Introduction

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Wednesday 25 May 2011

The sunny uplands are ahead

WORKING in local transport has not been a laugh-a-minute the last couple of years.

There has been huge uncertainty over funding, firstly three years ago when PFI deals were thrown into disarray because of the credit crunch. Then there was the long period when local authorities were bracing themselves for severe reductions in central Government grant, and the subsequent fallout when the terrible figures were finally issued.

Two reports just out give reason for hope. Firstly, the New Local Government Network highlights the need for a more localist, resilient method for funding capital infrastructure. Relying on hand-outs from Whitehall is a bizarre way of paying for vital transport links, because whenever there is an economic downturn, the tap is turned off. This means that the funding stops at the very moment when there is a need for action to upgrade transport links necessary to get the economy growing again.

A taskforce to find new, affordable ways for councils to take on responsible borrowing for essential infrastructure is welcome and long overdue.

Secondly, the Audit Commission's review of the efficiency of highways maintenance spending is right to highlight that too much of the money that should be used to make our roads fit for bus users, motorists and cyclists is needlessly thrown away because local authorities are not comparing prices for work. And by not jointly purchasing goods that contractors are in any event supplying to a number of authorities across the country, councils are ensuring that the benefits of bulk purchasing are only being enjoyed by contractors.

If the squeeze in public spending leads to a more sustainable way of funding local transport, and to councils getting much better value out of available funding, then some benefit will have come out of it.