Manchester to get £1.4bn transport plan

A £1.4bn transport funding package for Greater Manchester has been unveiled by transport secretary Geoff Hoon.

The cash will allow the city to pursue most of the improvements proposed under the defeated £3bn congestion charge plans.

These include the so-called “Big Bang” extension of the tram system to Chorlton, Manchester Airport, Rochdale and Oldham.

The money will also pay for bypass schemes in Stockport and Mottram, a relief road in Wigan and more park-and-ride facilities in Greater Manchester.

Funds for the deal are understood to come from several sources. Small long-term council tax increases, around £2 per person a year will give the city’s Integrated Transport Authority more cash.

Greater Manchester’s 10 councils will then borrow against council tax increases ands raise more money for the scheme by handing over around 40% of the cash they receive from central government for transport projects.

The government will also allow the city to receive the transport funds it expects to receive in the coming years in one lump sum.

Some parts of last year’s congestion charge scheme are not included, such as increased yellow buses for schools and smartcards for travel on different types of public transport.

Chris Fletcher, deputy chief executive of Greater Manchester Chamber, said: “This announcement is great news for Greater Manchester. Following the TIF referendum in December, one thing everyone agreed on was that there was still a need for improvements to our transport infrastructure and the chamber has been keen to pursue how these needs could be met.

“The funding package is a huge step forward in making these proposals a reality. In the current climate this will have great benefits for the local economy not just in the creation of jobs but also long term economic growth.”