Local authority projects need more than twice the £600m Department for Transport funding pot to go ahead
The Department for Tranport (DfT) will provide less than half the funding needed for local authority projects, which could spell the end for dozens of the 56 schemes currently in limbo.
Yesterday transport secretary Philip Hammond announced that 56 local authority transport schemes would compete for a £600m pot of department money.
But the total cost of the 56 projects to the DfT would have come in at £1.3-4bn, meaning that the local authority road, rail, tram and bus developments will receive less than half the funding they need to all go ahead.
A DfT spokesperson said the projects in limbo, in addition to the 10 local authority projects that had been approved, would require £1.7bn from the department.
She said the 10 approved schemes would receive £300m of funding, meaning that the 56 in question would need £1.4bn from the department for them all to proceed – more than double the £600m pot they will be fighting over.
However she added that because the department was trying to squeeze down costs on all schemes, the total value of the 56 schemes could come closer to £1.3bn rather than £1.4bn.