HERTFORDSHIRE COUNTY COUNCIL
Agenda Item No.
HIGHWAYS & TRANSPORT CABINET PANEL
TUESDAY 9 SEPTEMBER 2008 AT 10.00 AM
5
REGIONAL FUNDING ALLOCATION ADVICE
Report of the Director of Environment
Author:
Trevor Mason
Tel: 01992 556117
Executive Member:- Stuart Pile (Highways, Transport and Rural Affairs)
1.
Purpose of Report
1.1
The purpose of this report is to inform the Panel on the current round of
Regional Funding Allocation advice, and to seek its views on the key
objectives that the County Council should pursue through the regional process.
2.
Summary
2.1
Government has requested the regions to provide advice on how the Regional
Funding Allocations for the period 2008/09 – 2018/19 should be distributed.
This advice will be submitted by the East of England Regional Assembly by the
end of February 2009.
2.2
The Regional Funding Allocation for transport currently covers major schemes,
but from 2011/12 the block allocations in the Local Transport Plan will also be
included.
2.3
The overall level of funding for major schemes remains at current levels, and
will only increase by 2% per annum.
3.
Recommendations
3.1
The Panel is asked to comment on the objectives set out in Section 10 for the
County Council to pursue in the development of the regional advice on RFA.
4.
Background
4.1
The Regional Funding Allocation (RFA) process is a key mechanism for local
authorities to secure funding, particularly for major transport schemes. A new
scheme such as a bypass will not receive government funding unless it has
been approved through the RFA process.
4.2
Government is now seeking advice from the regions on how the RFA for the
period 2008/09 – 2018/19 should be spend. Detailed guidance was published
on 30 July 2008. (1)
4.3
A key change is that RFA is being extended to cover Local Transport Plan
block allocations from 2011/12 onwards.
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4.4
Regional Funding Allocations cover transport, housing and regeneration, and
economic development. This paper covers the transport element only.
5.
Regional Advice
5.1
The Government have requested the advice from Regions on how the
Regional Funding Allocations (RFA) for the Comprehensive Spending Review
(CSR) period 2008/09 – 2010/11 and the indicative allocations up to 2018/19
should be utilised. This follows a previous request for advice on the CSR
2005/06 – 2007/08 period, submitted by EERA in January 2006.
5.2
EERA will submit the advice after consultation with EEDA. The deadline for
submissions to Government is the end of February 2009. In order to achieve
agreement of the region’s overall RFA advice through the various regional
bodies by this deadline, the transport elements will need to be signed-off at the
Regional Transport Forum meeting on 9 February 2009.
5.3
Whilst the Regions are invited to provide advice, the final allocations to
schemes or geographic areas will still be decided by central government.
5.4
Advice on priorities for 2009/10 to 2013/14 should be “firm, and focused on the
selection of deliverable, costed schemes with predictable start dates”.
5.5
For schemes in the period 2014/15 to 2018/19 the DfT expects to give a
further opportunity to develop priorities in Spring 2009 once the outcome of its
Towards a Sustainable Transport System policy review has been published.
6.
Transport Elements
6.1
The transport element of RFA covers local authority major schemes (>£5
million) and Highways Agency schemes that are of regional significance. It
does not include nationally-important Highways Agency schemes or Network
Rail schemes.
6.2
A significant change for this round of RFA advice is that Local Transport Plan
block allocations will be included from 2011/12 onwards. The block allocations
cover transport schemes costing less than £5 million and capital maintenance
schemes, and are currently awarded direct to individual local authorities.
Allocations up to 2010/11 have already been announced through the Local
Transport Plan settlements, and these will not be amended by RFA.
6.3
The level of block allocation of funding is significantly larger than that for major
schemes. For the period 2011/12 – 2018/19, the total block allocations for the
East of England are £1496 million, compared to £908 million for major
schemes.
6.4
It is not yet clear what the implications will be of including the block allocations
within RFA. The effect will depend upon how involved the region wishes to be
involved in deciding allocations to individual authorities, and on whether it
wishes to recommend any transfer of funding from the block allocations to
major schemes.
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6.5
The advice also states that regions may also wish to set out in their RFA2
advice their priorities for the development of regionally significant rail options
through the Towards a Sustainable Transport System process and towards
RFA3.
7.
Available Funding
7.1
The total level of funding that is indicatively available to the East of England for
transport is set out in Table 1 below.
