Chapter 9 - Making choices locally and regionally CM 6234
We have choices nationally, regionally and locally when we make decisions about the planning, delivery and management of our transport networks. We need to make smarter choices, ensuring that they are made at the right level and with the participation of other stakeholders.
The challenge
9.1 Decisions taken at the national, regional or local level, such as investing in a bypass, supporting a rail route or improving bus services, influence the choices that people can make on how and when to travel, where to live and work, and the markets that businesses operate in. The challenge is to ensure that transport decisions are not viewed in isolation. They need to be:
- clearly linked to other decisions, such as the location of new housing and of new employment sites;
- integrated between different forms of transport;
- informed by the best possible evidence; and
- prioritised and targeted to where investment will have the greatest benefit.
9.2 We need to make the right choices at the appropriate level. As far as possible, decisions should be made at the local level, close to those whose lives they will affect. But this needs to be balanced with the impact at the regional and national level, and with the benefits that can be gained from taking advantage of economies of scale.
9.3 Underpinning all of this is the need to get best value for taxpayers and fare-payers. There will be choices to be made on both the level of investment and amount of public subsidy which are desirable and affordable, and on where those resources should be targeted.
Exploiting the potential of new technology
Over the last century technological innovations have revolutionised the way that people travel. These changes will continue over the coming decades. Though private industry will provide most of these changes, Government does have an important role to play, and the choices we make will influence the technologies that are developed and used. Our strategy is to exploit technology by acting:
- as enabler - by promoting innovation. As a country, we are well placed to be at the forefront of transport technology innovation;
- as promoter - by aligning policy and technology development, driving technology improvements through policy changes - for instance, improving vehicle fuels through standard setting; and
- as researcher - by anticipating the future, developing our understanding of long term risk to inform policy making and procurement, and building better information sources.
Where we want to be
9.4 We will improve the current arrangements for making decisions on transport. Central to this will be giving regional and local bodies more influence to ensure that transport services can be tailored to local needs and preferences. Currently their influence is largely limited to investments by local authorities. This will be progressively extended, initially to regional priorities for some strategic road schemes, and potentially to decisions on regional railways.
What we have achieved
9.5 We have already devolved responsibility for many transport decisions.
9.6 In London we have devolved responsibility to the Mayor. This allows the Mayor to exploit economies of scale, prioritise major investment decisions across different modes of transport - without reference to central government - and move towards integrated ticketing, pricing and travel information.
Devolved decision making in London
The Mayor has extensive responsibility for transport in London, including both strategic policy and day to day management. Under the Greater London Authority Act 1999, the Mayor is required to develop and implement a transport strategy for London, in consultation with the Greater London Assembly and the 33 London boroughs. Through Transport for London (TfL) the Mayor has direct responsibility for London Underground, buses, taxis, the strategic road network, light rail and river services. Boroughs remain responsible for local roads. Rail services are currently outside the Mayor's direct control but the Government wants to see greater responsibility for commuter rail delegated to the Mayor.
Transport for London came together from 15 separate predecessor organisations and has allowed the creation of an integrated transport strategy for London.
TfL has an annual budget of nearly £5 billion derived from fare revenue, central government grants, congestion charge income and council tax precept. The Government's grant to TfL doubled between 2000-01 and 2004-05 to over £2 billion a year. Improvements delivered as a result of the extra resources and better planning include:
- a 31 per cent increase in bus patronage since 1999 - the highest number since the 1960s;
- bus mileage higher than at any time since 1959 and over 2,600 new buses in service;
- stable long term funding for the Tube through the PPP, which over the next 16 years will result in improved journey times, a more reliable service and cleaner and more attractive stations and trains;
- a world leading congestion charge scheme which has reduced traffic in central London by 16 per cent and congestion by 32 per cent - made possible by a significant increase in bus capacity;
- smart ticketing (Oyster Card) which allows travellers a choice of payment options for journeys by public transport; and
- the London Traffic Control Centre - which is manned by the police and TfL personnel, monitoring traffic and co-ordinating responses to congestion.
London is the only major city in the world to have achieved a shift away from car use. Over the last four years public transport usage has increased by more than 16 per cent, whereas car travel has decreased by 4 per cent.
