Public Transport Organisation and financing in the practise - United Kingdom -

1. Public TransportOrganisation and financing in the practise- United Kingdom - Vince Christie Local Government Association Transport Policy Officer November 2005

2. Introductions • Mainly concentrating here on bus funding issues rather than rail, although some mention of rail. • Apologies for technical acronyms! There are: • Issues of how public transport is funded • Issues of how local government is funded in order to itself fund public transport

3. Local Government I. • Local Government Association formed April1997 –formerly AMA/ADC/ACC. Also WLGA/ALG and COSLA/ALANI for Wales/London and Scotland/N Ireland. GLA for London-wide government outside these. • London legislation – different from everywhere else in a number of respects • Metropolitan authorities and PTAs/PTEs – Transport Acts 1968 and 1974

4. Local Government II. • Counties and districts in some areas - from even more variations before 1974 •  More unitary authorities in the 1990s – Scotland/Wales and parts of England • But boundaries now perhaps less convenient for public transport strategies •  Wales and Scotland spiralling off from England now in transport and local government legislation after devolution

5. Transport legislation I. Transport Act 1985 privatisation of former NBC and STG (Scotland)/public sector companies set up – led to selling of PTE bus companies but 17 municipal companies left/commercial operations of 70 to 80% of network/service reductions evenings and Sundays and an ‘unmet need’ provision which is funded by local authorities

6. Transport legislation II. • London legislation – public control of network but private operation via route tendering •  Northern Ireland – still public control. •  Transport Act 2000 – some changes but not what local government wants •  Railways Acts – various – privatisation and all the troubles since/diminution of the PTE role this year except for Merseytravel

7. Local Government finance I. • Complicated! • Three year spending settlements – annual updates for new burdens – this year LGA announces a ‘black hole’ of which £300 million revenue resources shortfall • Capital and revenue issues – Transport Capital via 5 year Local Transport Plans (LTPs) published on www.ltpnetwork.gov.uk •  No ring fencing is LGA principle!

8. Local Government finance II. • Concessionary fares via districts (EPCS) – is it a subsidy to public transport or the user? • Fuel Duty Rebate/Bus Service Operator Grant – similarly is this a real subsidy? • No VAT (sales tax) on public transport fares – same point • Bus revenue support via counties and unitaries (in EPCS block of RSG)

9. Local Government finance III. • Government trying to get more of a regional dimension led by Scotland and Wales, but upset by vote against in NE England – some issues such as bus route funding must be more local. However some regional transport funding allocations are to be made. • Transport Innovation Fund (TIF) is the latest Government initiative – July 2005 – linked to road pricing experiments and public transport improvements as part of a package

10. Local Government finance IV. • Ten Year Transport Plan (10YP) – with targets and private investment assumptions - first published 2000 – seems it is being quietly forgotten. • Ambitions in 10YP for light rail – but arguments since on funding – who to blame • Light rail and utility diversions • Politics of light/heavy rail versus guided bus option

11. Local Government finance V. • Targets for bus patronage – but we say deregulation needs to have tools in the toolbox see www.lga.gov.uk and www.pteg.net • Community railways is latest local rail idea this year, which could involve more local government funding and local responsibility in the end – but where is the money to come from – longer term closure worries?

12. Arising from how distribution of local government spending is decided nationally (in England) • Rural and urban issues - current circumstances very different esp regarding accessibility and congestion policies • North and south balance in spending; eg priority for Crossrail/Olympics around London

13. Formula funding issues – how to make them fair – not just an issue for transport of course • Local funding - S106 planning agreements limited, some parking/road pricing income esp London, no property taxes etc at present for infrastructure although some would like them

14. Bus operators’ appear to have opposing views to local government about UK legislation on bus regulation – many of them operate in both London and on the continent and operate franchised trains in the UK • London – the Mayor and TfL – usage up but costs high and some bold Mayoral decisions eg up to 150% fares increase on single fares on underground from Jan 2006 to encourage electronic ticket use – will disadvantage tourists

15. Government and/versus local government – always a tension over funding split via DfT, including extent of private investment, and via ODPM which gives overall local government settlement – • Ministries often thinking of local authorities as ‘delivery agents’ and wanting performance statistics at the same time as not giving the legislation necessary to allow delivery everywhere.

16. The future • We want better bus legislation to make all tools available as needed for all areas – no common template • We want to preserve and develop local rail networks and maintain network benefits such as through ticketing, there is a need for capital investment on rail bottlenecks • We want good accessibility to essential services in both rural and urban areas

17. We want funding mechanisms which allow authorities to deliver what is necessary locally, in the light of local economic, social and environmental objectives • We want a modern and efficient local government trusted by central government and not subject to invasive performance monitoring at every stage

18. Main Acronyms • DfT – Department for Transport • EPCS – Environment Planning and Cultural Services (I think) • ODPM - Office of the Deputy Prime Minister • PTA/E – Passenger Transport Authority/Executive • PTEG – Passenger Transport Executive Group (public transport managers in PTEs) • RSG – Rate Support Grant • TfL – Transport for London

19. Thank you for your attention! Contact: Vince Christie Local Government Association UK E-mail: Vince.Christie@lga.gov.uk