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Transport Innovation Fund

I am today announcing the names of seven local authorities which have bid successfully for funding to develop innovative schemes to tackle congestion, including work on the feasibility of road pricing. In July, I said that the way to the long-term goal of an effective road pricing system was through local or regional pilots. To support the development of such pilots, I said that we would make funding available, through the Transport Innovation Fund, to local authorities offering innovative local packages combining demand management and better public transport. I announced on 5 July that up to £200 million p.a. would be available from the Fund for such schemes from 2008–09 to 2014–15—more if good schemes emerge. Development of these schemes will be a complex undertaking. We therefore announced, also in July, that we would make available £18 million of pump-priming funding between 2005–06 and 2007–08 to support the work of local authorities in developing these local demand management schemes. I invited Local Authorities to submit bids for this development funding. The response to this offer was extremely positive. We received thirty-three bids, many with high quality ideas. The response to our invitation offers clear evidence that local authorities recognise that action planning to tackle congestion needs to start now. I am today announcing pump-priming funding for seven areas to develop schemes:"Bristol City Council, Bath and North East Somerset Council, North Somerset Council, South Gloucestershire Council;""Cambridgeshire;""Durham County Council (for Durham City);""Greater Manchester;""Shropshire County Council (for Shrewsbury);""Tyne and Wear;""West Midlands conurbation." The local authorities in all these areas will be carrying out feasibility studies on how local demand management and better public transport could together improve travelling conditions for their local people. Although no decisions have yet been taken by any of these authorities to adopt a road pricing solution to their congestion problems, all of them are planning to look at local road pricing as part of their consideration of demand management options. This work gives us the opportunity to develop practical design for road pricing schemes, within a coherent national pricing framework. We will also be inviting officers from these authorities to work with us as members of the new Road Pricing Local Liaison Group together with others who have relevant experience of road pricing matters. This group will be responsible for taking forward thinking on those aspects of road pricing where it makes sense to have a consistent approach across all schemes, including technical standards, design and scheme appraisal. Local authorities' input will be essential to this work. Receipt of this pump-priming funding is no guarantee that an authority will be successful in bidding for the main Transport Innovation Fund. We will also work with other local authorities which have promising ideas for demand management, but which have not yet met the standard needed to secure development funding. We will be offering detailed feedback to all unsuccessful bidders, and currently plan to run a further round of pump priming funding in 2006. I shall keep the House informed.