The Department provides funding to local transport authorities in England to help them develop their local transport services and improve and maintain their infrastructure. The funding is issued in a number of ways, from needs-based allocations to bid-based grants.

Most DfT funding is provided as ‘capital’, typically for the provision and maintenance of infrastructure such as road improvements, although some funding is provided as ‘revenue’ for the ongoing provision of services, including buses. Some funding is a mixture of revenue and capital and a number of funding streams are now distributed through the Department for Communities and Local Government (DCLG)’s area-based grant system.

Although this site provides details of some specific streams for revenue funding it should be noted that revenue expenditure on transport is generally supported through DCLG’s Local Government Revenue Support Grant (RSG).

Local Sustainable Transport Fund

• Local Sustainable Transport Fund guidance on the application process
• Local Sustainable Transport Fund workshop video

DfT local transport funding streams

Please see the sections below for information on the Departments local transport funding streams.

• Extra funds for pothole repairs in England.
• Local Transport Capital Block Funding
• Capital Funding
• Revenue Funding
• Capital and Revenue Funding
• Consultation on new Urban Challenge Fund

Emergency funding

The Department is prepared to consider an emergency claim when an exceptional natural event causes significant damage to highways capital infrastructure, and the repairs need doing urgently.

The Department expect local authorities to make a contribution to such repairs, and have decided that local authorities should meet costs up to a sum equivalent to 15% of their Local Transport Plan (LTP) Highways Maintenance (HM) capital allocation for the year in which the damage happened.

Major projects

Large scale transport projects costing in excess of £5 million and requiring DfT appraisal.

Relevant data will be provided shortly.

Concessionary fares

The introduction of free off-peak concessionary bus travel throughout England from 1 April 2008 gave the opportunity for greater freedom and independence to around 11 million older and disabled people in England. The concession guarantees free local bus travel for those eligible from 9.30am until 11pm on weekdays, and all day weekends and bank holidays. The concession recognises the importance of public transport for older people and the role access to transport has to play in tackling social exclusion and maintaining well-being.

Since April 2008 the Department for Transport has provided additional special grant funding to local authorities to fund the extension of the concessionary travel scheme to cover England-wide travel. The special grant funding was £212m in 2008/09 and rises to £217m for 2009/10 and £223m for 2010/11. This is in addition to the funding that government provides each year, through the formula grant process, for concessionary travel. Total spending on concessionary travel is now around £1 billion per year.

• Concessionary bus travel

DfT’s funding settlement with Transport for London (TfL)

Transport for London (TfL) is a public body separate to central Government, and has devolved responsibility for the majority of transport services in London. TfL receives substantial funding from the Department however, almost £3 billion in 2009/10.