The Department for Transport (DfT) has announced how the £104 million resource funding component of the new Local Transport Grant (LTG) mechanism will be allocated to smaller cities, towns and rural areas in England from the next financial year.
As part of an overall £2.3 billion, three-year LTG allocation for FY2026/27 to FY2028/29, the resource element sits alongside much more extensive capital allocations. It will empower local transport authorities (LTAs) outside city regions “to decide how to improve public transport and drive forward schemes that boost growth and matter most,” DfT says.
Allocation of resource funding will enable LTAs to develop detailed plans for local schemes funded out of LTG capital funding while also allowing those bodies to manage the delivery of those capital projects.
New zero-emission buses are among the areas where wider LTG allocations could be spent, alongside improvements to accessibility, reducing congestion and making streets safer, the Department adds.
Capital allocations to each LTA were revealed at the time that LTG was announced in June. Guidance will be issued later this year to support them in making the best use of their LTG allocations across both streams.
Says Transport Secretary Heidi Alexander: “Good transport connections are the foundation of thriving communities, which is why we are backing local authorities to transform journeys for millions of people across England.
“This investment will help councils to improve transport for local people – from cleaner buses to safer cycling routes – connecting communities with jobs, education, and essential services.
“By putting resources directly into the hands of local leaders, we are ensuring that every part of the country benefits from better transport links that support economic growth and provide opportunity – all part of our Plan for Change.”
Of LTAs in England that are in scope of the Local Transport Grant, the Lancashire Combined County Authority, established earlier in 2025, gets the highest resource allocation, at £7.6 million over the three financial years in question.
The Greater Lincolnshire Combined County Authority is in second place with £5.59 million, while the York and North Yorkshire Combined Authority will see £3.47 million and the Hull and East Yorkshire Combined Authority £3.44 million. The non-Combined Authority allocated the most is Staffordshire County Council, with £3.39 million.
| Local Transport Authority | Total resource funding | FY2026/27 | FY2027/28 | FY2028/29 |
| Bedford | £725,000 | £242,000 | £242,000 | £242,000 |
| Bournemouth, Christchurch and Poole | £1,125,000 | £375,000 | £375,000 | £375,000 |
| Bracknell Forest | £610,000 | £203,000 | £203,000 | £203,000 |
| Brighton and Hove | £893,000 | £298,000 | £298,000 | £298,000 |
| Buckinghamshire | £1,429,000 | £476,000 | £476,000 | £476,000 |
| Cambridgeshire and Peterborough Combined Authority | £2,458,000 | £819,000 | £819,000 | £819,000 |
| Central Bedfordshire | £947,000 | £316,000 | £316,000 | £316,000 |
| Cheshire East | £1,747,000 | £380,000 | £684,000 | £683,000 |
| Cheshire West and Chester | £1,691,000 | £351,000 | £670,000 | £670,000 |
| Cornwall | £1,451,000 | £484,000 | £484,000 | £484,000 |
| Cumberland | £1,465,000 | £296,000 | £584,000 | £585,000 |
| Devon and Torbay Combined County Authority | £2,559,000 | £853,000 | £853,000 | £853,000 |
| Dorset | £1,090,000 | £363,000 | £363,000 | £363,000 |
| East Sussex | £1,408,000 | £469,000 | £469,000 | £469,000 |
| Essex | £3,241,000 | £1,080,000 | £1,080,000 | £1,080,000 |
| Gloucestershire | £1,602,000 | £534,000 | £534,000 | £534,000 |
| Greater Lincolnshire Combined County Authority | £5,585,000 | £1,063,000 | £2,259,000 | £2,263,000 |
| Hampshire | £3,040,000 | £1,013,000 | £1,013,000 | £1,013,000 |
| Herefordshire, County of | £1,097,000 | £242,000 | £427,000 | £428,000 |
| Hertfordshire | £2,641,000 | £880,000 | £880,000 | £880,000 |
| Hull and East Yorkshire Combined Authority | £3,444,000 | £634,000 | £1,403,000 | £1,407,000 |
| Isle of Wight | £634,000 | £211,000 | £211,000 | £211,000 |
| Kent | £3,379,000 | £1,126,000 | £1,126,000 | £1,126,000 |
| Lancashire Combined County Authority | £7,588,000 | £1,349,000 | £3,117,000 | £3,123,000 |
| Leicester | £2,071,000 | £360,000 | £854,000 | £857,000 |
| Leicestershire | £2,736,000 | £581,000 | £1,079,000 | £1,076,000 |
| Luton | £802,000 | £267,000 | £267,000 | £267,000 |
| Medway | £906,000 | £302,000 | £302,000 | £302,000 |
| Milton Keynes | £928,000 | £309,000 | £309,000 | £309,000 |
| Norfolk | £2,112,000 | £704,000 | £704,000 | £704,000 |
| North Northamptonshire | £1,726,000 | £353,000 | £686,000 | £687,000 |
| North Somerset | £784,000 | £261,000 | £261,000 | £261,000 |
| Oxfordshire | £1,772,000 | £591,000 | £591,000 | £591,000 |
| Plymouth | £873,000 | £291,000 | £291,000 | £291,000 |
| Portsmouth | £763,000 | £254,000 | £254,000 | £254,000 |
| Reading | £704,000 | £235,000 | £235,000 | £235,000 |
| Rutland | £465,000 | £149,000 | £157,000 | £158,000 |
| Shropshire | £1,532,000 | £329,000 | £602,000 | £602,000 |
| Slough | £671,000 | £224,000 | £224,000 | £224,000 |
| Somerset | £1,456,000 | £485,000 | £485,000 | £485,000 |
| Southampton | £849,000 | £283,000 | £283,000 | £283,000 |
| Southend-on-Sea | £711,000 | £237,000 | £237,000 | £237,000 |
| Staffordshire | £3,391,000 | £683,000 | £1,357,000 | £1,351,000 |
| Stoke-on-Trent | £1,520,000 | £287,000 | £623,000 | £610,000 |
| Suffolk | £1,821,000 | £607,000 | £607,000 | £607,000 |
| Surrey | £2,666,000 | £889,000 | £889,000 | £889,000 |
| Swindon | £816,000 | £272,000 | £272,000 | £272,000 |
| Telford and Wrekin | £1,323,000 | £243,000 | £539,000 | £542,000 |
| Thurrock | £704,000 | £235,000 | £235,000 | £235,000 |
| Warrington | £1,210,000 | £256,000 | £476,000 | £478,000 |
| Warwickshire | £2,435,000 | £508,000 | £964,000 | £962,000 |
| West Berkshire | £676,000 | £225,000 | £225,000 | £225,000 |
| West Northamptonshire | £1,811,000 | £394,000 | £709,000 | £708,000 |
| West Sussex | £2,054,000 | £685,000 | £685,000 | £685,000 |
| Westmorland and Furness | £1,216,000 | £266,000 | £475,000 | £476,000 |
| Wiltshire | £1,338,000 | £446,000 | £446,000 | £446,000 |
| Windsor and Maidenhead | £661,000 | £220,000 | £220,000 | £220,000 |
| Wokingham | £714,000 | £238,000 | £238,000 | £238,000 |
| Worcestershire | £2,461,000 | £506,000 | £978,000 | £977,000 |
| York and North Yorkshire Combined Authority | £3,471,000 | £767,000 | £1,353,000 | £1,352,000 |
| Total | £103,998,000 | £27,999,000 | £37,998,000 | £37,997,000 |
