The funding - known as the Local Transport Capital Settlement - will be used to take forward a variety of projects, such as schemes to improve road safety, promote cycling and enhance bus services.
Creating transport connections fit for the 21st century is a key element of the economic strategy for the North East in order to allow the region's business to prosper and give residents convenient access to jobs and services.
The Eddington Transport Study recently demonstrated that relatively low cost schemes can play a major role in creating a sustainable, efficient local transport network and it is these types of schemes - road safety measures, street lighting, road maintenance, park and ride, cycle lanes etc - that the Settlement is aimed at supporting.
Rosie Winterton said:
"Schemes such as the Sustainable Travel Town project in Darlington are an example for the rest of the country to follow. I am pleased to be able to announce this investment in the North East which will help other places in the region join the sustainable transport revolution and boost buses, walking and cycling initiatives and other local transport schemes in the North East."
North East Regional Minister Nick Brown said:
"This is a good settlement for the North East that provides significant increased investment in local transport over the next three years. The funding will allow Local Authorities to plan with confidence and to tackle their local problems whilst, at the same time, contributing to the delivery of the desired national outcomes of reduced congestion, safer roads, improved public transport and enhanced infrastructure." The investment is part of the Local Transport Capital Settlement which is given to local authorities to help them deliver transport improvements. Whilst previous Capital Settlements were issued on an annual basis, this settlement provides year on year increases for a three year period to 2010/11, giving Local Authorities greater certainty to plan for the coming years.
Local transport schemes are already making a difference in the region. For example:
- Cycle trips have increased in Northumberland by some 34% over the last three years.
- Schemes such as the new bus lane on Felling bypass in Gateshead have delivered considerable time savings for passengers in the morning peak as well as more reliable bus journey times across Durham and Tyne & Wear.
- Progress in reducing peak period traffic flows in Middlesbrough.
These are in addition to other larger schemes that have been supported by Government in the past year, such as:
- The Sustainable Travel Town and Cycling Demonstration Town status for Darlington which has reported a 14% increase in public transport trips, a 79% increase in cycling trips and 11% cut in car trips.
- £12.5million for the Darlington Eastern Transport Corridor (DETC), a new road connecting Haughton Road to the A66, providing a dedicated link to the Lingfield Point Business Park.
- Funding for the Eldon Square bus station in Newcastle which officially opened in March 2007 with an LTP contribution of £10.9m.
The North East will also benefit from £13.9 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. Previous settlements were made annually.
