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Roy Newton

TAG TRANSPORTATION COMMITTEE 18 September 2009. DELIVERING A WORKABLE STRATEGY AFTER THE CONGESTION CHARGE. Roy Newton. Contents. The Scale of the Challenge Funding Sources Lessons Learned from TIF The New Funding Approach Prioritising Schemes for Delivery Next Steps.

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Roy Newton

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

  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. The Scale of the Challenge • 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 NUMBERS • SLOWING SPEEDS

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

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

  8. Funding Sources

  9. Funding Sources • 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

  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 • 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 = Labour Productivity X Jobs 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. Next Steps • 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

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