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Local Transport Capital Settlement 2007


27th November 2007

Local transport in the West Midlands is set to benefit from £511 million in Government investment over three years, Transport Minister Rosie Winterton confirmed today.

The investment is part of the Local Transport Capital Settlement, which helps to deliver important improvements such as new road safety measures, better street lighting, road maintenance, park and ride facilities and cycle lanes.

Rosie Winterton said:

“The West Midlands has proven a pioneer of innovative transport projects, having been the first region to test Active Traffic Management on the M42, as well as the first motorway toll road in the UK.

“But smaller transport schemes are also vital for an effective local transport system, allowing people to get to jobs, schools and leisure activities quickly and easily. This £511million settlement will allow councils in the West Midlands to continue the local transport improvements they’ve made in recent years which will, in turn, make a significant contribution to the region’s attractiveness to national and international business”.

Minister for the West Midlands, Liam Byrne, said:

“A fantastic new New Street is not the only thing we need to get the West Midlands on the move. We need the smaller projects too which is why today’s funding boost is brilliant news.”

Local transport projects are already playing their part in improving transport around the West Midlands. Recent examples of projects that this funding contributed towards include:

This is in addition to larger transport projects supported by the Department such as a transport interchange at Coleshill, North Warwickshire, the Northfield Relief Road in Birmingham and the £25m Rugeley Eastern Bypass which opened in September 2007.

The West Midlands will also benefit from £36 million through The Specific Road Safety Grant announced last year. The grant means more money and flexibility for local authorities to deliver safer roads.

To give councils greater certainty to plan for the future, this settlement provides funding for the three-year period to 2010/11, unlike previous settlements which were made annually.


  1. Today’s investment includes £264 million for highways capital maintenance and £247 million for smaller transport improvement schemes.
  2. This year’s investment delivers funding for 2008/09 to 2010/11. It confirms the indicative integrated transport allocations of £1,768 million across the country for 2008/09 to 2010/11 announced last year, which were subject to this year’s spending review.
  3. The specific road safety grant of £36 million replaces the previous system of funding safety cameras through fine income. From 1 April 2007 safety cameras have been integrated into the local transport plan system and authorities have greater flexibility to use this grant to implement any locally agreed mix of road safety measures.
  4. Of the funding for highways capital maintenance, £254 million is being distributed formulaically. The remaining £10 million has been or will be allocated in response to specific bids. These include bids for major maintenance and bridge strengthening on the primary route network and, for smaller authorities, bids for exceptional maintenance schemes.
  5. The highways capital maintenance formula has recently been revised, following a consultation. The results of this consultation, ‘Local Transport Planning: The Next Steps’, which also asked about the future of Local Transport Plans and reporting on progress, can be found at www.dft.gov.uk/pgr/regional/localtransportbill/govresponse
  6. The second Local Transport Plans (LTPs) were submitted in 2006 by all English local transport authorities outside London, containing an integrated transport strategy for their area and a costed programme of measures to improve local transport over the period 2006/07 to 2010/11.
  7. Full details of individual local authority LTP allocations throughout England will be available on the Department’s website http://www.dft.gov.uk/pgr/regional/ltp/capital/ltpsettle07/
  8. The following table shows the 2008/09 to 2010/11 allocations announced today for each of the local transport authorities in the West Midlands.
  9. Some examples of improvements paid for with money provided over the first LTP period include:
    • A fleet of new, low floor buses serving rural areas in Herefordshire, used £2.3 million of LTP funding to improve access to services for local communities.
    • In Shropshire, improved road safety measures have combined to achieve a 43% reduction in the numbers of people killed and seriously injured, and a 60% reduction in numbers of children killed and seriously injured on its roads.
    • Telford & Wrekin Borough Council has successfully improved bus services by implementing 5 quality bus routes, 24 bus priority schemes and 9 public transport interchanges, leading to an 18% increase in bus usage.
    • A new £4.2M viaduct bridge in Upton on Severn in Worcestershire was designed and constructed partly with LTP funding, with work programmed to minimise disruption during the tourist season.
Area Integrated Transport Block (2008/09 to 2010/11) £000s Highways Capital Maintenance (2008/09 to 2010/11) £000s Total (2008/09 to 2010/11) £000s Road Safety Grant £000s
West Midlands Region Total 246,847 264,418 511,265 35,570
Herefordshire 6,729 29,626 36,355 1,205
North Staffs (Joint Plan) 13,329 5,723 19,052 1,446
Shropshire 12,012 43,029 55,041 2,649
Staffordshire (Plan) 21,493 46,019 67,512 5,159
Telford and Wrekin 6,408 6,470 12,878 1,093
Warwickshire 16,471 29,855 46,326 6,082
West Midlands (Joint Plan) 155,421 70,968 226,389 13,678
Worcestershire 14,984 32,728 47,712 4,259

Issued by GNN West Midlands on behalf of the Department for Transport – call Filippa St Aubin d’Ancey on 0121 352 5516

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