Transport for Lancashire Committee

2nd December 2013

Report Author: Dave Colbert,Specialist Advisor Transport Planning, Lancashire County Council

Executive Summary

The purpose of this report is to update the Committee on progress to date with the approved local major transport scheme investment programme, and to advise on the scope of work commissioned from consultants Jacobs to develop the processes necessary to support its successful delivery.

Recommendations

The Committee is asked to:

1)Note the contents of this report; and

2)Request an update report for consideration once the Jacobs commission has concluded.

  1. Background

1.1At its previous meeting held on 1st July 2013, Transport for Lancashire approved and adopted a local major transport scheme investment programme subject to full major scheme appraisal and individual schemes demonstrating high value for money. Transport for Lancashire also agreed to the establishment of a development pool of schemes for inclusion in the investment programme as and when resources permit.

1.2As part of the City Deal negotiations with the Government, in order to secure greater certainty with regard to future funding levels for local major transport schemes and to reflect the need to set City Deal schemes within the context of TfL's broader priorities, the City Deal partners requested a ten year funding allocation. The City Deal for Preston, South Ribble and Lancashire was secured in September 2013 and the Department for Transport has now confirmed a ten year funding allocation of £106.9m to 2024/25, with £59m committed for the six years from 2015/16 to 2020/21, together with an indicative allocation of £47.9m for the subsequent period to 2024/25.

1.3In line with Department for Transport requirements, the agreed prioritised scheme list was submitted in mid July. Given the spend profiles provided by scheme promoters for the prioritisation process, spending is front-loaded to the six year period 2015/16 to 2020/21, and assumed an indicative ten year allocation although at the time that had yet to be confirmed. Blackburn with Darwen Council has subsequently secured Local Pinch Point funding to deliver the Haslingden Road Corridor Improvements. This scheme will therefore drop out of the investment programme, releasing £1.8m for spending elsewhere.

1.4Of the six schemes in the development pool, the Highways Agency is investigating funding the M65 Junction 4 Improvements through its own Pinch Point programme. Blackpool Council has submitted the Yeadon Way major maintenance scheme as a candidate bid for Tranche 4 Local Pinch Point funding.

1.5From 2015/16, Department for Transport contributions to schemes approved prior to the establishment of the devolution arrangements will be included in the Single Local Growth Fund (SLGF). This includes both schemes approved by the Coalition Government since 2010 and schemes that were under construction at the time of the 2010 General Election and have an expenditure profile that extends into 2015/16 and beyond. Local Enterprise Partnerships will be granted funding for such schemes in addition to confirmed allocations to local transport bodies and any competitive allocations agreed through Growth Deals. In Lancashire, this applies to the Heysham to M6 Link Road and Pennine Reach schemes. The table attached as Appendix A summarises the known funding profiles for all schemes in Lancashire.

1.6There is now a need for Transport for Lancashire to develop the processes that will support successful delivery of its investment programme, including the scale of work and resources required to deliver each scheme. Work with an estimated cost of up to £100,000 has been identified, to include the development of consistent business case templates and proportionate approach to scheme appraisal based on the scale and complexity of each scheme, and an appraisal process to support the identification of wider economic benefits / GVA for schemes within both the investment programme and development pool. This will assist scheme promoters in understanding the scale of work and resources required to deliver their respective schemes and provide a more comprehensive framework for future investment.

1.7At its meeting on 24th September 2013, the LEP Board approved a maximum of £100,000 from its Core Funding budget to develop robust business case and appraisal processes to support the delivery of Transport for Lancashire's agreed investment programme and development pool. Lancashire County Council has commissioned this work from its framework consultants Jacobs, with the work scheduled for completion by the end of February 2014.

1.8As part of the commission, Jacobs will undertake a peer review of the current status of all schemes in both the investment programme and development pool. This will:

  • Advise scheme promoters of any gaps and identify a forward plan of resource requirements;
  • Reaffirm the value for money and deliverability of each scheme, including the programme to construction and key project risks;
  • Provide Transport for Lancashirewith confidence that the overall programme is deliverable with the constraints of available funding; and
  • Assist scheme promoters in engaging with Local Plan processes and securing any S106 / CIL contributions required to maximise third party investment.

1.9Jacobs will set out a proportionate approach to assessment and appraisal linked to the scale and complexity of each scheme. The output will be a process chart that Transport for Lancashire can share with scheme promoters and the Department for Transport. It will include the development of consistent business case templates in line with Department for Transport guidance on the two-tiered approach to business case development and take account of the inclusion of a number of major structural maintenance schemes in the investment programme / development pool. Jacobs will liaise closely with officers from the promoting authorities as part of this work.

1.10A key objective will be to develop a process that at key project milestones provides an appropriate level of quantified evidence to enable Transport for Lancashire to make transparent decisions that will stand up to independent challenge and scrutiny either centrally by the Department for Transport / HM Treasury or through Part 3 of Transport for Lancashire's agreed Assurance Framework. The work will also put in place the initial stages of a robust mechanism for scheme delivery and risk management, essential if the LEP is to secure additional funding for transport through a Growth Deal given that future allocations will be competitive and linked directly to performance.

1.11Jacobs will develop a consistent appraisal process to determine the wider economic benefits / GVA for all schemes within the investment programme and development pool. This will support conformation of the wider benefits of each scheme and the overall programme against the Governments growth agenda, for example, job creation and GVA growth, and development of the LEP's Strategic Economic Plan. It will also be key to ensuring that future transport priorities align closely with economic growth objectives.