Transport Secretary John Prescott yesterday unveiled Transport 2010, a £180 billion public and private funded transport package.

Prescott's package aims to reduce congestion and boost rail, bus and tram services over the next ten years.

Transport 2010 accepts the prosperity of the South East has created severe congestion and urgent action is needed. The action plan includes widening key roads, building bypasses, more bus services, a huge investment in rail services, park-and-ride and provision for walking and cycling.

Travel by car, train, coach or bus has reached crisis point in many parts of Britain due to congested roads, poor rail networks and inflated costs.

Nowhere is this more apparent than in the South East of England where the prosperity of business is threatened by poor roads and towns becoming gridlocked with cars and unreliable public transport.

Mr Prescott has promised £132 billion of public money for transport improvements, with the rest being sought from the private sector.

It includes £60 billion for railways, £59 billion for roads and nearly £26 billion for local transport schemes.

The new Strategic Rail Authority would get £7 billion to help deliver the Government's goals.

Mr Prescott said the programme also included £59 billion to modernise local transport, with new investment in bus services.

The Government hopes the packages, in response to local authority bids, will lead to a six per cent decrease in congestion over the next ten years.

While the principles behind the announcement were welcomed by trans-port bosses in Sussex, they will reserve their jubiliation until the finer details of funding are revealed for their individual Local Transport Plans, currently being submitted.

One of the key roads in Sussex earmarked for bypasses and improvement is the long-suffering A27.

Work on the multi- million pound Polegate bypass is due to start next month, the largest road building scheme in East Sussex for several years, and this has been included in Mr Prescott's £132 billion bonanza.

It is hoped the road, which will cost an estimated £17.2 million, will dramatically ease congestion through Polegate and provide a safer, faster route to Eastbourne in 18 months, when it is due to be completed.

A study will also focus on the A27 between Worthing and Lancing, and improvements at Junctions 2 and 12 and the M27 Chichester are scheduled for completion by March 2002.

Studies into access to Hastings, bypasses at Wilmington, Selmestion and Arundel and road improvements on the A27, A259 and A21 will also be considered.

Improved rail services to London, including electrification and dualling of the Hastings to Ashford line; an Ore-Bexhill 'metro' service with a new station at Glyne Gap in East Sussex; improved rail links between Hastings and London; and improved bus services on the A259, A21 and A26 will also be considered.

On the railways, the key moves are to reduce overcrowding on commuter services to London and increase capacity on the Brighton mainline.

A major bus improvement scheme in the Crawley/Gatwick area could result in one of the most advanced bus systems in Europe - Fastway.

Harold Hall, cabinet member for Strategic Environmental Services at West Sussex County Council, said: "It is great news the innovative Crawley Fastway scheme has also been highlighted by the Government, something we expect to see recognised in the bid made in our Local Transport Plan."

Mr Hall said he hoped the bypasses at Arundel and Worthing and Lancing would feature in the 30-strong list of national schemes and noted that the Horsham to Capel section of the A24 was recognised in the local list.

He also said the A23/M23 Gatwick Area Study should consider the strategic value of the A24.

Mr Hall added: "We welcome the news that £30 billion is to be made available for improving the condition of local roads, bridges and street lighting, although how large a slice of that money we receive remains to be seen.

"We also welcome further study of the south coast railway service. It is of economic importance to the county as a link to other south coast towns and to the Channel Tunnel.

"We also recognise the importance of Thameslink 2000 in providing transport links to towns throughout the county and to Gatwick."

East Sussex County Council, which hopes to see a wealth of transport improvements - particularly in the Hastings area, also welcomed the announcements.

Bob Wilkins, director of transport and environment, said: "More money must be good news and we hope this will mean a more generous settlement for our Local Transport bid which will be with the Government at the end of this month."

He added: "We will be looking closely at the details, but it could be good news for our transport infrastructure.

"We hope to have more money to spend across the county on public transport and important highway schemes."

Mr Wilkins said the council wanted to see a go-ahead for bypasses to Bexhill and Hastings and improvements on the A21 linking Hastings, the M25 and London.

He said he would also expect a study commissioned by the Government into transport links between Southampton and Folkestone to add backing to the roads programme improvements between Lewes and Polegate, dealing with bypasses to Wilmington and Selmeston and improving the section between Southerham and Beddingham, where long delays are caused by the rail level-crossing.

Mr Wilkins added: "Very important at the moment is looking after the road network we currently have and we are optimistic this announcement will mean more money for road maintenance."

Environmental groups greeted the announcement with mixed feelings.

Felicity Tanous, transport spokesman for Brighton and Hove Friends of the Earth, said: "We need the massive investment in public transport before they start doing anything to the countryside.

"If the motorists can see that there is really excellent public transport, then we will get many more out of their cars.

"I don't think we particularly want to see bypasses going ahead, although roads need to be made safe and some of the maintenance has been neglected.

"However, the more road choice there is, the more it encourages people to drive."

She said park-and-ride schemes were not the answer because the lure of easy parking persuaded people who might otherwise have left their cars at home to take to the roads.