£104m Local Transport Grant allocations announced

02/09/2025 | GEORGE BARKER

£104m Local Transport Grant allocations announced

The Department for Transport (DfT) has announced £104m in resource funding allocations via the Local Transport Grant (LTG) covering three financial years between 2026 and 2029.

The LTG provides support for transport in areas outside major cities that are ineligible for City Region Sustainable Transport Settlements (CRSTS). 

This new funding is to help build authorities’ 'capability and capacity' DfT said including:

  • developing and updating local transport plans
  • to effectively deliver local transport infrastructure priorities - working with regional partners.

However, it added that the cash 'should not be used to subsidise the day-to-day delivery of transport services'.

'Funding guidance will be issued in due course to support local areas in deciding how to best utilise their LTG allocations,' the DfT said.

The 10 authorities that received the most funding are:

  1. Lancashire Combined County Authority: £7.588m
  2. Greater Lincolnshire Combined County Authority: £5.585m
  3. York and North Yorkshire Combined Authority: £3.471m
  4. Hull and East Yorkshire Combined Authority: £3.444m
  5. Staffordshire: £3.391m
  6. Kent: £3.379m
  7. Essex: £3.241m
  8. Hampshire: £3.04m
  9. Leicestershire: £2.736m
  10. Surrey: £2.666m

Previously, the DfT announced capital funding allocations for local authorities via the LTG in June of this year.

Transport secretary, Heidi Alexander, said: ‘This investment will help councils to improve transport for local people – from cleaner buses to safer cycling routes – connecting communities with jobs, education and essential services.

‘By putting resources directly into the hands of local leaders, we’re ensuring every part of the country benefits from better transport links that support economic growth and provide opportunity.’

Jane Gratton, deputy director of public policy for the British Chambers of Commerce, added: ‘This is much-needed funding to help people access jobs and services across England. It will also better connect businesses, customers, and suppliers.’

Ben Plowden, chief executive for Campaign for Better Transport, said: ‘With 70% of trips under five miles, properly resourced local authorities are central to the task of improving sustainable travel choices. Confirmation of this investment to help them plan and deliver schemes will be very welcome in towns and rural areas, where difficult journeys can cut people off from jobs, services and connections with others.'

Full details of all allocations awarded in this announcement can be found here.

Image credit: Mark D Bailey / Shutterstock.com

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