7.2
The level of funding is based on current levels and increased at 2% per
annum. Thus there is no real increase from current funding provision.
Table 1
RFA Transport Allocations
Indicative Funding for East of England
Year
Major Schemes
Block Allocations
(£m)
(£m)
2008/09
98
*
2009/10
100
*
2010/11
103
*
2011/12
105
174
2012/13
107
178
2013/14
110
181
2014/15
112
185
2015/16
115
189
2016/17
117
193
2017/18
120
196
2018/19
122
200
* block allocations are covered by current Local Transport Plan
announcements to individual authorities until 2011/12.
8.
Current East of England Advice
8.1
The East of England advice on RFA1 was submitted in January 2006 (2).
Schemes were divided into priority bands 1, 1a, 1b, 2 and 3, of which only 1
(committed schemes) and 1a were formally submitted. Priority bands 1b, 2 and
3 are maintained as reserves of schemes which may form the basis of
subsequent RFA advice.
8.2
As regards Hertfordshire schemes, the RFA1 advice included Baldock Bypass
as a committed scheme and Croxley Rail Link and Watford Junction
Interchange as 1a schemes.
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8.3
Other Hertfordshire schemes not submitted as RFA1 advice but maintained on
the regional list are:
Priority List 2:
 Little Hadham Bypass
Priority List 3:
 A10 Royston
 A120 Standon
 A414 Gascoyne Way, Hertford
 A414 – M11 link Road
 Gunnels Wood Road Roundabout
 A1184 Sawbridgeworth Bypass
 A505 Hitchin to Letchworth
 A120 Bishop’s Stortford Bypass Dualling
 County Telematics Strategy
 A602 Ware to Stevenage
These schemes accord with the future transport priorities included in HCC’s
Local Transport Plan.
9.
Development of Hertfordshire Major Schemes
9.1
The current status of Hertfordshire’s three major schemes that are currently
being pursued through RFA (i.e. Croxley Rail Link, Watford Junction
Interchange, and Little Hadham Bypass) is set out in Appendix 1.
9.2
The identification of future major schemes, including a review of the Priority 3
schemes listed above, will be informed by the output of the current
Hertfordshire Investment and Infrastructure Study (HIIS). HIIS has been jointly
commissioned by the County Council and the ten districts to determine the
infrastructure needs arising from the East of England Plan, including the
current infrastructure deficit. The study is split into two work strands, one of
which is looking solely at transport requirements. The consultants are due to
present the draft HIIS report to the Hertfordshire Infrastructure and Planning
Partnership (HIPP) of the 11 Hertfordshire planning authorities on 20 October,
with a final report by the end of December 2008.
9.3
The overall timetable for RFA and HIIS is set out in Appendix 2 to this report.
This shows that the outcome of HIIS in terms of current deficit and future
infrastructure needs will be available in time to feed into the RFA process. With
the allocation to transport within RFA already heavily oversubscribed, it is
unlikely that any new Hertfordshire schemes will be able to feed into the higher
priority regional lists. However, the HIIS output does provide an opportunity for
the County Council to ensure that its full future transport infrastructure needs can
be included in the overall regional lists, and to undertake further development
work on schemes before the review in Spring 2009 (see Section 5.5).
9.4
A scheme will not be considered for the higher priority regional lists until its
design is well advanced. Therefore investment will be required in scheme
preparation before any new scheme arising from HIIS or existing Priority List 3
schemes can have a chance of inclusion in the formal RFA advice to
Government.
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9.5
It should also be noted that the DfT’s advice is that for major road schemes
regions should assume an average of 4 to 5 years from the time the Major
Scheme Business Case is submitted to the time that DfT can commence
funding. The business case can only be submitted once there is a detailed
scheme design.
10.
Objectives for Hertfordshire in the RFA Advice Process
10.1
The current status of the Hertfordshire major schemes and development of
HIIS would suggest that the main objectives for the County Council in the RFA
advice process would be:
(a) to ensure that the Croxley Rail Link and Watford Junction Interchange
schemes are retained in the highest priority list, with a view to gaining
funding approval as soon as possible;
(b) to ensure that the Little Hadham Bypass scheme is moved up to a higher
priority list (on the current system this would be from Priority List 2 to
Priority List 1b) given that design work has now been undertaken;
(c) to ensure that any new scheme arising from HIIS is included in the regional
lists.
