Comprehensive Spending Review 2002 Submission

Executive Summary

The Government identified transport as a key priority upon re-election in 2001. The transport network has become less and less reliable. Delays are affecting everyone. However, the effects of congestion and lack of reliability are greatest on UK industry, which as a result faces enormous extra costs and deteriorating supply chain efficiency.

The July 2002 Comprehensive Spending Review provides the single most important milestone in delivery of the Government's 10-year plan. The funding committed to transport improvements over the period covered by the review will heavily influence the quality of the network we have in 2010 and the traffic demand that will be placed on that network.

In this submission the Freight Transport Association (FTA) urges the Government to:

• Make transport spending a top priority for the 2002 Comprehensive Spending Review
• Identify a five year spending timeframe so that businesses can plan for the delivery of the 10-year plan in a more confident funding environment
• Bring forward the enhancement of key rail arteries and motorway schemes where road capacity improvements are urgently needed
• Ensure that ports and airports are able to effectively service their hinterlands
• Commit sufficient funds to allow schemes detailed in Multimodal Studies and route management strategies to be delivered in full.
• Ensure rapid delivery of small scale network enhancements at congestion hotspots
• Enable existing road-side telematics technology to be integrated into operators transport management and planning systems.
• Provide additional new money to bring the road maintenance programme back on course

1. Introduction

The Government's Ten Year Plan for transport was welcomed by industry as the first coherent plan in over 30 years. It set a vision for 2010 which included:

• a reduction in road congestion of 5 per cent
• an increase in rail passenger patronage of 50 per cent
• an increase in rail freight traffic of 80 per cent
• a strategic road network maintained in optimum condition
• an elimination of the backlog of local road maintenance by 2010

Upon re-election in 2001 the Prime Minister identified transport as one area where the Government must deliver its promises. This recognised the slow start and the need for accelerated delivery of proposed new schemes. There is, however, widespread doubt that the Ten Year Plan will deliver tangible differences by 2010. The House of Commons select committee on transport providing the most recent evidence to support this view.

The 2002 Comprehensive Spending Review must allocate the funds necessary to deliver the promised improvements in the transport infrastructure. FTA identifies the following priorities in future transport spending:

1. Funding to complete the current and planned Targeted Programme of Improvements
2. Funding to deliver the infrastructure priority list in the SRA's strategic plan
3. Funding to deliver the agreed Local Transport Plans

FTA calls on the Treasury to commit funds for each of the years 2003-2004 to 2008-2009 so that the investment necessary to deliver the Ten Year Transport plan can be planned in a more confident funding environment.

2. Recent Spending Performance on Transport

Throughout the 1990's, the level growth in overall transport spending has been wholly inadequate to deliver the network improvements that industry desperately needs. Yet tax revenue from road users has grown steeply. In 1990 the equivalent of 55 pence of every £1.00 raised through road user taxation was spent on the transport. By 2000 this had fallen to 40 pence in every £1.00.

The 10-year plan sets out a gradual increase in public and private transport spending to 2010 perpetuating the level of growth seen in the 1990's. The deficit of spend compared to taxation will be at an all-time record of £16.3 billion, compared to a current deficit of £ 15.6 billion.

Even with the Ten Year Plan in place traffic levels are set to grow and vehicle numbers will increase, guaranteeing Government an ever greater source of road taxation revenue. The Government must recognise the certainty of this extra revenue by bringing forward investment planned for later in the Ten Year Plan.

The Government's Ten Year Plans shows transport infrastructure spending continuing to rely heavily on private finance. One third of all spending identified in the Ten Year Plan is private sector money. The placing of Railtrack into Railway Administration has placed uncertainty over private sector funding of some large-scale infrastructure projects in the future.

Any shortfall in private sector funding must not be used as an excuse for an undershoot in the overall level of transport spending set out in the 10-year plan or the failure of large-scale projects to be delivered.

3. Priorities for the 2002 Comprehensive Spending Review

3.1 Bringing Forward delivery of key large scale schemes

Investment must be targeted at improvements which will yield the greatest transport gains. FTA is concerned that only 14 per cent of investment in the Ten Year-Plan is planned for trunk and strategic roads which carries 50% of all passenger and freight kilometres.

Motorways are key trade routes on which industry relies. Yet they are subject of extensive congestion, lack of reliability, delays and enormous extra costs. Improvements to key sections of the motorway network capacity are in the pipeline, but are scheduled late in the Governments Targeted Programme of Improvement or are being held up by multi-modal studies.

