MPs want fairer transport funding

In a new report the Transport Committee wants to change the way money is allocated for major transport projects.

Louise Ellman MP, chair of the Committee, said: ‘The Government has again changed the system for distributing money to local areas for major transport projects, with much more emphasis now on competition for funding. This will not necessarily help regions get a fairer share of transport funding and could make the situation worse.

‘Those Local Enterprise Partnerships (LEPs) which are well organised and resourced will have an advantage in bidding for funds. Other areas may lose out as a result.

‘In addition, with greater reliance on competitive bidding for funds, we will see more money wasted on failed bids.’

Solace, the association for chief executives, said it commends many of the key recommendations made in the report especially around the growing importance of alternative sources of funding. Solace director, Graeme McDonald, said: ‘We are pleased to see that the Transport Committee has drawn attention to the wasted resources for those who do not win competitive bids, and the wider issues with favouring of short-term ‘shovel ready’ schemes.

‘We have been clear advocates of investing in long-term economic projects, and that prioritising immediate benefits for LEPs or local authorities is damaging over time.’

The Committee said the new funding arrangements should be reviewed by the end of the next Parliament to ensure that they are ‘efficient and effective’.

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