ABSTRACT
British local authorities are not allowed to raise funds by means of local income taxes or sales taxes. Capital costs for public transport are considered for central government assistance under Section 56 of the Transport Act 1968. To be eligible, projects should be of sufficient size to justify spreading the costs beyond local users which as a general rule means projects costing more than £5 million. Grants are normally paid at 50% of the net cost after deduction of any net income and grants from other sources. The criteria for subsidy are set out in Department of Transport Circular 3/89. Some of the implications are explained in an article by myself in Surveyor 4/11 January 1990. Some public transport infrastructure will be eligible for assistance from the European Regional Development Fund. The contribution may be as high as 30% to 50% of the expenditure being made by the local authority or public transport authority.
