The money will fund a range of improvements, including new road safety measures, better street lighting, road maintenance, park and ride facilities and cycle lanes.

This year's investment delivers funding for 2007 and 2008. Some of this year’s money is awarded according to the performance of local authorities in delivering better transport over the first five-year Local Transport Plan period and the quality of their plans to improve transport over the next five years.

One example of the success in the North East highlighted in the review is the £9mPark and Ride scheme in Durham. This has made public transport more attractive to commuters and visitors and reduced demand for long-term parking.

This investment is in addition to funding for major transport projects in the North East for 2007 and 2008 and 2008 to 200909, worth £87m, which the government announced earlier this year as part of the Regional Funding Allocation process. This included a £4.7m road safety grant. The grant means more money and flexibility for local authorities to deliver safer roads.

Transport Secretary Douglas Alexander said:

“The Government has invested more than £9bn in local transport across the country over the last six years.

”We have seen sustained progress in reducing local road casualties. The condition of many local road networks is improving. Better infrastructure for buses, cyclists and pedestrians has been put in place so local transport is making a contribution to more sustainable development and economic growth.”