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Department for Transport: Local Authority Major Capital Schemes

The Department for Transport administers the transport element of the Regional Funding Allocation Programme which was introduced in July 2005 to help integrate transport, economic and spatial development strategies in the English regions (excluding London). It is intended to provide local authorities with capital funding to introduce worthwhile highway and public transport schemes that support Local Transport Plans and wider regional strategies that would otherwise be unaffordable.

The Government announced in October 2010 that it had abolished the Regional Funding Allocation system and that it planned to develop a more devolved approach to funding major capital schemes in the future. As at March 2010, however, the Department was committed to provide up to £2.4 billion to schemes approved under the previous arrangements.

This review examines whether the Department has in place suitable arrangements to secure value for money from this investment with particular regard to its management of the Programme, monitoring of schemes, and evaluation of the benefits achieved. We did not examine how funding is allocated to Regions or how the Department selects schemes for assistance.

May 2011

The Department for Transport administers the transport element of the Regional Funding Allocation Programme which was introduced in July 2005 to help integrate transport, economic and spatial development strategies in the English regions (excluding London). It is intended to provide local authorities with capital funding to introduce worthwhile highway and public transport schemes that support Local Transport Plans and wider regional strategies that would otherwise be unaffordable. The Government announced in October 2010 that it had abolished the Regional Funding Allocation system and that it planned to develop a more devolved approach to funding major capital schemes in the future. As at March 2010, however, the Department was committed to provide up to £2.4 billion to schemes approved under the previous arrangements. This review examines whether the Department has in place suitable arrangements to secure value for money from this investment with particular regard to its management of the Programme, monitoring of schemes, and evaluation of the benefits achieved. We did not examine how funding is allocated to Regions or how the Department selects schemes for assistance.

May 2011