On 4 October 2023 the government announced the cancellation of HS2 north of Birmingham and the reallocation of funds to the Midlands and the North under the umbrella of the Network North plan. Read the government's Network North announcement
Funding awarded as part of the Network North plan should be additional to existing resources to ensure that the benefits are realised within the North and Midlands regions.
At a local level, highways and transport authorities have also been awarded funding in several areas:
| Road Resurfacing Fund | Bus Service Improvement Plan (BSIP+) | Local Transport Fund |
|---|---|---|
| Announced: October 2023 | Announced: October 2023 | Announced: February 2024 |
| Committed grant: £4.516m Spend period: 2023/24 to 2024/25 |
Committed grant: £7.63m Spend period: 2023/24 to 2024/25 |
No committed funding to date |
| Indicative grant: £126m Spend period: 2025/26 to 2033/34 |
Indicative grant: To be confirmed Spend period: 2025/26 to 2028/29 |
Indicative grant: £238m Spend period: 2025/26 to 2031/32 |
| Intended use: Capital highway asset maintenance | Intended use: Revenue bus service support | Intended use: Capital improvements to the transport network |
| Average annual uplift*: £14m | Average annual uplift*: £3.815m | Average annual uplift*: £34m |
* The Department for Transport has indicated all capital grants are likely to be backloaded over the funding period.
Road Resurfacing Fund
Under the Network North plan, the council has received an additional £2.258 million of funding in 2023/24 from the Road Resurfacing Fund for local highways maintenance, particularly for the resurfacing of carriageways, cycleways, and footways to prevent potholes and other road defects from occurring. The council will receive the same level of additional funding in 2024/25.
The Department for Transport has announced that the total minimum additional funding that the council will receive over the 11 years from 2023/24 to 2033/34 will be £131 million. The amount of money in each of the future years has yet to be announced, although is likely to be backloaded, meaning larger allocations will be provided later in the funding period. This is in addition to the £200 million announced in the Budget in March 2023.
Learn about the additional committed road resurfacing grant funding allocated to Leicestershire and how it is being spent:
BSIP+ and Network North Public Transport funding
The BSIP+ is a revenue-based grant funding that consists of two tranches of £1.79 million - the first was received in October 2023 and the second is due to be received in July 2024.
The Network North Public Transport is a funding of £4.05 million, due to be received in July 2024.
This means a total of £7.63 million is available over 2023/24 and 2024/25 financial years.
The focus of this funding is to improve passenger transport by delivering the best overall outcomes in growing long-term patronage, revenues, and therefore maintaining bus service levels and providing essential social and economic connectivity for local communities.
A further four-year capital and revenue funding announcement for the period from 2025/26 onwards is anticipated in the near future, which could provide an opportunity to carry out improvement schemes that may not be covered in the current BSIP+ and Network North Public Transport funding. The exact funding profile and mix are not yet known.
Local Transport Fund
On 26 February 2024, the government published the Local Transport Fund allocations 2025 to 2032. This funding has been allocated by formula, based on the population and levelling-up need of each local transport authority area. This additional funding will be predominantly capital, but will include a small resource element to ensure local transport authorities can deliver their plans.
The focus of this funding is to:
- drive better connectivity within local towns, suburbs, and cities
- drive better connectivity between local towns and cities
- improve everyday local journeys for people