£104 million government investment to deliver faster, more reliable travel for millions

2 September 2025

Millions of people across the country will have greater access to jobs, education and public services thanks to a £104 million government funding boost, which will be shared with communities outside England’s major cities.

Thanks to the additional resource funding, local authorities can now decide how to improve public transport and drive forward schemes that boost growth and matter most to their communities. This could include new zero emission buses, improving accessibility, reducing congestion and making streets safer with improved lighting and crossings for pedestrians and cyclists.

The government has now confirmed how much funding each local authority across the country will be receiving under the Local Transport Grant (LTG). The funding boost will see significant uplifts for the North West, Yorkshire and Humber, East Midlands and West Midlands and will enable councils to develop detailed plans for local schemes that have the greatest impact in their areas.

Funding will also ensure councils can manage the delivery of projects that improve journeys to work, shops and essential services across towns and rural areas, helping grow local economies to deliver the Plan for Change.

Transport Secretary, Heidi Alexander, said:

Good transport connections are the foundation of thriving communities, which is why we’re backing local authorities to transform journeys for millions of people across England.

This investment will help councils to improve transport for local people – from cleaner buses to safer cycling routes – connecting communities with jobs, education and essential services.

By putting resources directly into the hands of local leaders, we’re ensuring every part of the country benefits from better transport links that support economic growth and provide opportunity – all part of our Plan for Change.

Jane Gratton, Deputy Director of Public Policy, British Chambers of Commerce, said:

This is much needed funding to help people access jobs and services across England. It will also better connect businesses, customers, and suppliers. High-quality, reliable transport options, which reduce congestion, are key to boosting local economic growth.

Ben Plowden, Chief Executive, Campaign for Better Transport, said:

With 70% of trips under 5 miles, properly resourced local authorities are central to the task of improving sustainable travel choices. Confirmation of this investment to help them plan and deliver schemes will be very welcome in towns and rural areas, where difficult journeys can cut people off from jobs, services and connections with others.

Better transport makes a huge difference to people’s lives, unlocking opportunities and revitalising communities.

David Skaith, the Mayor of York and North Yorkshire, said:

An accessible, affordable and reliable transport network is critical to growth in our region – connecting people to jobs, education and vital services.

After decades of neglect, we won’t be able to realise our transport aspirations overnight. However, this funding is a welcome boost that will ensure we can continue laying the groundwork and bringing together the skills and expertise we need to deliver the transport improvements across York and North Yorkshire that our communities want and need to see.

The investment provides unprecedented support for local transport improvements that support the government’s Plan for Change, driving growth and access to opportunity.

Today’s £104 million resource allocation boost for local authorities follows the government’s commitment of £2.2 billion, providing them with multi-year funding certainty to improve transport in their communities.