Transport funding boost announced for Lancashire

Thursday, 19 February 2026 12:34

By Paul Faulkner

Lancashire will get almost £29m more in transport funding from the government in two years’ time than it does today.

The county will see its total cash pot – for the likes of road maintenance, subsidised bus services, cycling and walking schemes and electric vehicle charging infrastructure – rise from £143.6m in the 2026/27 financial year to £172.2m by 2028/29.

The near 20-percent boost was revealed in papers presented to a meeting of the Lancashire Combined County Authority (LCCA) devolution body.

It follows a streamlining of the grant system for awarding transport funds to local areas, with the Department for Transport (DfT) rolling what were previously five separate allocations into just two – an integrated transport fund and a bus services fund. LCCA members were told that the aim was to give local leaders “greater flexibility to prioritise” how the money is spent.

The change – from April – coincides with an overhaul of the way the transport system operates in Lancashire as a result of devolution. The LCCA will become the sole Local Transport Authority, taking on responsibilities that were previously split three ways between Lancashire County Council, Blackpool Council and Blackburn with Darwen Council.

The Local Democracy Reporting Service (LDRS) understands that the funding increase – which slips back to £164.4m in 2029/30 – is part of a DfT settlement calculation not related to devolution in the county.

Nevertheless, deputy LCCA chair – and Blackburn with Darwen Council leader – Phil Riley said the extra cash was “good news” and that it felt like Lancashire was now “getting started” with its newly-devolved transport powers.

The new consolidated fund is split between money for capital projects and day-to-day revenue spending – on an 87-percent-to-13-percent ratio as of 2028/29.

The DfT requires the LCCA to submit the final version of its Local Transport Delivery Plan for the area – covering the period through until 2030 – by mid-September.