DISTILLATE Appraisal Workshop 21 May 07

1. DISTILLATE Appraisal Workshop 21 May 07 Michael Padgett, Regional Transport Advisor, Yorkshire & Humber Assembly

2. Experimental Transport Board – Summer 2004 • 2 pilot Boards – Y&H and S E Assembly • Reported to DfT in October 2004 • Valuable experience • Proved value of collaborative working YHA/YF/GOYH • Demonstrated good strategy alignment in Y&H • A “real” RTB would need more emphasis • on ranking proposals in priority order

3. “Interim”Regional Transport Board – Autumn 2005 • Dec 2004 – consultation on Regional Funding Allocations • June 2004 – GOYH invited tenders for prioritisation work • Jan 2006 – forwarded advice to Government • Comments • Need to base advice on clear, consistent principles • Need a transparent methodology • Not a “fair shares for all” approach • Need to accept collective responsibility

4. Methodology used by the Interim Transport Board - Approach • Aim to inform decision-making - not provide absolute ranking • Individual proposals assessed on two key factors: • Policy/objectives • Value for money • But assessment scores are not combined • Then provide comments on • Deliverability/affordability/risk

5. Methodology used by the Interim Transport Board - Principles • Priorities based on a restricted number of policy criteria; • No weighting of principal criteria (economic/environmental/social policies) • Value for money based only on Benefit/Cost Ratio; • Deliverability used only as a narrative to inform decisions; • Scheme evidence provided by scheme sponsors

6. What is the Regional Spatial Strategy? • A spatial framework for the Region over 15 to 20 years - both land use and transport • Priorities: ‘where things go’, ‘how much’ and ‘how big’ (for housing, businesses, etc.) • A framework for Local Development Documents and Local Transport Plans • Informs and supports other strategies and programmes that have a bearing on land use activities • Regional Transport Strategy an integral and clearly identifiable part of a RSS

7. Methodology used by the Interim Transport Board – Policy Objectives • Wide range of policy documents reviewed in developing criteria, but focus is on how well proposals will deliver the RSS • 15 policy criteria, divided into 3 groups: • Economic • Environmental • Social • Use a 7-point scoring system for each criterion, assisted by GIS maps of spatial policies

8. Methodology used by the Interim Transport Board – Value for Money • Based on DfT guidance: • BCR less than 1: poor VfM • BCR between 1 and 1.5: low VfM • BCR between 1.5 and 2: medium VfM • BCR over 2: high VfM • Problems with: • Cost bases – should all be outturn • Major Scheme Bids in 2005 also included environmental elements • Optimism Bias

9. Methodology used by the Interim Transport Board – Deliverability • Scheme status – range from “committed” to “proposed for investigation” • Comments on any bids already made to DfT • State of readiness - details of 3 areas of risk: • Risk to programme – eg public inquiries • Risk to cost • Risk to public/ stakeholder acceptance

10. Methodology used by the Interim Transport Board – Affordability • Affordability measure – 3 elements: • Total cost of scheme • Total cost to Government (or indicator of potential for 3rd party funding) • Will scheme be financially sustainable – eg operating costs?

11. Methodology used by the Interim Transport Board – Presentation

12. Government response on RFAs - July 2006 • Generally accepted the recommendations • List schemes for funding in next 3 years • Expect to fund 11 schemes under development • But DfT to retain control of the budgets • Very impressed by the effort in the Region • - and progress developing consensus • In future – build on this success • Expect to seek formal advice within • next 2 years

13. Regional Transport Board – key tasks • Review Regional Funding Allocation schemes where cost increases> 10% • Advise Government on “new” schemes – both policy fit and funding availability • Carry out full review of RFA schemes – to send advice to Government July 2008