1. IMPACT OF THE SPENDING REVIEW ON HIGHWAY SERVICES
ROAD 2010 LoTAG 16 November 2010
IMPACT OF THE SPENDING REVIEW ON HIGHWAY SERVICES
Stephen Child
Stephen Child Consultancy

2. Impact of the spending review
A = Awful B = Bad C = Challenge

3. Impact of the spending review

4. Impact of the spending review
Could have been worse
Some not so bad news
We are all going to suffer
We will have to do less
Staff cuts

5. Impact of the spending review

6. Impact of the spending review
So is this opportunity or threat?

7. Impact of the spending review
EFFICIENCY
EFFECTIVENESS
ECONOMY
CSR

8. Impact of the spending review
Survey by Local Government directory The Municipal Year Book
90% said services would suffer following a tough CSR
Over 67% feared for their jobs
Many respondents acknowledged that further efficiencies could be made
Almost 95% felt that the private sector would not fill jobs gap
Appetite for innovation is strong

9. Impact of the spending review
“CSR presents an opportunity for Local Government to make a step change for the better in service delivery. Not through economies of scale, centralising and sharing services where possible, but through economies of flow. Services should be set up and operated for the benefit of its customers rather than for internal convenience, audit requirement or an out- moded and outdated 60’s/70’s command and control ethos”

10. Impact of the spending review

11. Impact of the spending review

12. Impact of the spending review

13. Impact of the spending review
Department for Transport
Resource spending reduced by 21%
Capital spending 11% reduction
33% reduction in Administration

14. Impact of the spending review
So what does this mean?
Reducing bus subsidies
Strengthened scrutiny and transparency for TfL’s investment programme
Over £10b for national and local roads however significant cost reductions across the programme

15. Impact of the spending review
Spending on LU network is protected
PFI projects will continue but will discuss how projects can be delivered more affordably
Simplify Local Authority Grants from just under 30 to 4
25% reduction in capital to LA’s

16. Impact of the spending review
In London benefits will include:
UK-wide Green Investment Bank
£1.4b Regional Growth Fund
Tax increment financing
Capital investment – Crossrail; UK Centre for MRI; Tube upgrade; Olympic infrastructure

17. Impact of the spending review
Future publication of a White Paper on local growth setting out the Government’s strategy for ensuring that all places benefit from sustainable economic growth.
Focusing capital on projects that will deliver the highest economic returns.

18. Impact of the spending review

19. Impact of the spending review
The emphasis is on the public sector to make smarter procurement decisions in order to maximise value from the £200 billion spent with private and voluntary sector providers. They will need to improve their ability to control their finances and manage complex commercial relationships in order to minimise redundancies and reduce the impact on frontline services.

20. Impact of the spending review
Risk taking
Standardise
Understand condition and lifespan
Lifecycle planning
Customer expectation

21. Impact of the spending review
We must become smarter at identifying new innovative ways to deliver an improved service at less cost.

22. Impact of the spending review
Final thoughts – C = Challenge O = Opportunity R = Realistic E = Expectations

23. Impact of the spending review

24. Impact of the spending review
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