Revenue vs Capital Mismatch
The next few years will see an upward trend in local transport capital grant funding from central government, supported by a wide-ranging consensus about the contribution of local transport networks to economic growth. In contrast, Local Authorities have seen a sustained decline in resource funding, driven by deep cuts to the Department for Communities and Local Government‟s (DCLG) budget. And there is no sign the cuts are about to stop. As the mismatch between capital and revenue funding grows, this could ultimately damage the effectiveness of capital investment in local transport networks. This report explores how resource funding constraints are affecting the delivery of local transport capital schemes and how this is likely to evolve over the next few years.