The county was awarded a share of the £4.7 billion Local Transport Fund earlier this year, as the previous Conservative government diverted funds following the decision to scrap the northern leg of the HS2 rail project.
However, the region is yet to receive confirmation that the new Labour administration will still hand over that funding. The cash is set to provide transport upgrades in the county between 2025 and 2027.
Council Leader Amanda Hopgood warned taking away the much-needed funding would affect businesses and residents and “inflict significant harm on our economy”.
The Liberal Democrat councillor said: “We need clarity about the status of this vital funding for transport projects in County Durham. Every day that passes without that is time wasted that could be spent delivering schemes that can play transformative roles in helping people to access jobs, education and services, and unlock active travel opportunities that will allow them to lead healthier lives.”
Schemes which have been described as “ready for the green light” include sustainable transport infrastructure projects at NETPark in Sedgefield.
Cllr Hopgood added: “Only a few weeks ago, [North East Mayor] Kim McGuinness visited NETPark to celebrate its 20th anniversary and the progress of the Phase 3 development. The Mayor hailed its importance to the region and its future economic prosperity, but now a Labour Government appears to be considering a decision that will hold back growth on that site.”
While other parts of the region are receiving money from the City Region Sustainable Transport Settlement (CRSTS) to cover that period, 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 this year was intended to make up for that, with Durham then to be included in phase two of the CRSTS programme beyond 2027.
Labour has criticised the Tories, saying it announced several unfunded transport schemes and admitted difficult decisions are being made to prioritise investment. However, it did not confirm whether the County Durham funding would be delivered.
The County Durham coalition in charge of the council – made up of Lib Dems, Conservatives and Independents – have ministers to end the uncertainty.
“The Joint Administration of Durham County Council understands all too well the difficult fiscal decisions that the Government has to make, but taking away the £73m will have negative consequences for our residents and businesses in both the short and long-term,” added Cllr Hopgood.
“It will inflict significant harm on our economy and make future decisions for the chancellor and this county council even more difficult. We urge the Government to end the uncertainty and come clean with its intentions.
“More than that, we ask Keir Starmer and Angela Rayner to honour their commitment to devolving power to the regions and hand over the funds, so that we can get on with what needs to be done in County Durham.”
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The North East Combined Authority said it is continuing to work with the government for clarity on regionwide transport funding.
A Department for Transport spokesperson said: “We know how important public transport is to communities and we’re determined to invest in transport infrastructure which will drive local economic growth and opportunity in every part of the country.
“As part of this, we are boosting funding for highways maintenance and will provide an update on further schemes in due course.”
