Local authority roads to be funded from vehicle excise duty

The government is set to channel 拢1bn of extra funding into local roads as part of its new transport investment strategy.

The Department for Transport (DfT) proposes the creation of a 鈥榤ajor road network鈥�, which would see a share of the annual national road fund, financed by vehicle excise duty (VED), given to local authorities to improve or replace A roads currently under their management.

Transport secretary Chris Grayling said: 鈥淭he proposals for the major road network respond to the Rees Jeffreys Road Fund study last year, which highlighted the disparity between the funding and planning of Britain鈥檚 motorways 鈥� the strategic road network 鈥� and local authority A roads.

鈥淭he new plans mean that main roads currently overseen by local authorities would share the VED-funded national roads fund which was previously ring-fenced for national routes. UK VED was 拢5.8bn for 2016-17.鈥�

Grayling told The Times that 拢1bn of the VED funding, which is expected to rise to 拢6.8bn in five years鈥� time, would be allocated to A roads outside of Highways England鈥檚 control.

He continued: 鈥淭he transport investment strategy also plans for a new 鈥榬ebalancing鈥� measure, which will judge how investment programmes contribute to a more balanced economy, and prioritises investment that increases productivity or growth, supports new housing, improves reliability and tackles congestion.

鈥淚nvestment should support every part of the country, and, where needed, fast track smaller schemes that are proven solutions so passengers and drivers get the benefits more quickly.鈥�

The government has allocated more than 拢61bn to transport over the five years to 2020-21. An additional 拢2.6bn was added in the autumn statement as part of a national productivity investment fund, which included an extra 拢1.1bn for local transport and 拢220m for national roads.

Director of external affairs for the Civil Engineering Contractors Association (CECA) Marie-Claude Hemming said: 鈥淧roposals for a major roads network should be welcomed, as they will enable local authorities to target investment where it is needed, to the benefit of road users and the taxpayer.

鈥淐ECA is also a keen advocate of rebalancing the economy, and has argued that all nations and regions in the UK must be given the opportunity to become powerhouses in their own right.鈥�

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