Following a consultation carried out in late 2011, the Government has decided to allow lane rental schemes to be trialled by a small number of local authorities in England. Lane rental would involve the local authority applying a daily charge where street works obstruct traffic at the busiest times, providing a clear financial incentive for works to be carried out at less disruptive times.

The Government is now inviting applications from authorities wishing to operate ‘pioneer’ schemes, and has published guidance to interested local authorities. This guidance makes clear that the Government is prepared to approve up to three such schemes, in areas where the local authority has already sought to achieve the desired improvements through other means (including road works permit schemes). The Government has received an application from Transport for London and this is currently being assessed and considered.

Lane rental charges would need to be targeted on those streets where works cause the greatest disruption, and would need to provide a genuine opportunity for works promoters to avoid charges by carrying out their works at less disruptive times. Evidence from the performance of the ‘pioneer’ schemes will inform future decisions on whether lane rental should play a wider role.

Any revenues raised from lane rental will have to be used for purposes that will help to reduce the disruption caused by works – for example research and development into disruption-saving techniques and technologies.

Q&A

Lane Rental:

Q35: What is lane rental?
Lane rental would involve utility companies (and others undertaking street works) being required to pay a daily charge for the duration of their works. The charge would be paid to the local council (the “highway authority”).

Q36: How would it help?
A daily charge should encourage utility companies and others to complete their works more quickly and therefore with less disruption to road users and local communities. This is because every day’s reduction in the duration of their works would save them a day’s charges.

A well-designed charging system would also include exemptions or discounts from the daily charge when works are completed at less busy times. So by spending a bit more – say on overtime to get the job done at evenings or weekends – utilities and others carrying out works could avoid having to pay the charges.

Q37: Why can’t local authorities charge lane rental today?
Local authorities need legal powers in order to impose charges on others. New Regulations are needed – and these will set out things like the maximum charge rate that a local authority can impose.

Once the Regulations are in place, any local authority wishing to impose lane rental charges will need the approval of the Secretary of State for Transport. The Secretary of State will need to be satisfied that any scheme proposals will deliver a reduction in congestion and disruption that is large enough to justify the extra costs that would be involved for utility companies and others.

Q38: Does this mean lane rental will be happening all over the country?
Lane rental has not yet been proven to be a successful model in the UK. In the first instance, any lane rental schemes would need to be targeted just on the very busiest streets in a particular area – likely to include key junctions and other pinch-points, plus the busiest and most congested stretches of road. It is also envisaged that approval would be granted only for a very small number of trial schemes.

Evidence of the effects of any initial pilot schemes will inform future decisions on whether lane rental could usefully play a wider role.

Q39: What will happen to the revenues paid by utility companies and others?
The revenues would accrue to the local council responsible for the scheme – the ‘highway authority’. The new Regulations will need to set out what the revenues can be used for.

Q40: What will the new Regulations say? When will they be published?
The new Regulations will enable Lane Rental schemes to operate and were consulted on in the summer of 2011. The final version will be introduced shortly.

Q41: When will lane rental charging be up and running?
It will be for local authorities to develop proposals for lane rental, and submit them to the Secretary of State for Transport. We will be publishing guidance to explain what conditions will need to be met in order for a proposed scheme to be approved.

It will be possible to approve schemes once the new Regulations are in force – but this will depend on high-quality scheme proposals being submitted by interested local authorities.

Q42: Will there be lane rental in my area?
At present, the Department is only contemplating a very small number of local ‘pilot’ schemes, targeted on the very busiest and most congested streets. We cannot yet say where those places will be – this will depend on what proposals are developed by local authorities, and which of these are ultimately approved by the Secretary of State.