A report outlining the Department for Transport’s (DfT) Local Transport Grant funding for the period 2026/27 to 2029/30 and seeking approval to submit the Council’s initial Local Transport Delivery Plan to Government.

The Committee considered a report that set out the Department for Transport’s (DfT) Local Transport Grant funding allocation for the period 2026/27 to 2029/30 and sought approval to submit the Council’s initial Local Transport Delivery Plan (LTDP) to Government. The report also updated on progress and outcomes on the delivery of transport schemes and initiatives in Reading over recent years. A copy of the proposed Local Transport Delivery Plan (March 2026) was attached to the report at Appendix A. 

The report set out the Government’s new approach to local transport funding. The new approach replaced the previous competitive bidding model with a needs-based formula for allocating grant funding to local transport authorities. Under the new system, local authorities would be required to produce a Local Transport Delivery Plan setting out how the Integrated Transport Fund (ITF) grant would be prioritised, including details of proposed schemes, interventions, programmes and packages of expenditure. Initial versions of Delivery Plans were required to be submitted to the DfT by 20 March 2026, with a final version then needed by 18 September 2026.

The report also set out Reading’s grant funding allocation for capital and revenue grants. The allocation covered capital funding for the period 2026/27 to 2029/30 and revenue funding for the period 2026/27 to 2028/29. Under the new funding model, grant allocations would continue to be based on different modes, such as highways maintenance, bus services and active travel, which would be consolidated into ITF grant payments. The new approach would provide local authorities with longer-term certainty and greater flexibility to decide how best to utilise the funding, with fewer grant-specific conditions than in previous years. The report also confirmed that the Council would continue to receive a separate grant for the provision of Bikeability cycle training in schools for the period 2026/27 to 2028/29.

The report noted that whilst authorities had been provided with greater flexibility, the Government had also made it clear that the grant funding needed to be used to achieve national priorities which would be set through the Local Transport Outcome Framework. This would outline measurable priority outcomes that the Government wanted local authorities to achieve and would reflect shared national and local priorities for transport which would be aligned with the upcoming Integrated National Transport Strategy.

The report stated that the Council had made considerable progressin delivering a range of local transport schemes and improvements, in part due to successfully having secured significant amounts of external grant funding through the competitive bidding process. This had allowed the Council to improve travel options for residents, with a particular focus on sustainable transport choices, and aligned with the overall vision and objectives set out in Reading’s Local Transport Plan (LTP). A broad range of transport schemes and improvements had been delivered that included major upgrades to Reading’s railway stations, new bus and cycling infrastructure and active travel initiatives.

The outcomes achieved from the work to promote sustainable travel had resulted in Reading achieving amongst the highest levels of sustainable travel in the country, outside of London, with a considerable shift to the use of sustainable transport modes in recent years. The report highlighted that passenger numbers had increased at all four rail stations in the Borough in 2024/25, with usage of Reading West up 43% after its redevelopment and Reading Station having gained nearly 1 million more passengers compared to the previous year to reach 14.3 million, making it one of the busiest train stations outside of London. Bus usage in 2024/25 had also continued to grow and had almost returned to pre-Covid levels with 20 million journeys made on local services, a rise from 19.5 million journeys compared to the previous year. Outside London Reading had remained the third highest area for bus use per capita, though the report acknowledged some recent declines in the numbers of fare-paying passengers during the current year. Levels of Active Travel had also increased, with approximately 55,000 walking trips and 11,000 cycling trips undertaken every day to and from the town centre. The trend for levels of cycling to and from the town centre had increased considerably, from a mode share of 2-3% between 2008-17 to a mode share of 5-6% in recent years.

The Initial Local Transport Delivery Plan (attached at Appendix A) set out how the Council proposed to build on its past successes and how it intended to allocate the ITF grant allocation from Government for the period 2026/27-2029/30 for capital funding, and 2026/27-2028/29 for revenue funding. The Delivery Plan contained several schemes that were already underway, these included:

• the annual highways resurfacing programme;
• the introduction of new electric buses;
• the delivery of further bus priority measures;
• improved passenger facilities at the Mereoak Park and Ride site;
• provision of enhanced bus services (including the Buzz 9 and 18 routes);
• delivery of the Bath Road / Castle Hill active travel scheme;
• the provision of a comprehensive programme of active travel initiatives, training and incentivisation to encourage higher levels of walking, cycling and wheeling.

The Delivery Plan also included detail on new schemes and initiatives designed to build upon the Council’s recent Bus Service Improvement Plan (BSIP) and Active Travel Fund (ATF) programmes. Examples of new items included the planned Local Cycling, Walking Infrastructure Plan (LCWIP) update and improvements for all users in Sidmouth Street through a redesign of the existing road layout. Funding had also been allocated to the Council’s ongoing programmes and schemes relating to road safety, traffic management measures, parking and highways maintenance. The report noted that the Council was required to submit its initial Delivery Plan to the Department for Transport by 20 March 2026 and that there would be an opportunity thereafter to develop a final Delivery Plan before the final deadline on 18 September 2026.

Resolved –

(1)           That the allocation of local transport grant funding from Government for the period 2026/27-29/30 be noted;

(2)           That submission of the Council’s initial Local Transport Delivery Plan to Government, as provided at Appendix A, be approved.