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UK Department for Transport
24 February 2010

London will receive £6 million through the Government’s Urban Congestion Performance Fund

London will receive £6 million through the Government’s Urban Congestion Performance Fund after exceeding targets to tackle congestion, Transport Minister Sadiq Khan announced today.

The money from the Department for Transport will be used to continue to help tackle urban congestion in the area. Total reward funding to date for London is now £13.5 million.

Sadiq Khan said:

“Congestion is bad for people, bad for business and bad for the environment -  and more than 80 per cent of all our congestion is in urban areas. That is why we are investing up to £60 million of extra Government funding over four years to encourage local authorities in the 10 largest urban areas to tackle congestion.

"I am delighted to announce today that London is being rewarded for outperforming local congestion targets - giving road users in these areas faster, safer and more reliable journeys, benefiting the local economy.

"Across England we have now provided £43 million to the 10 areas to tackle urban congestion and more is available to those who continue to beat their targets."

London is one of 10 urban areas across the UK sharing a total of £19.7 million for beating congestion targets.  The other areas are Nottingham, Leicester, Greater Manchester, West Midlands, Tyne & Wear, Merseyside, West of England, West Yorkshire and South Yorkshire.

The £60 million Urban Congestion Performance Fund has been set to help England’s 10 largest urban areas identify and tackle the causes of congestion on the major routes in their areas.  Further funds will be available next year provided the areas continue to exceed their target performance.

The latest awards follow the publication of statistics this month that showed that congestion had fallen by an average of 5.5 per cent across the 10 largest urban areas between the baseline (a mixture of 2004-05 and 2005-06 data) and 2008-09.

Notes to editors

1. Under the Comprehensive Spending Review 2007 the Government has a Public Service Agreement which the Department leads on: Delivering reliable and efficient transport networks that support economic growth.

2. Underpinning this target is an indicator regarding the journey time on main roads into urban areas.  This states:
By 2010-11 the ten largest urban areas in England will meet the congestion targets set in their local transport plan relating to movement on main roads into city centres. These are London, Manchester, West Midlands, West Yorkshire, South Yorkshire, Tyne and Wear, Merseyside, West of England, Nottingham and Leicester. The target will be deemed to have been met if, on target routes in these areas, an average increase in travel of 4.4 per cent is accommodated with an average increase of 3.6 per cent in person journey time per mile.

3. It was announced in 2006 that up to £60 million will be available over four years through the Urban Congestion Performance Fund to encourage and incentivise the local authorities in these 10 areas to outperform their own 2010-11 congestion targets, on which the indicator is based.  These funds have so far been nominally allocated between the ten authorities based on their contribution to the national target.

4. The first tranche of performance-related payments from the Fund was announced in July 2008, with tranche two payments announced in February 2009. Today the allocations for tranche three have been announced. Payments will be split between this and the next financial year.

5. The relevant figures are shown in the attached table.

6. On 4th February the Department published statistics for 2008-09 for each urban area to replace the provisional estimates that were published in November 2009. These data showed that the average person journey time across all the target routes has improved by 5.5 per cent between the baseline (which uses data from both 2004-05 and 2005-06) and 2008-09.  The average level of travel fell by 0.8 per cent across all the target routes over the same period.
7. In the London area, the average journey time fell by 6.9 per cent, while the average level of travel increased by 5.8 per cent.

8. The table below shows the 10 urban areas with their 2010-11 targets and 2008-09 performance (see attached table).

9. The tranche 3 payments are based on these data.  To incentivise the areas, payments are based on the extent to which they have exceeded their own journey time targets.  After a fixed amount is allocated, areas can receive additional payments depending on how much they have exceeded their targets up to a maximum amount.  All areas received at least 50 per cent of their maximum allocation.

10. It should be noted that percentage changes less than 2 per cent are unlikely to be statistically significant, and so may not be indicative of real changes.

11. A further £15 million will be available across the ten areas in the next financial year.  All areas will be eligible for payments, which will again be allocated on the basis of the local authorities exceeding their expected performance targets.

12. There are 166 routes covered urban congestion PSA indicator. Maps and route start and end points can be found on the Department’s website at:

13. Areas covered by urban congestion targets

The following list shows the local authorities and other delivery partners involved in each area’s congestion target. London: TfL


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