A £67M funding boost to the Sustainable Distribution Fund has been announced in a bid to help hauliers and freight operators lower emissions, cut road congestion and reduce running costs.

The money is to be targeted at increasing the use of rail and water transport and supporting schemes such as Freight Best Practice – which is to have its funding increased from £1.2M to £1.5M a year – that support the elimination of more than 1M lorry journeys each year.

Between 2005 and 2006 the freight industry saved £83M with the help of the scheme and saw CO2 savings of 240,000 tonnes, according to the Department for Transport.

Van Best Practice is to have its programme funded until 2011, with funding doubled from £300,000 to £600,000 a year.

Transport minister Jim Fitzpatrick said: ‘As more freight is transported by rail or water, it will bring clear benefits for the economy, the environment and other road users.’