THE Department for Transport’s lack of clarity over how much risk it is willing to take through innovation funding creates missed opportunities, the public spending watchdog has found.

The department plans to spend about £1.1 billion on innovation between 2022-23 and 2029-30, 72 per cent of which relates to decarbonisation programmes.

But a report by the National Audit Office said that the department lacks a strong process for prioritising investment in pioneering schemes, with departmental officials identifying a risk-averse culture as a key barrier.

The department has worked to fix this, including by setting up a central innovation team, but “still has more to do to embed a culture of innovation across the organisation,” according to the report.

The audit office warned that successful innovation will be necessary to address the challenges of decarbonisation and has recommended that the department should better define its risk appetite and more actively co-ordinate innovation activities across transport modes.

A department spokesperson said it would consider the auditors’ recommendations as it shapes the next phase of its work.