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A planned £20 million fund for local authorities to implement advanced traffic control technology has been cancelled by the Government.

The Intelligent Traffic Management Fund (ITMF) was established by the previous government, but the Department for Transport (DfT) recently informed authorities that this has now been axed. In the letter from Anthony Ferguson, the DfT’s deputy director, the cancellation was attributed to the need to cut back after inheriting “a very difficult position” from the previous administration.

The cash, which councils had already bid for, would’ve allowed English highway authorities to invest in technologies like machine learning and artificial intelligence to help manage traffic flow. It was part of a wider £70 million government funding scheme announced in autumn 2023.

Mr Ferguson acknowledged that the news would come as a disappointment, but stated that the DfT would continue exploring opportunities to utilise the new technology in the future.

Max Sugarman, chief executive of Intelligent Transport Systems UK, said the cancellation is a huge blow: “The ITMF was directly aligned with the Department for Transport’s six priorities and the chancellor’s aims to deliver public services more efficiently, as set out in the Budget.

“So this cancellation is not only a blow to the traffic technology sector and ITS UK’s membership but also an own goal for the Government. We would urge them to now set out a forward plan for how they will work with the sector to support a more effective road network, building upon the positive vision they have for the transport system.”

Meanwhile, a spokesperson for ADEPT, which represents local authority place directors, said: “Local authorities are committed to finding innovative, technology-driven solutions that support sustainable traffic flow and improve network management – this fund would have helped deliver this ambition.”

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