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Reports:

10 Year Transport Plan - second assessment report

Chapter Three: Agencies and Structures for Delivery

Delivery of the 10 Year Plan itself falls largely to the main delivery agencies, the Highways Agency for the strategic road network, Local Government for the local road network, light rail and local transport and the Strategic Rail Authority (SRA) for the heavy rail network. The 10 Year Plan review will clearly need to consider the relationship between these agencies as well as the integration between transport delivery and the emerging regional spatial strategies that are the responsibility of the Regional Planning Bodies. It will also need to make sure that all transport services are delivered to meet the accessibility needs of existing and potential travellers (including older and disabled people) over the next 30 years.

Strategic Road Network

Improvements to the strategic road network are being addressed through the targeted programme of improvements as well as additional schemes arising from the recommendations of the various multi-modal studies. Just under half of the 10 Year Plan road widening target (by length) is already in the Highways Agency programme with 9% completed. The programme also includes 11 major junction improvement schemes from a 10 Year Plan indicative target of 80. During 2003/04 there will be eight new schemes starting and nine being completed.

However it is encouraging to note that as well as new schemes, there are innovative demand management initiatives coming on stream in the near future, notably the first phase of active traffic management trials (including ramp metering) due to begin in late 2004 on the M42. CfIT welcomes the introduction of these measures, and is keen to see them rolled out as quickly as possible to other parts of the network.

Local Government

In terms of delivery, London has been a success story, with rising bus patronage and cycle usage as well as the successful introduction of the world's largest congestion charging scheme. The success of London has been at a significant financial cost that will need to be taken into consideration, both in developing London's transport strategy further and in assessing what lessons can be applied in other urban areas more generally. In this respect, it is vital that revenue raised from local congestion charging is hypothecated.

traffic image

Both Brighton and York have also enjoyed increased bus use. The introduction of Park and Ride services in York has been particularly successful, contributing significantly to an 8% fall in inbound peak hour traffic flows. In addition, the development of a successful Quality Bus Partnership, working with the majority of bus operators in the city to create a network of 10 minute frequency services on all arterial routes, has seen a history of decline turned into 14% growth on these routes.

In Brighton, bus patronage has increased by approximately 50% over the last 10 years. Against a national background of declining bus use, this growth results from a partnership between the city council and the major bus operator.

Elsewhere, the picture is far less conclusive. Aside from some notable exceptions (such as Oxford and Cambridge), bus patronage continues to decline and in spite of substantial investment in measures for pedestrians and cyclists, local authorities have little confidence that this will lead to an increase in the use of these modes. CfIT research shows that nearly half of all local authorities are already falling behind in delivering their Local Transport Plans. Worryingly, over a third of authorities indicated that they used less than 90% of their available funds for transport for the year 2001/02.

The Commission welcomes the year-on-year increase in funding from central government to local authorities through the Local Transport Plan. Excluding London, funding has more than doubled in the last three years from £746m in 2001/01 to £1,591m in 2003/04. In most cases, this has yet to be translated into better delivery at the local level. CfIT's recent survey of local authorities found that while 78% of local authority transport heads are now happy with the level of capital funding they receive thanks to additional Government money, 62% are concerned that some of the cash is being diverted to education and social service budgets under new funding arrangements.

The appropriate balance needs to be drawn between the need for local authorities to deliver in relation to national targets and the desire to devolve responsibility for target and objective setting down to the local level.

CfIT is committed to the principle that transport funding should be tied to the delivery of successful outcomes and in this context is concerned at the recent Government's policy statement about new freedoms and flexibilities for top performing local authorities. This indicated that local authorities classified overall as "excellent" by the Audit Commission (although not necessarily excellent in transport) would no longer need to prepare service plans to meet Whitehall Department's requirements, such as a Local Transport Plan or Annual Progress Report. At the same time, CfIT is aware that current processes do not always make it easy for local authorities to implement schemes by introducing such things as mandatory appraisal criteria for the assessment of major schemes, which add to the local authority burden.

CfIT view: the review of the 10 Year Plan provides an opportunity to re-examine local transport funding mechanisms to ensure that they allow local authorities to plan and deliver sustainable programmes of work. Appropriate incentives are needed to ensure that authorities place the same importance on transport as an area of expenditure as the Government, by rewarding those that set (and meet) stretching targets.

Challenge for the 10 Year Plan review
How will the Government ensure that money provided to local authorities for transport contributes towards meeting national targets?

Rail

The 10 Year Plan forecast that rail patronage would grow, predicated partly on network upgrading and partly on improvements in service provision (journey times, punctuality, reliability etc). It has become clear since Hatfield that these improvements will take longer and be more costly to secure. Indeed, the 2003 SRA Strategic Plan recognised the difficulty facing the industry in that although the target remains 50% growth in passenger kilometres by the end of the 10 Year Plan period, the SRA's current forecast is for something between 25-35%.

