Government plans to abandon the current Congestion Transport Innovation Fund (CTIF) have been welcomed by the Freight Transport Association (FTA).
Transport minister Sadiq Khan this week launched the new Urban Challenge Fund in place of the CTIF, with the aim of encouraging more bold and innovative transport strategies.
As part of the new scheme, local authorities and cities will only qualify to receive funding if they can show their plans meet a range of criteria.
This includes improving journey choice and safety, tackling congestion, lowering carbon emissions and promoting healthier lifestyles through better air quality.
Under the plans, councils will no longer have to introduce local road pricing to be eligible for funding.
FTA head of urban logistics policy Gordon Telling expressed his support for the initiative, which he said will help encourage the improvement of transport in urban areas.
He added that the scheme will bring about more innovative ways for local councils to make improvements without spending "a significant slab of public cash".
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