Centralised Treasury control over transport spending is constraining regional growth, according to findings from the Institute for Public Policy Research (IPPR).
The report argued that city regions remained dependent on central Government approval and short-term funding rounds to deliver major transport schemes, even where there was strong local backing and a clear economic case.
A lack of upfront, reliable funding was identified by IPPR as a key barrier, limiting mayors' ability to plan and finance long-term infrastructure.
IPPR called for greater devolution of transport funding and approval powers, alongside stable local revenue streams, to enable mayors to plan, borrow and deliver infrastructure with greater certainty.
Aditi Sriram, an economist at IPPR and author of the report, said: ‘Transport investment is one of the most effective ways to boost productivity and long-term growth, but the current system makes it far harder than it needs to be.
‘When cities create growth through better transport, they should be able to reinvest it locally, not lose it to the Treasury.'
West of England mayor Helen Godwin, a principal member of the Urban Transport Group, said: ‘Further empowering mayors will accelerate our ability to deliver the major projects that we know our areas need, boost productivity and drive greater economic growth.'