Cost escalation is a major threat to continuing investment in the rail system. The industry will have to look afresh at how it operates and bring costs under control if it is to compete for public funds and to attract private investment for improvements in the future. Over the first three years of the SRA's Strategic Plan, operation, maintenance and renewals expenditure costs are expected to be £13.7bn, some £3.7bn more than forecast by the Rail Regulator at the last periodic review. The success of Network Rail will be determined by how well it gets to grips with delivering the upkeep/maintenance of the rail network while reducing costs. The Commission is still to be convinced that it can do this.

Despite the generally negative media coverage of the railways, the passenger experience is more balanced. The latest figures from the National Passenger Survey indicate that 73% of passengers are either satisfied or very satisfied with their rail service and satisfaction with punctuality and reliability of services has risen to 69% (up 5%). In terms of redevelopment, during 2002 work was completed information systems. The last year has also seen the introduction of new rolling stock on the c2c London to Southend line and on Virgin Cross Country and West Coast Main Line services. Since the introduction of the new trains, c2c passenger satisfaction rating has gone up by 50% and passenger numbers on Virgin Cross Country services have increased by 40%. While these are welcome initiatives, service quality overall in the rail industry is below the expectations of the 10 Year Plan and needs (and is getting) urgent attention from the rail industry.

Improvements such as those outlined above need to form the basis from which the industry improves service quality even further.

CfIT supports the SRA's and Government's current focus on getting the existing network and services up to scratch and in driving efficiency up and costs down. However, in the longer term the Commission believes that there are areas of the transport market where rail has the advantage over other modes and a very bright future. With this in mind it will be examining the economic, social and environmental case for purpose built high-speed rail lines in the UK connecting our main cities.

Rail is particularly good at catering for high speed inter-city travel and at delivering radial commuting in our larger cities (particularly London). It is essential that these services are enhanced and reinforced, both through investment in upgraded infrastructure and services and in their better integration into the wider transport networks. Growth in rail patronage will largely come about from investment in network capacity (coupled with investment in rolling stock and more aggressive marketing of off peak services). Money for this investment can only come from one of two sources; the public purse or the fare box. In the areas where rail has an advantage as discussed above, the rail industry will have to face the difficult issue of what to do about rail fares.

Facilitating interchange at key nodes (with cars, Light Rapid Transit (LRT) and bus services, cycling and walking) has a significant role in playing to rail's strengths and in maximising its contribution to wider transport policies. The Merseytravel initiative to take over management of the local rail franchises through a 25 year £3.6bn contract is an encouraging step in the right direction.

In other urban areas, consideration should be given (and research undertaken as necessary) to the conversion of the heavy rail corridors to either joint running with LRT or for use as dedicated links in LRT networks. The Sunderland Metro project involved the upgrade of 14km of heavy rail infrastructure for joint running of passenger, freight and light rail between Newcastle and Sunderland as well as 4km of new build light railway between Sunderland and South Hylton. In rural areas, CfIT is encouraged by the success of community rail partnerships (CRP) in developing local rail services. Such initiatives need sufficient support to assess their long-term potential in delivering improved rural access and in dealing with rural social exclusion. For example, passenger ridership on the Sudbury branch, promoted by the Essex and South Suffolk CRP, has increased by 76% since 1995/6. On Anglia's Bittern Line, passenger numbers have grown by 120% over the same period.

Rail freight enjoyed growth of approximately 50% between 1994 and 2001 and were this trend to be continued through to 2010 rail freight would achieve growth of almost 53%. However, not only is this well below target, but there are reasons to suggest this trend may not continue. Growth in recent years has been primarily in coal, with some additional growth in construction materials. These are not the sectors on which an 80% growth in rail freight can be based, nor do they necessarily meet the objective of removing freight traffic from the road system.

CfIT view: it is vital that cost escalation in the rail industry is brought under control and that the public receives good value for money on rail investment. However, there are areas of the transport market where rail has the advantage over other modes and that there is a bright future for rail. In planning for the longer term, the policy focus should be concentrated in these areas.

Challenge for the 10 Year Plan review
How do we get the best from the rail network?

Government Structures

Since the ITWP was published, the responsibilities for land use planning, transport, the environment and local government functions have been split between three Government departments - Department for Transport, Office of the Deputy Prime Minister (ODPM) and Department for the Environment Food and Rural Affairs (DEFRA). There are benefits from a department with a clear focus on transport delivery, but the much wider role for transport in delivering cross-Government objectives make it important that it avoids the narrow focus of the past, seeing itself solely as an infrastructure provider.

The introduction to the 1998 DETR Annual Report stated "In bringing together the former Department of the Environment and Department of Transport we are seeking to ensure greater coherence and a more integrated approach to policy on the environment, transport and regional affairs. I cannot stress how much importance I attach to securing integration between the policies, services and functions of the two former Departments." The ODPM Select Committee said in its 2002 Annual Report that since the separation of the former DETR in 2001/02 "there has been a loss of coherence between transport, planning, housing, regeneration and environmental policy". The Commission shares these concerns.

