Agenda item

Tom Finnegan-Smith, Acting Transportation Unit Manager, to report.

-           to report the proposed response to the Department for Transport consultation on Local Transport Funding.

Consideration was given to a report, presented by the Transportation Manager, relating to Rotherham’s proposed response to the Department for Transport consultation on Local Transport Funding, to be included within the response being prepared on behalf of South Yorkshire by the Local Transport Plan Programme Director.

It was reported that in August 2010 the Department for Transport (DfT) issued consultation on the way Local Transport Plan (LTP) funding was calculated and distributed.

By way of background an explanation was given of how LTP funding had previously been allocated in two ‘blocks’ the ‘Integrated Transport (IT) Block’ – capital funding for small transport improvement schemes and the ‘Maintenance Block’ – capital funding for maintenance schemes.

It was pointed out that the effects of altering the formulae used to determine IT and Maintenance Blocks (potential reduction or increase in funding) is separate to any funding announcements as part of the Comprehensive Spending Review (CSR) on 20th October 2010.   However, the CSR would clearly determine the overall level of funding that would be available and following the in year cuts announced in June it was expected that the level of funding available could be reduced by up to 40%.

It was also pointed out that any changes to the way in which LTP Block funding was allocated would be incorporated into the Local Government Finance Settlement (2011/12 – 2014/15) to be published in December 2010. This settlement was expected to include individual local authorities’ LTP capital allocation for the IT and Maintenance Blocks.

It was explained that the responses to the consultation would feed into the decisions that the DfT takes on how the allocations for the two transport blocks are calculated. The consultation also highlighted that LTP IT and Maintenance Block funding were not ring-fenced allocations.

The formal response to the consultation was being prepared on behalf of South Yorkshire by the LTP Programme Director for DfT’s deadline of 6th October 2010.

Rotherham’s full response to all of the points raised in the consultation for inclusion within the South Yorkshire response was set out in Appendix 1 to the submitted report. 

The proposed changes in respect of the Maintenance Block and the Integrated Transport Block, together with the implications for Rotherham were detailed in the submitted report.

The consultation also invited feedback in respect of the allocation of funding and whether block funding should be paid out as grant or supported borrowing.  Views were also sought on whether the funding blocks should be paid solely to Integrated Transport Authorities (ITA). 

Members present commented on:-

-                      role of the ITA

-                      role of the Local Economic Partnership

-                      Member representation

-                      the need for allocations to be ring-fenced

It was pointed out that if the views to be submitted by South Yorkshire differed widely from Rotherham’s then a separate response would be submitted.

Resolved:-  That the response to points raised in the DfT consultation, as detailed in Appendix 1 to the report now submitted, be supported for inclusion within the response being prepared on behalf of South Yorkshire by the LTP Programme Director.