The money for 2000-2001 - known as the Local Transport Settlement - will largey go on building new bybasses but a part of the £250 million for integrated transport schemes will be spent on cycling.
This is the second year of a three-year package worth £2.4 billion, which includes £755 million of additional expenditure.
Two of the biggest non-car schemes are the Scarborough Integrated Transport Scheme (£16.9 million) and the West Bromwich Town Centre Strategy which includes a new bus station and improvements for pedestrians and cyclists at a cost of £6.4 million.
Announcing the settlement, new Transport Minister Lord Macdonald said: "John Prescott this week outlined his 10-year vision for dealing with Britain's transport and traffic logjam. At the heart of this is the vital role played by local people. We know that local problems are best tackled at local level...we have increased funding for public transport schemes, including walking, cycling and safety projects, together with road improvement projects."
Lord Macdonald added that there was also an extra £18m package for certain local authorities to help improve public transport and cycling before the possible introduction of congestion charging and workplace parking schemes.
The following list of councils are those who have expressed an interest in introducing congestion charges and workplace parking charges. If your shop is in one of these areas, expect cycling to rise further up the transport agenda in the next 12 months:
Bristol City Council
Derbyshire County Council
Nottingham City Council
Cambridgeshire County Council
Durham County Council
Cheshire County Council
Milton Keynes Borough Council
Reading Borough Council
Hampshire County Council
Leeds City Council
The Metropolitan District Councils of Birmingham, Dudley, Sandwell, Walsall and Wolverhampton
The Metropolitan District Councils of Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford and Wigan.