A Government minister has said council chiefs need to cut the cost of key transport schemes to improve the chances of securing funding.

The future of Bath and North East Somerset Council's £57.5 million Bath Transportation Package, which includes the Bus Rapid Transit project and a new park and ride site at Bathampton, is in the melting pot because of the public spending review.

It is among 22 schemes fighting for a share of £600 million, although another 34 schemes could enter the bidding war, bringing the total number vying for the funding to 56.

The Department for Transport has had its capital cash slashed by 11 per cent in real terms and councils will be challenged "to consider the cost, scope and possibility of local funding when bidding".

The Government says the competitive process will ensure the greatest possible number of schemes, providing the best value for money, will be able to proceed.

Transport minister Norman Baker told the Chronicle: "If you can get the cost down, that puts you in a better position to compete for the limited funds we have got."

He said the previous Labour government's funding plans had been "completely unrealistic".

B&NES has confirmed that it is revising its bid and will be looking for ways to cut costs, although no decisions have been yet about exactly how this will be achieved.

A spokesman said: "This investment is crucial if the council is to provide urgently needed infrastructure that will enable the development of key employment sites across the district. Given the current pressures on public finance and the prospect of competing with 21 other projects for a development pool of £600 million, it is important that the revised bid offers substantially the same benefits for lower levels of funding by the DfT.

"The council will be discussing options with DfT as the revised bid is developed but those elements which are critical to supporting jobs growth, releasing key development sites and reducing traffic congestion must remain."

The spokesman added that it would also be looking for "alternative sources of finance", including the option of the council itself supplying some of the money.

He said the key planks such as the BRT and the Bathampton Meadows scheme would not be scrapped.

"If we present a substantially different scheme we will undoubtedly lose development pool status and the DfT funding. The DfT has previously confirmed in writing that it sees the BRT as an integral part of the Bath Transportation Package."