West ‘could lose’ £300m of public transport cash
THE West of England could have lost out on more than £300 million of public transport investment over the next five years with it receiving a settlement at the bottom of expectations from Government.
It is thought that Chancellor Rishi Sunak will announce in the Budget this week that the region will receive £540 million for the period from 2022-2027.
West of England Metro Mayor Dan Norris hailed the news, but some tranport observers have pointed out that the West is the only major city region in the country to receive the minimum possible allocation from the Government’s City Region Sustainable Transport Settlement.
In July Transport Secretary Grant Shapps wrote to Mr Norris saying the region would receive between £540 million and £880 million.
The settlement at the bottom of expectations means the West will only receive about 61 per cent of the funding it could have gained.
In contrast major cities in the North and the Midlands will get funding at far nearer the maximum allocation.
Greater Manchester, which will receive £1.07 billion, was advised its allocation would be between £730 million and £1.19 billion; the West Midlands will receive £1.05 billion from an allocation range of £780 million to £1.28 billion and West Yorkshire will get £830 million, after being told its settlement would be between £570 million and £920 million.
Nevertheless Mr Norris welcomed the funding, which he said would be predominantly spent on improving the reliability of buses by creating more bus lanes and priority routes.
He said: “This is a big success for our great region. It’s an important vote of confidence in the West of England.
“Everyone locally knows why we need the cash – it’s to tackle traffic jams and the congestion holding us back. Currently only 1 in 11 commutes are made by public transport. This investment will also help us as we strive to meet our ambitious net zero targets by 2030.”
He added that the region’s settlement was actually the biggest by head of population.
However it is a surprise that the region only received the minimum.
Regions had to compete for the funding but guidance published in the summer by the Department for Transport suggested none would receive the minimum allocation.
The document said: “The government does not intend to fund any place at the lower end of the bidding range, subject to submissions achieving a minimum quality standard.
“Similarly, the government will not fund all places at the upper end. The competition will determine where between the lower and upper bound funding will be allocated for each city region.”
Whether the West has lost out to Government priorities to ‘level up’ the North or there were deficiencies in its funding bid remains to be seen.
The £6.9 billion transport funding is one of a number of spending pledges that Mr Sunak has revealed ahead of Wednesday’s Budget.
Mr Sunak said: “Great cities need great transport and that is why we’re investing billions to improve connections in our city regions as we level up opportunities across the country.
“There is no reason why somebody working in the North and Midlands should have to wait several times longer for their bus or train to arrive in the morning compared to a commuter in the capital.
“This transport revolution will help redress that imbalance as we modernise our local transport networks so they are fit for our great cities and those people who live and work in them.”
The £5.7 billion is a five-year settlement, and has been increased from the initial £4.2 billion proposed, the Treasury said, while the £1.2 billion of funding for buses is part of £3 billion that the Prime Minister committed to spending on a “bus revolution” in March.
Transport Secretary Grant Shapps said: “We’re absolutely committed to building back better and boosting regional economies right across the country, and these investments are a clear example of how we’re doing that.
“Modernising our transport network sits at the heart of our levelling up agenda.”
Scotland, Wales and Northern Ireland will also receive additional funding through the Barnett formula.