Housing growth - Thames Gateway and the other growth areas
The Government's Sustainable Communities Plan(1) published in February 2003, set out our position on housing growth and the important role transport must play in facilitating sustainable growth. The plan identified the Thames Gateway and three other 'growth areas', Ashford, Milton Keynes-South Midlands and London- Stansted-Cambridge-Peterborough. Alongside London, these areas have the potential to provide an additional 200,000 homes above current planning targets.
The Government has already committed more that £600 million to transport projects in the Thames Gateway and over £2.1 billion in the other three growth areas as well funding separately the Channel Tunnel Rail Link and the West Coast Main Line Upgrade, which will also benefit the growth areas. We have created a new Community Infrastructure Fund to provide an extra £200 million over the spending review period. This will support additional transport infrastructure specifically required to facilitate the housing plans in the sustainable communities growth areas. Outside this fund, further projects will be considered, alongside other priorities, as part of the Government's usual process for considering transport schemes.
The Barker Review of housing supply(2) recommended a further step change in the provision of housing, especially in areas of high demand. This would put home ownership back within reach of those with moderate incomes in areas of high demand and tackle a problem which could otherwise hinder macro-economic stability. The Government accepts the need for more provision, and is currently taking forward the issues raised in the report, including the implications for transport infrastructure.
9.7 Regional Spatial Strategies, which link together policies and priorities for housing, transport, the environment and economic regeneration, are being strengthened. We have worked closely with regional partners in identifying the key strategic investment required to deliver housing and employment growth in the Thames Gateway and other growth areas (see text above).
9.8 At the local level we have introduced five-year indicative funding allocations for local authorities, to encourage longer term planning of integrated transport. The introduction of Local Transport Plans has given authorities much more autonomy in decision making. It has also provided real incentives for better planning and delivery of transport.
9.9 In our new guidance on Local Transport Plans we are asking local authorities to address the key issues of accessibility, congestion, road safety and air quality. Accessibility planning will be a key element of the next Local Transport Plans, helping to ensure that people, particularly those from disadvantaged groups and communities, are able to access the jobs and services that they need. This is not just about improving transport, but involves co-ordinating decisions on transport, land-use planning and service delivery to maximise accessibility.
9.10 We have also made significant progress in developing effective ways of assessing transport schemes(3) (see text below).
Making informed decisions - appraising transport schemes
The New Approach to Appraisal (NATA) is a process that explores the potential for different solutions to transport problems. The choice of a preferred option takes into account a wide range of factors reflecting the Government's five objectives for transport: environment, safety, economy, accessibility and integration. Results are summarised in an Appraisal Summary Table (AST) that is presented to Ministers to inform their decisions. We are continuously improving our appraisal methodology in the light of evidence to ensure that we measure social, environmental and economic impacts as accurately as possible. Further information on NATA can be found on the Department's Transport Analysis Guidance web site at www.webtag.org.uk.
In addition to the monetised impacts, presented in a benefit/cost ratio (BCR), the AST also takes into account impacts which are difficult to present in monetary terms. The combination of both allows an assessment to be made of the proposal's value for money (VfM).
As part of continuing work to maximise the effectiveness of investment in transport, we are developing and sharing our analysis of relative VfM in transport appraisal and decision making. The objective is to give scheme promoters and decision makers a shared understanding of the opportunity cost of different investment choices and the VfM considerations that will influence Ministerial decisions on public spending.
When allocating resources, Ministers have to prioritise. Value for money is an important consideration. However, it is only one of a number of key factors, including the appropriate balance of investment across the country, deliverability, and wider objectives.
What we are going to do next
Regional choices
9.11 The key at the regional and sub-regional level is to provide a financial framework that will help the regions come to informed views on strategic choices and investment priorities. Decisions about planning for new housing, large regeneration schemes, and the associated transport, need to look well beyond the short term. We will begin to provide indicative funding guidelines for beyond the Spending Review period of three years for components of Departmental programmes that support regional development.
9.12 Such guidelines will separately identify long term indicative budgets within key programmes, potentially including those relating to:
- Regional Development Agencies;
- housing; and
- transport of regional significance.
9.13 For transport, this might initially cover budgets for:
- the larger schemes taken forward by local authorities; and
- schemes on the strategic road network which are of principally regional or sub-regional importance rather than of national significance.
9.14 Consideration will also need to be given to extending the budgets to cover buses and regional railways.
9.15 Having established such guidelines, the Government would invite key regional and local stakeholders to help shape an integrated programme. This would support a far more rigorous assessment of the costs and benefits of different options in each region over the longer term.
