UK Government

Department for Transport: £620 Million government funding for councils to improve street lighting

Press Release   •   Feb 12, 2010 10:27 GMT

Seven local authorities in England will benefit from a total of £620 million of Government funding to install improved street lighting, Transport Minister Sadiq Khan announced today.

Residents in Durham, Stockton, Essex, Gloucestershire, Hertfordshire, Kirklees and Warrington are in line to benefit from Private Finance Initiative (PFI) funding which will enable them to upgrade their existing street lighting.  Better street lighting will help to improve road safety in these areas as well as helping to reduce crime.

Sadiq Khan said:

"Good quality street lighting means a reduction in crime and the fear of crime, less light pollution and a safer night time environment for everyone. I am very pleased that local authorities are using this Private Finance Initiative funding to deliver real benefits to their local residents.

"Partnerships like this provide vital investment in public services which can transform the experience of the travelling public whether they are walking, driving or riding."

These local authorities will now be asked to prepare an outline business case for a PFI street lighting scheme. Once this is approved by the Department and the Interdepartmental Project Review Group, the local authorities will start their procurement process.

Notes to editors

The following amounts have been bid for by the successful authorities:

Durham and Stockton - £125.47m
Essex - £163.86m
Gloucestershire - £80.183m
Hertfordshire - £139.8m
Kirklees - £65.8m
Warrington - £45.5

Street lighting & PFI

There are 30 Local Authority Street Lighting schemes that have been endorsed by the Project Review Group. A full list of endorsed Local Government PFI schemes can be located on the Communities and Local Government Ministers website

24 local authorities supported by Government PFI credits of £867 million have signed contracts to replace their time expired columns. A further 6 projects (covering 9 local authorities) are in procurement. These are in addition to the credits announced today.

PFI credits support the capital element of the project. They are funded through revenue support which is paid as Special Grant and calculated according to a formula set out in the Special Grant Report. Details on of the Special Grant Report can also be found on Department for Communities and Local Government website.

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