Funding for local transport: an overview

This report identifies issues and risks which may arise as the Department for Transport (DfT) devolves more control over funding and delivery of transport services to local bodies.

The DfT has recently announced proposals to devolve funding for major transport schemes to new local transport bodies and is also consulting on devolving bus funding and some responsibilities for rail services to local authorities.

In this report the National Audit Office calls on the DfT to clarify its approach as it implements these changes and moves into the new ways of working. This includes being clearer on who is accountable for local transport funding and how they will be held to account.

The report says that while DfT funding to local authorities has remained stable following 
the 2010 Spending Review and Autumn Statement, there has been a 28% real terms fall in grants from the Department for Communities and Local Government over the spending review period. It warns that as councils have commitments such as providing subsidised bus fares, which are largely beyond their control, spending on highway maintenance is likely to fall.

This report aims to provide an overview of the complex local transport landscape, and sets out:

• National and local government responsibilities to provide and fund local transport services in England.

• What changes are planned.

• How the accountability arrangements work, including the information available to hold those responsible to account and the DfT’s role in overseeing the system.