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Leicester City Council has been allocated £59 million in Local Transport Grant funding for the four-year period beginning in 2026, following the Chancellor’s 2025 Spending Review. While detailed guidelines are yet to be issued, the long-term nature of the funding will enable the council to plan and deliver transport improvements and services up to 2030.
Additional Government grants for highways maintenance, as well as funding through the Bus Service Improvement Plan and Active Travel England to support walking and cycling, are expected to be confirmed later in the year.
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In the meantime, nearly £22 million in previously allocated Government funding will be used to deliver a number of transport projects across the city in 2025/26.
Over £9.3 million from the Bus Service Improvement Plan will fund the purchase of up to 48 new electric buses, supporting Leicester's ambition to achieve a fully electric bus network by 2030. The popular Hop! Bus service – a free, fully electric shuttle linking key locations around the city centre – will also continue to operate with ongoing support from the grant.
A further £12.6 million will be invested in a wide range of highways and local transport schemes over the next 12 months. These include major resurfacing projects on Melton Road and Aylestone Road, pedestrian crossing upgrades citywide, and improved access routes for major regeneration developments such as Ashton Green and the St George’s Cultural Quarter.
Other key initiatives include a new maintenance programme to replace street lighting columns and illuminated signs, the creation of a neighbourhood improvement fund for public realm projects, and enhancements to routes for walking, wheeling, and cycling at Orwell Drive, Newstead Road, Abbey Gate, and Knighton Drive.
The council's planned transport investment programme for 2025–26 will be discussed at the next meeting of the Economic Development, Transport and Climate Emergency Scrutiny Commission on Wednesday 25 June.
