Purpose

Cabinet is asked to approve Surrey County Council’s Local Transport Delivery Plan (LTDP) and the proposed allocation of transport funding for the period 2026/27 to 2029/30, including adoption of the proposed mixed capital investment approach for the remaining Local Transport Grant and Active Travel funding.

Cabinet is also asked to approve submission of the LTDP to the Department for Transport by 31 October 2026, delegate authority for minor adjustments to Local Authority Bus Grant allocations were agreed through the Enhanced Partnership Board, and note the ongoing performance, assurance and reporting requirements necessary to secure and retain up to £264.8 million of transport funding for Surrey and its successor authorities under Local Government Reorganisation.

Decision

RESOLVED:

1. That Cabinet adopts the “mixed capital investment approach” for the remaining consolidated Local Transport Grant (LTG) funding and Active Travel Capital funding as set out in the draft LTDP March 2026 submission.

1. That Cabinet approves the submission of the Local Transport Delivery Plan in response to the DfT’s consolidated Capital & Revenue transport funding allocations to be formerly submitted as the councils LTDP 2026/27 submission in October 2026, as per DfT required timelines.

1. That Cabinet recommends that delegated authority be given to the Director for Highways, Transport and Network Management in consultation with the Cabinet Member for Highways, Transport and Economic Growth for any minor changes to the allocation of the Local Authority Bus Grant (LABG). Where those changes have been agreed at the Enhanced Partnership Board in advance.

1. That Cabinet notes that Cabinet has already approved the 2026/27 Highways Maintenance Capital Grant including £5.17m allocation from the Local Transport Grant towards maintenance.

1. That Cabinet notes the ongoing requirements to comply with new DfT delivery, performance & assurance requirements, ensuring full alignment with both Local Transport Plan & National Transport Outcome Framework metrics.

1. That Cabinet notes that the programme within the delivery plan is required to be updated for submission to DfT annually thereafter, including ongoing performance reporting. This allows successor authorities to make changes to reflect their priorities from 2027/28 onwards in discussion with the DfT.

1. That Cabinet notes the future splits of expenditure and grant funding between the new East and West Surrey Councils quoted within this report and Annexes 1 and 2 have not yet been finalised. They are based upon current working assumptions so could be subject to change.

Reasons for Decisions:

DfT has set out consolidated 3-year revenue funding and 4-year capital funding for transport in the period 2026/27 to 2029/30 totalling £265.2m. Funding after the first year is indicative and is subject to change based on discussions with the DfT. 

All Local Transport Authorities (LTAs) are required to submit annual progress reports.  This guidance has yet to be fully published.

A “mixed capital investment approach” supports balanced delivery across priorities and aligns with DfT expectations for outcome-focused programmes to support growth, greener, safe and healthier transport and improving transport for people.

Should the Surrey Enhanced Partnership Board agree to revise the allocations for Bus Grant within the current financial year, the delegated authority ensures the timely delivery of priorities or reprioritisation of activity while retaining Member oversight through reporting and scrutiny. The Cabinet Member can still request that the decision be referred upwards to Cabinet and to Council.

(The decisions on this item can be called-in by the Communities, Environment and Highways Select Committee)