Highways Maintenance Funding for Local Roads Parvis Khansari - ADEPT Chair of Engineering Board Graham Pendlebury - Director of Local Transport, DfT Geoff Allister - Executive Director, Highways Term Maintenance Association Lila Tachtsi - Director, Transport Asset Management, Atkins

Challenges and Risks Disconnect between funding Strategy and Asset Management Strategy Constraining growth Historic backlog Governance

Opportunities Public support Innovation, efficiencies and HMEP Transport Investment Strategy National Roads Fund Major Roads Network More efficient allocation of funding Collaboration and alliances

Graham Pendlebury Director of Local Transport, DfT

HIGHWAYS UK – Local Maintenance Funding Graham Pendlebury – Department for Transport November 2017 OFFICIAL Local Roads Maintenance

Funding Local Highway Maintenance Between 2016 – 2021, UK Government is making over £7 billion of capital funding available for local highways maintenance and improving local networks. This includes £578 million of this amount has been set aside to incentivise local authorities to carry out cost effective improvements and have an up to date asset management strategy. And £250 million through the Pothole Action Fund between 2016 and 2021. Additional £1.1 billion National Investment Productivity Fund (NPIF) announced Autumn Statement November 2016 to tackle congestion hotspots on local road network. November 24, 2018

Funding Incentive Fund Year Incentive Fund 2016/17 £50 million 2017/18 £75 million 2018/19 £151 million 2019/20 2020/21 To be shared between 115 local highway authorities Amount each authority is eligible for based on usual needs formula

Funding Competitive Funding Streams NATIONAL PRODUCTIVITY INVESTMENT FUND (NPIF) Spring Budget 2017 announced a £690 million Fund to local highway authorities in England outside London through a competition. Bids were received for the first tranche of funding in June 2017. 76 projects were awarded £244m in October 2017. NPIF has three key objectives – To Ease traffic congestion To unlock economic growth and enable job creation To enable the delivery of vital new housing developments Bids sought for two categories – up to £5m of DfT funding for small road improvement schemes up to £10m of DfT funding for larger schemes subject to a strong economic case being made by the bidder. Although no minimum local contribution was specified all bidders offered to make a local contribution of their own or seek additional funding from a developer or housebuilder, as key element of the Fund is to improve access to sites which stimulate development for new homes and also benefit local businesses.

Funding Transport Investment Strategy Transport Investment Strategy published in July 2017. Unveiling the strategy in July 2017, Transport Secretary the Rt Hon Chris Grayling MP described it as “a blueprint for how we can harness the power of transport investment to drive balanced economic growth.” Key part of the proposals are the Government’s announcement that it will be consulting on plans for a ‘Major Road Network’, which would see a share of the annual National Roads Fund, funded by Vehicle Excise Duty (VED), given to local authorities to invest in local roads. Strategy highlights Government’s commitment to prioritising predictable funding and a stable long-term pipeline of projects November 18

Improving Efficiencies Revised Code of Practice November 24, 2018

Future Funding Streams 24 November 2018

Embracing Technology to Help Maintain Roads and Resilience November 18 Version 1-2, 2nd February 2012

Local Highways Innovation Pothole Spotter Trial “Pothole-Spotter is a combination of advanced and well tested technologies as well as advanced data analytics techniques that will help to identify existing potholes and developing problems. Over time this will enable councils to better predict how and when potholes are created. Creating a proactive service delivery environment. Local Highways Innovation November 18 Version 1-2, 2nd February 2012

November 18

Local Resilience The winter of 2015/16 saw a number of storms which led to severe damage to local roads, bridges and other highway assets. The Department provided over £180 million in March 2016 in emergency flood recovery funding to help rebuild local highway assets. The Department is currently undertaking work for Cabinet Office, as part of longer term work on National Flood Resilience Review, to help understand local critical infrastructure and its condition, including understanding those communities that could be vulnerable to isolation due to local road flooding, and identifying vulnerable local bridges and utilities to help prevent single point of failure. This work is ongoing. November 24, 2018November 24, 2018November 24, 2018November 24, 2018November 24, 2018November 24, 2018

Thank you for listening Graham Pendlebury Director of Local Transport Graham.Pendlebury@dft.gsi.gov.uk Cities Policy and Delivery November 24, 2018

Geoff Allister Executive Director Highways Term Maintenance Association

Lila Tachtsi Director Transport Asset Management Atkins

Parvis Khansari ADEPT Chair of Engineering Board

Comparison of Forecast Spend in 2019/20 on the SRN with that on Local ‘A’ Roads 8.4 times higher, per route mile; 4.4 times higher, per lane mile; and 2.1 times higher, per vehicle mile (or 1.5 times higher, based on maintenance spend only).

Other Challenges in Funding Local Roads Capital/revenue dilemma Local roads funding in contention with social care funding Inadequate budgets lead to more reactive maintenance Skills and expertise Is an alternative funding mechanism required?

Opportunities Public support Innovation, efficiencies and HMEP Transport Investment Strategy National Roads Fund Major Roads Network More efficient allocation of funding Collaboration and alliances

Questions?