The Government should improve the way transport projects are funded as the current system of local authorities bidding for capital funding is 'costly and inefficient', according to a new report.

The Built Environment Committee has warned 'wasteful' bidding processes, cuts to bus services and inadequate transport planning processes are hindering the delivery of high-quality public transport services outside London.

The report calls on the Government to move towards a system of periodic block grants to encourage more coherent and long-term transport delivery.

It also urges the Government to urgently make a decision on funding for bus services beyond next March and formally link the production of Local Transport Plans with Local Plans.

Lord Moylan, chair of the committee, said: 'One of the immediate problems is the end of pandemic support funding for buses in March 2023, which could lead to bus cuts of up to 20% and risk a downward spiral of reducing demand. This would hit the poorest hardest.

'The Government should also improve the way transport projects are funded, by moving away from local areas bidding for competitive central government capital funding, which is costly, resource intensive and inefficient. Instead, there should be a system of more periodic block grants.'

Another recommendation of the report is for the development of a multimodal, multi-operator zonal ticketing system in each large town or city.

Cllr David Renard, transport spokesperson for the Local Government Association, said: 'Several councils already see the benefits of fare zoning in their areas. The benefits of fare zoning could reach many more people if the Government were to provide additional powers to councils.'