unless they delay again the long promised new hospitals or school rebuilding projects the [Tory] Government is making promises based on sums which don’t add up.’