9.16 Guideline budgets would be indicative and would not be a guarantee of funding. The regular Spending Reviews would remain the basis for budgeting. As the process developed, the Government would take account of regional and local stakeholder views at each subsequent Spending Review and reflect these in the disposition of funds across different elements of the transport programme.
9.17 It will be important to consider to what extent greater flexibility might be introduced into these budgets over time. The aim should be to move towards deriving bottom up targets reflecting regional choices. For example, such choices might include a decision in any one region to prioritise reductions in the levels of congestion on key routes, the numbers of new houses to be built, or economic growth.
9.18 We will be working up the details of such an approach. Subject to consultation, we intend to publish indicative guideline budgets for the English regions in Budget 2005.
Local choices
9.19 The Government is committed to continuing to fund local transport directly through block allocations to local authorities. In addition, we will establish a new Transport Innovation Fund to complement this approach by providing a contribution to projects and initiatives, across all forms of transport in England, that deliver significant wider productivity gains or which promote innovative approaches. We will consult on the operation of the new fund with a view to making initial allocations in the next threeyear Spending Review, which is due to take place in 2006.
9.20 We have been working with local authorities to develop shared priorities for transport. These cover improving accessibility and public transport while reducing congestion, and improving air quality and safety. These each need to be seen as part of the wider local agendas to promote social inclusion, environmental protection and economic growth.
9.21 We will also be providing guideline allocations for smaller schemes to give local authorities a framework for their next local transport plans. These will be published in the autumn.
9.22 We have published more detailed guidance on the process and timetable for the next round of Local Transport Plans in parallel with this strategy.
Rail
9.23 The new rail structure will allow decisions on the provision of rail services to be taken at a more local level where that is appropriate. The Welsh Assembly Government will take on more direct responsibility for passenger services. The Scottish Executive will directly manage the ScotRail franchise, and may take an extended role with regards to infrastructure in Scotland. In England, Passenger Transport Authorities in the main metropolitan areas will be given the right to buy increased services, and flexibility to transfer funding between rail and other modes of transport. Transport for London will also have an increased role in specifying services in the capital. And finally, we will promote the role of Community Rail Partnerships in improving the management of local branch lines.
Departmental reform
9.24 To support the changes in policy and delivery outlined in this document the central Department for Transport will change as described below.
Departmental reform
The Department for Transport plans to make its headquarters smaller and more flexible to become more tightly focused on business priorities. It needs staff with the skills and experience for the job and with systems that ensure the right people are in the right place at the right time.
Staff skills and numbers
The Department currently plans to close about 10 per cent of posts in central London and expects to shed another 10 per cent in the medium term as a result of efficiency initiatives. Because of changes in the way technology is used, the profile will also change with relatively fewer support staff. A number of key senior professionals have been recruited into the central Department and professional capacity is being enhanced across the organisation.
Flexibility
Key to the future of the Department is a move away from traditional, fixed management structures at the centre. It needs to continue to get better at focussing on priorities and better at matching people, and the skills and experience they bring, to the tasks that need to be done. It will move much more towards flexible, project based working. A framework for deploying staff flexibly is being piloted with the intention of rolling it out in 2005.
Business planning and management
The Department's business plan focuses on the delivery of key targets and objectives. Project and programme management techniques are being used increasingly to handle work in a structured way.
Conclusion
9.25 Central Government will improve arrangements for making its decisions on transport. Our strategy will strengthen this by giving regional and local stakeholders more influence, building on the principles emerging from the Government's review of devolved decision making(4). And we will ensure that decisions on transport are informed by the best possible evidence and that they are made alongside other decisions - such as the location of housing - at the national, regional and local level.
(1) Sustainable Communities: building for the future, Office of the Deputy Prime Minister, February 2003, available from the ODPM web site at www.communities.odpm.gov.uk
(2) Review of Housing Supply - Delivering Stability: Securing our future housing needs, Kate Barker, HM Treasury and Office of the Deputy Prime Minister, March 2004. Available on the HM Treasury web site at www.hm-treasury.gov.uk
(3) In addition, all transport plans and programmes are screened to see if the Strategic Environmental Assessment Directive 2001/42/EC applies or whether an alternative environmental assessment is appropriate.
(4)
Devolving Decision Making: meeting the regional economic challenge: increasing regional and local flexibility, March 2004, HMT, ODPM, DTI.
