The Labour government has cancelled a £20m fund for highway authorities to deploy advanced technology for traffic control, which councils had already bid for.
The Department for Transport (DfT) has written to English local authority chief executives to inform them that the previous Government’s plan for an Intelligent Traffic Management Fund (ITMF) has been shelved.
The letter from DfT deputy director Anthony Ferguson states: ‘The Government inherited a very difficult financial position [and] in response to this, a public spending savings exercise was undertaken, and following that review, the decision has been taken to cancel the £20m ITMF.’
Mr Ferguson said he realised this will be disappointing news and the DfT was ‘pleased by the way the sector responded to the opportunity’.
The ITMF is part of £70m of government funding for improvements to traffic signals announced in autumn 2023 under three separate challenge processes.
It was intended to provide cash for English highway authorities to deploy advanced technology, including using emerging technologies such as machine learning and artificial intelligence to optimise traffic flow and balance traffic across wider areas.
Cash from the other two funds, the traffic Signal Obsolescence Grant (TSOG) and the Green Light Fund (GLF), has already been allocated.
Mr Ferguson said the DfT will continue to work with the road transport sector to explore ways to harness the opportunities that new technology could offer in terms of network management.
He pledged to ‘continue to monitor closely’ how the £50m of TSOG and GLF funding is spent and the outcomes it delivers.
Max Sugarman, chief executive of Intelligent Transport Systems UK, described the move as 'a hugely missed opportunity' and strongly urged ministers to reconsider.
He said: 'Local authorities and suppliers were gearing up to use the Fund to deliver the latest technology onto the network, such as machine learning and artificial intelligence, that would help optimise traffic flows, reduce congestion and, ultimately, support more effective, safer and greener roads for the travelling public.
'The ITMF was directly aligned with the Department for Transport’s six priorities and the chancellor’s aims to deliver public services more efficiently, as set out in the Budget.
'So this cancellation is not only a blow to the traffic technology sector and ITS UK’s membership, but also an own goal for Government.
'We would urge them to now set out a forward plan for how they will work with the sector to support a more effective road network, building upon the positive vision they have for the transport system.'
ADEPT, which represents local authority place directors, said it was also disappointed by the decision.
A spokesperson said: 'Local authorities are committed to finding innovative, technology-driven solutions that support sustainable traffic flow and improve network management – this fund would have helped deliver this ambition.'
