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Transport Innovation Fund

My right honourable friend the Secretary of State for Transport, Mr Douglas Alexander, has made the following Written Ministerial Statement. Further to the Written Statement by the then Secretary of State, the right honourable Alistair Darling MP, on 26 January 2006 (Official Report, Commons; cols. 66-67WS), I am today publishing further guidance for local authorities interested in developing business cases for funding from the transport innovation fund (TIF) for local schemes to tackle congestion. Local authorities have asked for support in developing their proposals to enable them to come forward with business cases in 2007. The department has supported those authorities that want to bring forward innovative schemes to address specific local congestion problems. On 6 November we awarded a further £7.5 million of pump-priming funds to support the development of local TIF packages that combine demand management, including road pricing, with better public transport. Up to £200 million per year from TIF will be made available for such packages. However, although we would not expect to fund any individual package that was larger than the total amount, more may be made available if a sufficient number of high quality and higher value schemes emerge. We will be particularly looking to fund schemes that can pilot approaches to road pricing elsewhere as well as provide benefits locally. We would hope to see small schemes that could be up and running by 2010-11 and larger local schemes within two years of that. As the forthcoming draft Road Transport Bill will specify, any subsequent proposals on a national road pricing scheme will require new primary legislation. We are today sharing the product of the substantial analytical work on local scheme design and appraisal undertaken by the department over the past year. It will help local authorities to develop well designed schemes which are, where appropriate, consistent with each other and any future local or national schemes. This funding policy is without prejudice to any other decisions that may be required in relation to the schemes that underlie TIF proposals, which will be separately considered at the appropriate time. Copies of the guidance have been placed in the Libraries of both Houses.