Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Rejected
Short-term active travel funding hinders strategic planning and risks misprioritisation.
Conclusion
The short-term nature of funding for active travel is also problematic and this was a recurrent theme in the submissions that we received from stakeholders.60 The Local Government Association told us that “uncertainty over the level or duration of funding 54 Qq 32, 61, 70, 75; C&AG’s Report, para 3.15 55 Public Accounts Committee, Financial sustainability of local authorities, Fiftieth Report of Session 2017-19, HC 970, 4 July 2018 56 C&AG’s Report, para 20 57 C&AG’s Report, para 3.18, Figure 12 58 ATE0007, Written evidence submitted by Leicester City Council 59 Qq 73, 74; ATE0007, Written evidence submitted by Leicester City Council 60 ATE0007, Written evidence submitted by Leicester City Council; ATE0003, Written evidence submitted by Local Government Association; ATE0006, Written evidence submitted by Sustrans; ATE0012, Written evidence submitted by Liverpool John Moores University; ATE0001, Written evidence submitted by Walking and Cycling Alliance Active travel in England 17 makes it extremely challenging for councils to build in-house capacity to plan and deliver a pipeline of projects, with proper time for engagement and design that can deliver the greatest benefits and value for money”.61 The NAO found that funds were often provided through one-year settlements and that the lack of long-term investment certainty was undermining the ability of local authorities to plan strategic, integrated, networks. There is a risk that local authorities may prioritise funding for schemes which are easiest to deliver within a funding window rather than those with higher strategic value.62 For example, Leicester City Council told us that to deliver within the annual bidding cycle for active travel investment, local authorities may prioritise schemes for ease of construction, or expectations of smoother consultation and engagement pathways, over strategic need.63 The Local Government Association also told us that year-on-year instability of funding was not conducive to delive
Government Response Summary
The government disagrees with the implicit recommendation, acknowledging the need for multi-year funding but stating that dedicated active travel grants are yearly due to Treasury approvals. They will seek to manage fewer, more joined-up grant schemes long-term, reflected in the 2025 CWIS.
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.