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ROAD 2010 LoTAG 16 November 2010

Explore the implications of recent spending cuts on highway services, opportunities and threats, and strategies for smarter service delivery. Discover key statistics and strategies to adapt to the changing financial landscape in the transportation sector.

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ROAD 2010 LoTAG 16 November 2010

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  1. ROAD 2010LoTAG 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 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operated for the benefit of its customers rather than for internal convenience, audit requirement or an out-moded and outdated 60’s/70’s command and control ethos”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 THANK YOU FOR LISTENING

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