The Parliamentary Under-Secretary of State for Transport (Norman Baker): Further to my statement to the House of 23 January 2013 I am today confirming to local transport bodies (LTBs) the funding allocations for local major transport projects from 2015. These are set out below and reflect decisions taken by Ministers in DFT and the Treasury.
The funding that the Government is allocating today is only one element of over £12 billion being made available to local enterprise partnership (LEP) areas between 2015-16 and 2020-21 through the single local growth fund, details of which were announced in a statement by the Chief Secretary to the Treasury on 27 June 2013.
Later this month, local transport bodies are expected to publish details of their prioritised schemes to be taken forward from 2015.
We would expect that those LEP areas that make a good case for further transport investment through their strategic economic plans will receive additional funding from the competitive elements of the local growth fund. Decisions on that will be made following growth deal negotiations with the Government.
In order to maximise the competitive funding available to LEPs for transport and other projects and programmes within the local growth fund, most LTBs receive confirmed allocations for four years at a level one third below the indicative numbers provided in January 2013. This is within the range of scenarios that the Department asked LTBs to consider at that stage.
Those LTBs/LEPs where the principle of 10-year funding has been agreed through city deals receive confirmed allocations for six years at the annual level indicated in January 2013. They also receive an indicative funding allocation for a further four years beyond the confirmed funding levels. This recognises that these LTBs are expected to be further ahead than others in strengthening their local decision-making arrangements and the previous consideration of transport needs alongside other priorities in city deal discussions.
In addition to the funding allocations announced today, the funding for existing DFT-approved local authority major schemes will also flow nominally through the local growth fund and we will need to ensure that any delay to these projects does not impact on the total funding available to LEPs on a competitive basis. We will confirm the detailed mechanisms for how this will work at a later date but the key principle is that this element of the funding is dependent on the schemes going ahead as planned.