Monies will be directed at physical infrastructure to improve the circulation of traffic in urban areas, as well as improved public transport access. The fund will also support new housing and workspace development and help to regenerate heritage high streets.

Local areas will be asked to set out proposals by next spring and detail specific improvements that will compete for funding. Bids will be taken forward in the summer to work up detailed business cases.

“Our high streets are under pressure as never before as Britain embraces online shopping – and they need to adapt,” the Chancellor said on Monday.

Philip Hammond also announced a one year extension to the Transforming Cities Fund to support transport projects in English cities until 2023; providing an additional £240M to six metro mayors for investment in their areas. The Budget also included a further £37M to support the development of Northern Powerhouse Rail.

In addition, the Chancellor pledged £90M from the National Productivity Investment Fund to create ‘Future Mobility Zones’ to trial new transport modes such as smart buses, services and digital payments.

He also announced that the Government will invest £291M from the Housing Infrastructure Fund for improvements to the Docklands Light Railway to support the building of 18,000 new homes in east London.

Also on Monday, the Government responded to a National Infrastructure Commission report into the Cambridge / Milton Keynes / Oxford arc by confirming that a new company has been formed to accelerate delivery of a central section of railway between Bedford and Cambridge.

He also used his speech to say that he will abolish the use of the Private Finance Initiative and PF2. Use of the funding mechanism had previously been considered for the Lower Thames Crossing and the A303 improvement.

Responding to the £90M creation of Future Mobility Zones, consultant Arcadis market intelligence lead for manufacturing and technology Natalie Sauber said: “Smart transport solutions present a huge opportunity to radically transform how we live, work and travel. It is reassuring to see the Government take another important step in its campaign to embrace the next generation of citizen driven mobility.”

(Photograph: Richard Vince and licensed for reuse under this Creative Commons Licence)