SWINDON could be left without the transport system it needs because of a change in Government policy, it is claimed.

Councils normally borrow money to help fund their transport plans, but changes in criteria mean Swindon could be stopped from doing this.

New rules mean that before giving local authorities approval to borrow, the Government will look at how much capital funding money used to pay for large scale projects like roads and school buildings - each has.

The more capital a council has, the less the Government will allow it to borrow.

Council leader Mike Bawden (Old Town and Lawns) said: "Swindon's seen as capital-rich. But for 2002 to 2003, only about £12 million is uncommitted and available throughout the whole council. This will severely curtail, if not stop altogether, this council's investment in its transport policy. This is hugely disadvantageous to all our urban regeneration plans."

The leaders of the council's three political parties say they will lobby the Government over the issue.

Coun Sue Bates (Lab, Gorse Hill & Pinehurst) said: "It's going to be extremely hard and can even jeopardise projects like town centre regeneration."

Coun Mike Evemy (Lib Dem, Eastcott) said: "They will take into account what capital we have got but we have got huge demands on our capital because we are a growing town. Schools needed in the northern sector are one example."

Investment in the local transport plan in the current year was £4.9 million. This was fully supported by Government approval to borrow the necessary funds.

The money was used to pay for projects like the North Swindon Orbital dual carriageway from Blunsdon to West Swindon which was due to officially open today. It is also used to fund park and ride schemes and cycle tracks."