Over £2bn allocated in local transport grants

23/06/2025 | GEORGE BARKER

Over £2bn allocated in local transport grants

The Department for Transport has revealed Local Transport Grant (LTG) capital funding allocations, covering £2.3bn of both capital and resource funding over a four-year period (2026-2030).

The money is for areas that are ineligible for City Region Sustainable Transport Settlements (CRSTS).

The LTG brings together both the Integrated Transport Block and Local Transport Grant, which the DfT says simplifies and consolidates the funding and will ‘enable local authorities to deliver more ambitious transport projects'.

The 10 local transport authorities that received the highest amount of funding are:

  • Lancashire Combined County Authority: £215.024m
  • Greater Lincolnshire Combined County Authority : £155.103m
  • Hull & East Yorkshire Combined Authority: £96.509m
  • York and North Yorkshire Combined Authority: £93.993m
  • Staffordshire: £92.979m
  • Leicestershire: £73.941m
  • Worcestershire: £66.989m
  • Warwickshire: £66.312m
  • Leicester: £58.999m
  • Kent: £52.13m

The DfT has confirmed the £2.1bn funding settlement, first announced at the Spending Review, for Transport for London (TfL) in a letter to Mayor of London Sir Sadiq Khan.

The letter stated that the settlement will provide TfL with ‘the long-term funding certainty to deliver its capital programme’ from 2026/27 to 2029/30, but adds that the settlement ‘also reflects TfL’s share of access to other transport funds’, meaning that the Government will provide no additional funding should it be required.

The cash comes with the expectation that TfL will continue to show ‘financial prudence’ and generate additional revenue ‘wherever appropriate’, with the funding earmarked for use towards TfL's ‘current planned pipeline’.

The full TfL transport settlement letter can be found here, with full details of all LTG allocations available here.

Image credit: Shutterstock @Pandora Pictures

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