E-MAIL FROM MANCHESTER CITY COUNCIL TO DFT – 18 MAY 2011

From: Name redacted DfT

To: Sir Howard Bernstein MCC

Cc: Name redacted TfGM, David Leather TfGM

Sent: Wed May 18 13:18:17 2011

Subject: Re: SEMMS Letter from Chancellor

Sir Howard, thank you very much for providing this to me so promptly. I have used this to draft a reponse for the Secretary of State to send to the Chancellor and I will also share with senior official so that they are aware of the latest position.

I am the new NW lead within DfT's Northern Engagement Team and have established good working relationships with colleagues in TfGM. If I can provide any assistance to you then please do not hesitate to contact me.

Many thanks again for your assistance

Name redacted

----- Original Message -----

From: Name redacted MCC

To: Name redacted DfT

Cc: Names redacted TfGM, David Leather TfGM

Sent: Wed May 18 12:23:44 2011

Subject: SEMMS Letter from Chancellor

Hi Name redacted,

You wanted information to pass back to the Secretary of State's private office on the current position in relation to this important scheme.

The scheme is very important; not only will it deliver significant economic outcomes, with at least 2,098 new jobs stemming from improved connectivity between labour and business markets- and up to 11,000 new jobs if the full potential of the South Manchester Corridor is realised- but significant benefits to transport users through travel time and vehicle operational costs savings amounting to £774m and a cost benefit ratio of 5.2.

Out-turn costs are estimated at up to £284.3m assuming 44% Optimum Bias which is suggested by Dft as being appropriate for schemes at programme entry level.

The scheme was included in the Dft's priority programme but for a variety of reasons was not identified in the latest list which has resulted in a number of discussions with Ministers. As a result Officers have been asked to address a range of funding options including the desirability of reducing the level of the Dft contribution.

This work is in hand. We are also considering phasing options which enable early progress to be made on Phase 1 as a fundamental part of the Airport City Enterprise Zone proposals which the Chancellor and other Ministers announced as part of the last Budget.

We are also examining Tax Increment Financing options and subject to other third party contributions, including RGF, we believe it will be possible to significantly reduce the Dft's contribution- perhaps to a level of circa £165m. We would expect this funding in the main to be made post-2015.

We are working up detailed proposals in close consultation with stakeholders including Stockport Council which attaches the highest priority to the implementation of the scheme. The Scheme is also a high priority for AGMA.

We will be producing proposals for discussion with Dft and Treasury as we have been asked to over the coming weeks.

I hope this is helpful.

Sir Howard Bernstein

Chief Executive

Manchester City Council