The relationship between implementation of land use policies (particularly the location of traffic-generating activities and services) and transport policy, needs to be symbiotic rather than service led, as it has been in the past and still is frequently. The transport consequences of land use planning decisions (and public policies) can no longer be seen as an afterthought. This is fundamental to delivering the White Paper objectives.

Diagram showing split of DETR into Defra and DTLR, and DTLR split into ODPM and DfT

The recent White Paper on Sustainable Communities is a clear example of a policy that can be achieved only with the assistance of transport infrastructure and services planned in advance (probably delivered up front, albeit as part of a wider package of measures); and through focusing resources on providing sustainable access to key services within areas of growth. This will also require assessment of transport options against wider outcomes than has happened in the past. The primary impact of transport infrastructure provision and service improvement as currently assessed is in time savings for travellers (alongside safety benefits).

What is important, given the diverse range of outcomes intended by the integrated transport policy, is how these time savings are used by travellers and what actual benefits (economic, social or environmental) flow from such behavioural changes. If, for example, time savings are used only to facilitate longer journeys to carry out the same activities, where is the added value in terms of the economy, or for social inclusion? In fact such a response (and there have been indications over the last few years that this is a significant response to some improved transport links) is likely to lead to more car dependency and higher levels of social exclusion.

In providing for sustainable communities, the role for transport is more about enhancing travel within the growth areas, than travel to and from the growth areas (although this is obviously necessary). These requirements to a large degree are over and above those set out in the 10 Year Plan. As a consequence, the Commission considers that in reviewing funding for the 10 Year Plan, the funding implications of the various policy initiatives that have emerged since the plan was published should be explicitly recognised.

Decision makers need to have to hand better information about the impact of investment options on quality of life indicators (access to essential services for the socially excluded; health; the proportion of trips that can be served effectively by public transport, cycling and walking; urban renewal and regeneration; housing densities; re-use of brownfield land etc) as well as economic indicators. It is pleasing, therefore, that the DfT is committed to reviewing its appraisal criteria to ensure that the wider outcomes of transport investment are considered.

Currently, two pieces of legislation are passing (or have passed) through Parliament, the Planning and Compulsory Purchase Bill and the Regional Assemblies (Preparations) Bill (now law). The former in particular is of direct relevance to integrated transport. It proposes a change to the current planning system by removing county structure plans, leaving the Regional Spatial Strategy (including the Regional Transport Strategy) as the only overarching statement linking land use and transport at the regional/sub-regional level. The Commission is concerned at the proposed breaking of the link between transport and land use planning, as there is a clear need for these two planning functions to be kept together at the strategic level. It is also concerned about the ability of Regional Assemblies, relating to their locus (or lack of it) as far as delivery is concerned.

The benefits of a strong role for regional transport planning, with sufficient leverage to ensure delivery, are set out within CfIT's European Best Practice Report[8]. Case studies undertaken as part of the research showed that in Germany for example, the Lander system has a strong influence on the quality and co-ordination of public transport. In addition, work undertaken for CfIT on the organisation, planning and delivery of transport at the regional level[9] showed that the greater emphasis on the regional tier of government in other European countries delivers significant benefits.

The 10 Year Plan contained a number of Public Service Agreements (PSAs) set in the context of the Government's spending review in 2000. These targets set out what people could expect public services to deliver. The current set of PSAs, revised as part of the 2002 Spending Review, relate to desired outcomes across transport encompassing the strategic road network, rail, local public transport, LUL, safety and air quality. As part of the 10 Year Plan review, an issue for Government is to what extent these have been developed to support integration as set out in the ITWP and whether they need to be more widely based to deliver integration, particularly across Departments. This will include consideration of the extent to which these incorporate the commitment that public spending on transport is conditional on access for disabled people being included.

CfIT view: the creation of DETR was positive in terms of the integration of transport, planning and land use and was integral to the development of the ITWP and delivery of its objectives. Since the break up of DETR, a key component in the ability of Government to join up its policies has been lost, and there is a danger that individual departments may become less coordinated. In order to address this, CfIT recommends a review of the current departmental PSA targets, to ensure these are sufficiently widely based to deliver cross-cutting objectives.

A strong role for regional transport planning is essential to bridge the gap between the national strategic planning and delivery at the local level.

Challenge for the 10 Year Plan review
Are the existing Departmental arrangements and PSA targets effective in ensuring that transport plays its role in delivering the Government's cross-cutting objectives? Are there lessons on regional structures and functions to be learnt from Europe in delivering integrated transport at the regional/local level?


8: European Best Practice in Delivering Integrated Transport, CfIT Nov 2001.
9: Organisation, Planning and Delivery of Transport at the Regional Level, CfIT Aug 2002.

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