Source · Select Committees · Public Accounts Committee
Recommendation 6
6
Rejected
Provide local authorities with greater funding certainty and simplify active travel grant schemes.
Recommendation
Local authorities are being held back from delivering successful active travel interventions by the considerable uncertainty in the funding available for schemes. Since 2016, funding for active travel has been provided to local authorities through more than 36 active travel related funding streams. Local authorities must apply to multiple funding streams separately and each will have different bid requirements and timetables, often with very short deadlines for submissions and even shorter deadlines for delivering a scheme once funding is provided. Funding is often available in the short-term or provided annually, rather than through multi- year settlements and this instability is not conducive to delivering large or innovative schemes that would have a significant impact on active travel rates. Authorities that either lack the resource or experience to construct bids are placed at a disadvantage and the burden of applying for multiple fundings streams or at short notice can be exacerbated for smaller authorities. DfT recognises the need for fewer, more coherent funding schemes. Recommendation 6: DfT, working with other departments including HM Treasury, should set out in the next six months how and when local authorities will be provided with greater certainty about the funding available for active travel to enable them to invest in and deliver long-term, ambitious active travel interventions. This work should include an examination of whether the number of grant schemes available for active travel can be reduced or simplified.
Government Response Summary
The government disagrees with the recommendation, explaining that while some longer-term funding exists for certain authorities via CRSTS and Network North, dedicated active travel grants are annual due to the 2021 Spending Review and cannot be changed until the next review. It expresses an ambition to simplify grant schemes in the longer term.
Government Response
Rejected
HM Government
Rejected
The government disagrees with the Committee’s recommendation. The department recognises that multi-year funding certainty is essential to local authorities’ ability to plan and deliver ambitious active travel schemes. The introduction of five- year City Region Sustainable Transport Settlements (CRSTS) underlines the department’s ambition to both rationalise existing schemes and give local government funding certainty for the longer-term. Network North set out significant longer-term funding for local transport for a number of local authorities and the department is developing the detail for how this will operate. This includes an increase in CRSTS as well as the introduction of Local Integrated Transport Settlements. Other forms of capital grant funding however, including the dedicated active travel grants managed by ATE are only available on a yearly basis due to approvals given by HM Treasury following the Spending Review 2021 settlement. There is no opportunity to revisit this ahead of the next Spending Review. The department will seek to manage fewer and more joined up grant schemes for local authorities over the longer term, and subject to future Spending Review conditions. However, continued provision of dedicated grant funding, including revenue measures, for local authorities will be essential for ATE to be able to provide the targeted support needed to boost local authority capability. The department will reflect any revised approach within third statutory cycling and walking investment strategy, which is due in 2025.