£4.7bn Local Transport Fund ‘under review’, DfT says

28/01/2025 | CHRIS AMES

£4.7bn Local Transport Fund ‘under review’, DfT says

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.’

Highways InProfile

latest magazine issue
Highways jobs

Electrical Design Engineer

Grade 9 £34,314 to £37,938 - Grade 10 £37,035 to £40,476 - Grade 11 £39,513 to £43,693 - Grade 12 £42,708 to £46,731 p.a.
The Construction Consultancy Services (CCS) team provide client-side construction consultancy services across a range of professional disciplines to d Durham
Recruiter: Durham County Council

Park Operations Assistant - Thorndon Country Park

Up to £12540.50 per annum
This is a permanent, part time position on an annualised hours contract. This means you will be contracted to work a minimum of 964.59 hours per yea England, Essex, Brentwood
Recruiter: Essex County Council

Principal Transport Planner (Strategy)

£46,731-£49,764
We are looking for an experienced professional to join North Northamptonshire Council as a Principal Transport Planner (Strategy). Sheerness House, 41 Meadow Road, Kettering moving to Haylock House, Kettering Parkway, Kettering NN15 6EY, United Kingdom
Recruiter: North Northamptonshire Council

Highways Capital Delivery Manager

£50,788 - £52,805
To be responsible for the implementation of Welsh Government’s Renewal and Upgrade programme. Baglan, Port Talbot
Recruiter: South Wales Trunk Road Agent

Senior Engineer x 2

£47,532 –£55,620 per annum
Our people are deeply committed to providing excellent services to our residents, doing all we can to make lives as good as they can be. Hounslow (City/Town), London (Greater)
Recruiter: Hounslow London Borough Council

Senior Highways Engineer

£50,754 – £53,607 per annum
Our people are deeply committed to providing excellent services to our residents, doing all we can to make lives as good as they can be. Hounslow (City/Town), London (Greater)
Recruiter: Hounslow London Borough Council

Highways Capital Lead

£47,754 - £50,788
To be responsible for management of the Regional Highway Capital Delivery Teams South Wales
Recruiter: South Wales Trunk Road Agent

Senior Development Management Engineer

£37,938 - £44,711
In line with our One Coventry Values, we want to ensure that our communities are represented across our workforce Coventry, West Midlands
Recruiter: Coventry City Council

Head of Highways

£66,366 - £85,284 pa
Highway Operations is a large division within the Planning, Growth & Infrastructure. Enfield (City/Town), London (Greater)
Recruiter: Enfield London Borough Council

Circular Economy Officer - FTC till the 31st March 26

£26526.00 - £31208.00 per annum + + 26 Days Leave & Local Gov Pension
... England, Essex, Chelmsford
Recruiter: Essex County Council

Director Highways, Transport & Waste Management

up to £120k
There for Nottinghamshire. There for each other. There for you. Nottinghamshire
Recruiter: Nottinghamshire County Council

Director of Highways and Transportation

£126,909
We’re seeking a dynamic and innovative leader to spearhead our Highways and Transportation services. Essex
Recruiter: Essex County Council

Senior Structures Technician

£32,654 - £36,124 plus circa £2000 - £4000 OT (variable
To lead on the planning, delivery and reporting of the highway structures General Inspection programme. Baglan, Port Talbot
Recruiter: South Wales Trunk Road Agent

Assistant Director of Place Operations

£85,962 to £93,267
Bury is a proud and prosperous borough Bury, Greater Manchester
Recruiter: Bury Council

Career Grade Transport Planner (Carer Grade 6-8)

Grade 06 (£29,093 - £32,654) TO Grade 08 (£37,938 - £41,511)
This is a fantastic opportunity to work for a forward thinking and dynamic transport authority located in the heart of the North West Warrington, Cheshire
Recruiter: Warrington Borough Council

Principal Performance and Assurance Manager

£Competitive
We have an exciting opportunity for a highly motivated Principal Performance and Assurance Manager to join our Senior Management Team SBIM Avonmouth, Bristol
Recruiter: Amey

Principal Construction Manager

£Competitive
We are excited to offer a fantastic opportunity for a Permanent Principal Construction Manager to join our dynamic Area 12 West Yorkshire
Recruiter: Amey

Electrician

£Competitive
We are excited to offer a fantastic opportunity for two Permanent Electricians Tingley, Wakefield
Recruiter: Amey

Principal Engineer – Structures Capital Delivery

£43,693 - £47,754
To act as one of the Agent's technical experts for highway structures schemes and related issues South Wales
Recruiter: South Wales Trunk Road Agent

Senior Engineer Programme Management

£36,124 - £39,513
To support the Principal Engineer ensuring effective co-ordination, programming and contract administration. South Wales
Recruiter: South Wales Trunk Road Agent
SUBSCRIBE NOW

Latest Video

Subscribe to Highways today to ensure you keep your finger on the pulse of everything happening in the UK road network throughout the year.

SUBSCRIBE NOW