Good quality transport is essential to the future success of cities across Britain. And strong transport links will mark Britain out as a good place to do business and allow us to compete globally.

That is why we have asked former BA chief Rod Eddington to help us to anticipate the pressures of the next 20 to 30 years. We have a big opportunity for once to be one step ahead of the game.

We are already doing a lot to improve transport. By next year we will be spending 60 per cent more than in 1997. Our spending will continue to grow – on average by 2.25 per cent each year over and above inflation through to 2015.

But, as ever, investment needs to be matched with real improvements to the way in which things are managed and run. We need to look at how we get more out of what we’ve got – on roads, for example – which is why road-pricing will play an important part in the future.

Of course road-pricing on its own will not solve all the problems we face. So we also need to make sure that the public transport system – rail, light rail, buses, park and ride – work together.

If you want to persuade people to leave their cars, they need to be sure that a bus or a train will get them to where they want to go. It’s got to be a reliable service, with a reliable timetable.

This is crucial in the case of buses, which are the backbone of our public transport system. Where they are integrated with the rest of the local transport infrastructure, they can give people what they want.

The Transport Innovation Fund also underlines our commitment to spend even more on comprehensive transport solutions which support productivity and growth in a region, and get town and city centres moving.

But this needs to be backed up by better management of the existing systems, and a more comprehensive approach to long-term planning across local boundaries. When you travel by bus or car, you don’t care who owns the bit of road you are on, or who owns the bus. You just want to get there on time.

And decisions on road, rail, bus and tram need to be looked at together by the same people, so that they can make sensible choices and decide on their priorities.

Decisions on how to deal with transport in the round are best taken locally, where you can take a sensible view on where money should be spent and how decisions on road, rail and light rail come together in one coherent transport plan. As part of that we need to look at how best we can deliver throughout the country.

Of course government has to set national priorities and direction. But local decision-making is also essential. Many transport decisions are best taken at that level rather than in Whitehall. But it is essential that when decisions are taken, they are looked at in the round.

The key to making this happen is to capitalise on the considerable wealth of ideas and enterprise in our towns and cities around the country, when it comes to taking decisions about how best to invest in transport infrastructure. This is one area that is currently being looked at through the work of city summits, where ministers from across government discuss with cities their 10-year plans for economic development.

We face big challenges in the future – but the opportunities are also there, provided we are bold now and get the right solutions in place.

Over four billion journeys will be made by bus this year, and our railways will carry over a billion passengers. These numbers will continue to grow in the future as our economy continues to grow, and the transport system needs to be ready to meet that growth.

We are putting the investment into transport, and the right plan is in place. Better decision-making will help us deliver what is needed.
The prize is a transport system that will meet the challenges of the future: good for business and enterprise, and giving passengers what they are entitled to expect.

Alistair Darling is secretary of state for transport.

This article is based on a speech to the Confederation of Passenger Transport on January 26.