This sounds very promising and it’s clearly in step with the government’s overall policy programme, which suggests it will happen in some form.
I especially like the hint that they’d redirect some of the capital funding earmarked for new roads to walking and cycling, (‘Asked about the £16bn of trunk road projects, […] Haigh said: “We’re looking at all capital projects, and where that money should be best spent.”’).
Ultimately, we’ll have to wait for the outcome of the transport infrastructure spending review before we know whether this is anything to get excited about.