Merton’s transport budget will be slashed by more than £500,000 next year - despite overall investment in London’s road network reaching a record high.

The borough has been allocated £2.7m to maintain roads, improve cycle facilities and cut road deaths in 2009/10 - the second lowest of all London’s boroughs.

The figure is down from £3.5m in 2008/9, and £4.2m in 2007/8, even though Transport for London (TfL) will spend a recession-busting £168m across the capital next financial year, up £7m from 2008/9.

Cyclists and the environment will be worst effected by the cuts. Only £80,000 has been earmarked to improve one cycle route in Green Lane, Morden.

But £600,000 was allocated for expenditure on the borough’s cycle network in the present TfL budget.

Environmental lobbyist, Tom Walsh from Sustainable Merton, said: “This is hugely disappointing and flies in the face of all the green policies that politicians want to talk about.

“You can’t tug the rope at both ends. If you’re saying let’s reduce our carbon footprint by 80 per cent, you can’t then spend billions on projects like a new runway at Heathrow and then nothing on cycle provision.

“It’s sending out very conflicting messages to the people of Merton about the importance we’re placing on protecting the environment.”

But there will be some benefits from the funding settlement.

Merton Council will be awarded £100,000 to spend as it chooses on any local transport project, and £456,000 will go towards the repair of uneven surfaces, potholes and cracks in London Road.

A TfL spokesman said: “Local implementation plans allocations for the different London boroughs vary each year.

“The overall funding package is distributed across London to provide transport improvements in the capital in line with the Mayor's agenda.

“The amount of funding allocated to each borough depends on individual case and merit.”