£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

Highways Technical Assistant

£29,064 - £31,537
Are you looking for a varied role in a dynamic and innovative team environment that can make a real difference to North Yorkshire’s highways? Leeming Bar, Northallerton
Recruiter: North Yorkshire Council

Street Lighting Electrical Inspector

£34,434 - £38,220 per annum
Do you hold an ONC in electrical engineering or City & Guilds Electrician? Northallerton, North Yorkshire
Recruiter: North Yorkshire Council

Senior bridge Engineer - WMF2212e

£47,181 - £48,226
You will be the key responsible engineer for this area and will also provide technical advice and guidance to our team Cumbria / Various
Recruiter: Westmorland and Furness Council

Civil Enforcement Officer - WMF2221e

£28,598 - £29,540
Are you seeking an active and challenging role, part of a friendly and welcoming team? Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Bridge Engineer - WMF2219e

£42,839 - £44,075
We are currently seeking to recruit an experienced and enthusiastic Bridge Engineer Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Senior Public Transport Officer

£42,839 - £46,142
We are looking for an experienced public transport professional to become our Senior Public Transport Officer. Northamptonshire
Recruiter: North Northamptonshire Council

Principal Transport Planner (Strategy) (Fixed-Term)

£48,226-£51,356
We are looking for an experienced professional to join as a Principal Transport Planner (Strategy) Northampton, Northamptonshire
Recruiter: North Northamptonshire Council

Mobile Street Scene Operative

£24,796 to £25,989 per annum
The Waste and Street Scene department requires enthusiastic and committed mobile street cleansing operative. Northallerton, North Yorkshire
Recruiter: North Yorkshire Council

Senior Technician - Highways Design (2 Posts)

Grade 10 £35,422 - 38,730 per annum
An exciting opportunity has arisen within the Professional Services Section Derbyshire
Recruiter: Derbyshire County Council

Project Engineer External Contracts

Grade 11 £39,865 - 43,270 per annum
You will lead a team of Clerks of Works Derbyshire
Recruiter: Derbyshire County Council

Senior Technician - Clerk of Works

Grade 9 £32,347 - 34,317 per annum
You will supervise works on site and liaise with developers, contractors and internal teams Derbyshire
Recruiter: Derbyshire County Council

Hire Desk Operative

Grade 8 £29,719 - £31,691 per annum
Well-developed IT skills and an excellent working knowledge of the Microsoft Suite are required. Derbyshire
Recruiter: Derbyshire County Council

Roadworker Trainee LGV Driver (2 Posts)

Grade 6 £25,989 - £26,458 per annum
We’re looking for Roadworker/trainee LGV drivers Derbyshire
Recruiter: Derbyshire County Council

Roadworker/Driver (3 Posts)

Grade 7 £27,088 - £29,062 per annum
We’re looking for roadworker/drivers to be part of our team undertaking major highway, bridge Derbyshire
Recruiter: Derbyshire County Council

Senior Engineer - Public Realm

£28,624 - £36,124
We are looking for a Senior Engineer to support the development Huddersfield, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Engineer - Hosting and Security

£35,412 to £39,152 p.a. (Grade 9)
A vacancy has arisen within our Hosting and Security Team for an experienced, enthusiastic, and flexible Engineer, with the aim of helping to ensure t Durham
Recruiter: Durham County Council

Senior Engineer - Highways Safety

£28,624 - £36,124
Senior Engineer - Highways Safety Huddersfield, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Head of Parking

£86,274 - £89,667
Our borough is beginning a huge transformation. Redbridge, London (Greater)
Recruiter: Redbridge London Borough Council

Assistant Director Transport and Infrastructure

£115,958 - £120,407
Dumfries and Galloway Council is ambitious for our region. Dumfries and Galloway
Recruiter: Dumfries & Galloway Council

Professional Services Partnering Manager

Grade 13 £49,178 - £52,937 per annum
Shape the Future of Highways
Recruiter: Derbyshire County Council
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