Transport funding cut ‘short sighted’

A £50 million cut to transport funding for County Durham has been labelled “short-sighted” and criticised for the “huge impact” on residents, writes Local Democracy Reporter, Bill Edgar. 

Durham County Council will receive just £23 million worth of funding to improve transport infrastructure and local services despite being allocated £72.8 million from the previous Conservative government, it has been announced. 

The shock announcement was made when the council revealed it will receive a significantly lower sum than first promised.

Council Leader Amanda Hopgood urged the Government to reconsider its decision. “It’s a short-sighted decision that will have a huge impact on residents in our county, and it flatly contradicts the deputy prime minister’s passionate rhetoric about accelerating devolution to the regions,” she said. 

“The loss of £50 million is a hammer blow for our residents, especially those in our rural towns and villages that would have benefited from the investment.”

Schemes described as “ready for the green light” include sustainable transport infrastructure projects at NETPark in Sedgefield.

Final decisions on which schemes will progress are yet to be announced. 

Cllr Hopgood added: “We have over a dozen projects around the county that the money could have delivered, which would have played transformative roles in helping people to access jobs, education and services, and improving active travel opportunities that allow people to rely less on cars, and lead healthier lives. 

“All of these schemes were ready for the green light and are part of our Inclusive Economic Strategy, connecting the communities and employment sites that are the lifeblood of our society and economy.

“As a result of this decision, under a third of those schemes can now proceed, which will hamper the momentum that we have been building for County Durham.”

The county was initially awarded a share of the £4.7 billion Local Transport Fund in February 2024, as the Tories announced a diversion of funds following the decision to scrap the northern leg of the HS2 rail project.

It was claimed Durham receiving cash from that pot was seen as essential for transport upgrades in the county between 2025 and 2027.

However, anxious council leaders faced several months of silence following the election of the new Labour government last July, as repeated calls for clarity went unanswered.

While other parts of the North East are receiving money from the City Region Sustainable Transport Settlements (CRSTS), the fact that Durham was late signing up to the North East devolution deal meant that it was excluded from negotiations that led to a reported £147 million being earmarked for Newcastle, Gateshead, Northumberland, North Tyneside, South Tyneside, and Sunderland.

The £72.8 million allocation announced in February 2024 was intended to make up for that, with Durham then to be included in phase two of the CRSTS programme beyond 2027.

North East mayor Kim McGuinness defended her party over the £50 million downgrade.

She told the Local Democracy Reporting Service: “It is obvious the £73 million the last Conservative prime minister promised to Durham was a fairytale which never existed in the Government’s accounts because of the mess it had made of the country’s finances.

“I’m bringing real money to our region for transport from the new Government.”