Source · Select Committees · Public Accounts Committee
Recommendation 24
24
Rejected
Funding uncertainty for active travel hinders local authorities' strategic planning and scheme delivery.
Conclusion
In 2018, as part of our examination of the financial sustainability of local authorities, we said that good financial planning within local authorities relied on certainty and stability of funds, while financial uncertainty created risks to value for money.55 Active travel investment has not escaped funding-related issues, which the NAO reported are hindering the ability of local authorities to plan strategically, deliver active travel schemes more efficiently, and invest in schemes which might make a bigger contribution to DfT’s objectives for 2025.56
Government Response Summary
The government disagrees with the implied recommendation to resolve funding uncertainty for active travel. While some multi-year funding exists, other dedicated active travel grants remain annual due to HM Treasury approvals, which cannot be revisited until the next Spending Review.
Government Response
Rejected
HM Government
Rejected
6.1 The government disagrees with the Committee’s recommendation. 6.2 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. 6.3 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. 6.4 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.