The Government should bring forward key road schemes on motorways where road capacity improvements are urgently needed. The priorities for early improvement are:

• M1 particularly:
  • London to South Midlands Section
  • Junctions 23a to 29
  • Sheffield to Leeds
• M4 London to Reading
• M6 Midlands to Manchester
• M25
• M62 Transpennine particularly sections:
• M60 North of Manchester
• M62 Bradford to Leeds (A1) Junction

FTA also believes that every effort must be made to ensure that rail plays a full role in getting Britain moving. Significant increase in capacity and network quality on key arteries are essential if rail is to deliver consistent journey times for trunk flows of freight, for which rail is best suited.

The planned improvements to the West Coast Mainline and East Coast Mainline must be delivered as a matter of priority, if rail is to make significant inroads into accommodating forecast growth in overall freight traffic demand.

3.2 Servicing Airports and Sea Ports

Many ports and airports are privately owned. FTA recognises that where facilities are in the private sector, the investment case for new or enhanced facilities is for private companies to make to city institutions and shareholders. However, the Government does have a important role however in ensuring that new development, which is agreed on a local planning basis, is integrated in a systematic way to meet the future requirements of UK trade.

Government must also ensure that port and airport facilities can be easily accessed through the transport network. The requirement for appropriate links goes beyond the immediate area. Ports and airports have a national or even international hinterland and their role as successful hubs is dependant on efficient transport links to and from the areas they serve.

3.3 Multimodal Studies

The Multi Modal Studies are putting forward a series of balanced recommendations most of which include road, rail and public transport infrastructure in addition to improving the management and maximising capacity of the current infrastructure. The delivery timescale for these schemes is phased across a 20 to 30 year window dependent on the study. In the main the road schemes can be achieved in the short term whilst most rail and large public transport schemes would be delivered in the medium to long term.

Government must promote delivery of the road schemes at the earliest possible opportunity if gridlock is to be avoided.

The likely cost of the road schemes detailed in the studies far exceed the £21B set aside by government in the Ten Year Transport Plan. The government needs to identify detailed cost implications from the Highways Agency to ensure sufficient funds are available.

3.4 Route Management Strategies

FTA supports the work the Highways Agency is doing through the Route Management Strategies to maximise the capacity and efficiency of the existing trunk road network and would press government to ensure that the necessary funding is available to support the individual study recommendations.

3.4.1 Small Scale Network Enhancements

The funding of many network enhancements are not subject to delays of planning and securing large tranches of private sector funding. These can make a real difference to flow conditions affecting many of the bottlenecks and congestion hotspots on the network.

Where lane widening, junction improvements and provision of extra lanes can be undertaken to bring immediate relief, these should be fast-tracked and the necessary funding made available.

3.4.2 Roadside Telematics

Improving the flow characteristics of key sections of the motorway network using roadside telematics to regulate driver speed and ensure better anticipation of delays ahead have resulted in improved overall traffic speeds and a greater consistence of journey time.

Real time information of traffic conditions helps make the very best of the transport infrastructure that we already have. Sufficient investment should be available to extend the use of telematics to further sections of the network and enable operators to integrate this information into their transport management and logistics planning software.

3.5 Network maintenance

The steady deterioration in the condition of the UK road and rail network as a result of previous under investment creates unreliability for trains and road vehicles where maintenance in still needed and severe disruption to services when remedial, and often extensive, work is carried out.

The accelerated programme of rail maintenance which began following the Hatfield accident and the scale of disruptions which continue to result from this work underlines the scale of the task of bring the quality of the existing railing infrastructure up to an acceptable condition.

The poor condition of the UK road network is evident from the Government's National Road Maintenance Condition Survey. While improvements in the condition of trunk roads from the mid-1980's to the mid 1990's have been sustained, the condition of non-trunk roads continue to decline. The 2000 Survey found their condition at their worst ever level, reflecting a pronounced deterioration in the condition of urban roads.

FTA welcomes the addition money committed to tackle the maintenance backlog. Nonetheless significantly more additional money is needed to bring the local authority road maintenance programme back on course.

FTA has real concerns regarding firstly the proportion of monies allocated but not spent by highway authorities on road maintenance and secondly the increasing proportion of maintenance spending consumed by personal injury claims fuelled by the cumulative effects of years of under funding of road maintenance.

Road maintenance funds allocated to highway authorities should be ring fenced and that those funds should be protected from personal injury claims for a period of years. This would create a virtuous rather than vicious circle allowing a breathing space to improve road condition in order that future claim levels are manageable.

Last updated: Wed Jul 21 14:21:29 2004