1. Roy Newton TAG TRANSPORTATION COMMITTEE 18 September 2009 DELIVERING A WORKABLE STRATEGY AFTER THE CONGESTION CHARGE

2. Contents The Scale of the Challenge Funding Sources Lessons Learned from TIF The New Funding Approach Prioritising Schemes for Delivery Next Steps

3. The Scale of the Challenge

4. City Regions identified as key areas for economic growth Northern Way Growth Strategy and NW RES identify GM as key contributor to economic growth in the North of England Manchester City Region Development Plan seeks to create 210,000 new jobs over next 10-15 years Housing Green Paper requires 20% more housing than currently proposed in draft RSS (which already contains challenging housing growth targets) All the above whilst: –Tackling Climate Change –Improving Health –Improving Social Inclusion

5. The Scale of the Challenge RISE IN CAR NUMBERSSLOWING SPEEDS

6. The Scale of the Challenge CONGESTION ON TRAINS BUS RELIABILITY RISE IN METROLINK USAGE

7. -60% -50% -40% -30% -20% -10% 0% 10% 20% within 30 minuteswithin 45 minuteswithin 60 minutes % change on 2001 2021 Regional Centre Labour market Metrolink Phase 3(a) and LTP ITB only The Scale of the Challenge Manchester City’s effective labour market

8. Funding Sources

9. Local Transport Plan – Minor Works (<£5 million) – around £45 million pa in GM – Major Schemes (>£5 million) – around £115 m pa in NW Rail – around £3 billion pa nationally Transport Innovation Fund – – Congestion TIF - Around £200 million pa for 10 years – Productivity TIF - Around £8 billion over 7 Years Community Infrastructure Levy? Supplementary Business Rates? Prudential borrowing 08/0909/1010/1111/1212/1313/1414/15 £290m£600m£930m£1300m£1680m£2100m£2550m

10. Lessons Learned from TIF

11. TIF Package £2.8 billion investment proposed: –Metrolink (tram) extensions –Bus Rapid Transit –Improvements to rail capacity (in particular longer trains) –Bus priority measures and more buses –Park and Ride –Transport integration measures (including interchanges, ticketing, intelligent transport systems, better information) –Traffic management improvements –Behavioural change measures £1.5 billion funded from TIF £1.2 billion funded from prudential borrowing on charging revenues £0.1 billion third party contributions

12. Lessons Learned Tensions between technical requirements, political requirements and public understanding of a complex scheme GM comprises 10 Highway Authorities and an ITA –different political control across authorities –different degrees of support/opposition Only way forward was via referendum: –52% response of which 80% against, 20% for Timing of referendum as UK headed into recession did not help, however 2 main messages: –Distrust that charge would not increase significantly in the future or extend to cover other geographic areas –Distrust of ability of public sector to deliver public transport improvements

13. The New Funding Approach

14. The Transport Fund Concept The fund: A new approach – potential to act as multiplier on DfT funding Could start to deliver relatively quickly Economically driven – contribution to GVA subject to net positive environmental and social impacts Transformational – potential to assist GM’s growth rate by 20% Innovative – brings together national, regional and local funding to deliver an integrated programme that maximises economic returns per £

15. The Transport Fund Concept The fund comprises: Regional Funding Allocation contribution (total around £448 million to 2018/19) Top-slicing LTP Integrated Transport Block by 40% (total around £147 million to 2018/19) Increasing the Integrated Transport Authority levy by 3% per year for 6 years (to fund prudential borrowing total of £649 million paid back over 30 years) Other contributions (£291 million) Total fund size £1.535 billion

16. Prioritising Schemes for Delivery

17. Scope of Work Independent assessment of major schemes as part of an Investment and Funding Strategy Limited to schemes part of RFA and Post TIF Legacy list To assess contribution to key economic outcomes, in addition to environmental and social objectives To inform decision making

18. Prioritisation Metric Greater Manchester GVA per £ of ‘local buying power’ Subject to: –Positive impact on C02 emissions –Increase in the number of jobs accessible to: The average resident of GM The average resident in areas within the bottom quartile of the index of multiple deprivation

19. Economic Methodology GVA = Labour Productivity X Jobs Labour Productivity Productivity analysis based on: DfT guidance Outputs from consistent transport models Jobs Employment analysis based on: Changes in connectivity to labour, other businesses, retail markets Consistent with TIF economic analysis Cost = Impact on buying power of GM transport fund GVA per £

20. Agreed Programme Accelerated DfT Package –Metrolink: Chorlton to East Didsbury –Metrolink: Droylsden – Ashton –Elements of Cross City Bus Package –Park and Ride in Greater Manchester South East Manchester Multi Modal Strategy (SEMMMS) Relief Road Mottram Bypass and Glossop Spur Bypasses Leigh-Salford-Manchester Busway Metrolink: Rochdale Town Centre Ashton Northern Bypass Stage 2 Wigan IRR Metrolink : Airport and Second City crossing Fund contributions to stations Altrincham Interchange Bolton interchange Metrolink: Oldham Town Centre Additional priorities awaiting further funding: Metrolink – Trafford Park Stockport Interchange Stockport Town Centre Access Scheme East Lancashire Railway

21. Next Steps

22. Charging is off the agenda in GM for the foreseeable future Considering other funding streams eg: –Further ring fenced contributions to schemes. –Tax Increment Finance pilot project –Further increases for the ITA levy Assessing implications for LDF core strategies and GM economic strategy Assessing implications of single regional strategy and DASTS processes Developing LTP3 –Strategy to 2020 –10 implementation plans –Review of funding distribution Statutory City Region negotiations

23. Next Steps Reviewing transport governance –Constitutional arrangements - membership, decision- making, executive arrangements, accountability and institutional structure –Functional changes - powers of direction or statutory delegation of transport functions from the Secretary of State or a district authority –Geographic scope - determining the relevant boundaries in transport terms, which may include formalising the relationship with authorities within the travel-to-work area of the conurbation. Implications of local and national elections Considering future funding scenarios

24. Contact Details Roy Newton Head of Greater Manchester Joint Transportation Policy Team Email: roy.newton@gmltp.co.uk Tel: 0161 244 1164 Fax: 0161 244 1179 Website: www.gmltp.co.uk