In view of scheme design requirements set out in Section 9 above, an
additional issue for the County Council is:
(d) to ensure that resources are made available to progress design work on
schemes so that they can be considered for inclusion in the higher priority
regional lists.
10.2
With regard to the block allocations it is not clear what the potential benefits
are of having a regional input into the decision making process. Further
clarification will be sought from GO-East on the possible implications but at
present it seems sensible to suggest that the current system of central
government allocations be retained.
11.
Financial Implications
11.1
This report has no direct financial implications. However, the advice that is
subsequently provided by EERA to Government could have a significant
implication for the level of capital funding for Hertfordshire transport schemes
over the period 2008/09 – 2018/19.
Notes
(1) “Regional funding advice: guidance on preparing advice” published July 2008,
available at www.hm-treasury.gov.uk.
(2) “Regional Funding Allocations – Advice to Government from the East of England”
– EERA, January 2006.
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Appendix 1 Current Status of Major Schemes
Croxley Rail Link
1.1
The Croxley Rail Link scheme involves the diversion of London Underground’s
Metropolitan Line from its current terminus on the suburban fringe of west
Watford to Watford Junction mainline station, via a new viaduct and the
currently disused Network Rail Branch line.
1.2
The scheme supports Watford’s new role as a Key Centre for Development
and Change within the London Arc and reinforces Watford Junction as a key
transport node of regional importance. The CRL will provide vital sustainable
access to the proposed Watford Health Campus major regeneration project
aimed at providing local and regional health services. The planning application
for the Campus has just been approved and it is important that the CRL is
brought forward within the same time frame.
1.3
The Croxley Rail Link is a longstanding priority at both local and regional level
being HCC’s LTP top priority and having Regional Funding Allocation Priority
1a status.
1.4
The Major Schemes Business Case submitted in February 2008 identifies an
outturn cost of £145.3m assuming:
 Construction window of 2012-14
 Inflation at 5.8% p.a. from 2007
 £13.8m risk (£9.7m at 2007 prices)
1.5
Whilst the Croxley Rail Link is needed to provide sustainable access within a
corridor that suffers high deprivation and requires grant aided regeneration,
HCC still has to lever in a minimum £25.8m contribution to the scheme.
1.6
The total funding will be made up of the following:
 £119.5mm DfT Grant via RFA
 £18.05m capital raised by HCC, but secured on the strength of a
guaranteed capital contribution and guaranteed revenue stream from LUL
over 25 years.
 £3.44m capital contributions from HCC, Section 106 & Partners
 £4.31m further capital contribution underwritten by HCC.
1.7
Once it has recouped its £4.31m underwritten capital, HCC will reduce the net
call on DfT funding via the RFA by passing on:


1.8
Surplus revenue from the fare box, which would enable further capital to
be raised for use on other eastern regional schemes
Additional capital contributions it manages to secure
The meeting of the Regional Transport Forum on June 30th recommended that
EERA should provide the necessary written approval for the rail link.
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Programme
MSBC Submitted
Programme Entry Status Confirmed
Pre Transport & Works Act
Application Consultations
Submit TWA
Public Inquiry
Secretary of State Approval
ECI Phase 1 Contract Award
ECI Phase 2 Contract Award
Completion
1.9
February 2008
Autumn 2008
Spring 2009
September 2009
February 2010
September 2010
September 2011
April 2012
January 2014
The DfT will fund 50% of scheme development costs after ‘Programme Entry’
status has been awarded, excluding costs associated with the TWA
application and inquiry. Appendix 4 shows the required funding from HCC for
Croxley Rail Link (£570k in 2009/10 and £1.4m in £2010/11) to take the
scheme through to contract award.
Watford Junction
2.1
The Watford Junction Interchange scheme provides a new, high quality,
passenger interchange, including additional car parking on the eastern side of
the station accessed via a new link road connecting Colonial Way with St
Albans Road. By providing more direct access from the primary route network
the scheme alleviates existing traffic congestion in the immediate vicinity of
Watford Junction and within the wider area, thereby benefiting bus operations
at the station as well as on the approaches to it.
2.2
The scheme is estimated at £25m (2008 price base) and provides substantial
benefit to cost ratio previously established in excess of 10:1.
2.3
The project received “Approval In Principle” status from DfT in 2004 and
Priority 1a status within the RFA. A strong working relationship has been
established with Network Rail and formal agreements are in place to develop
design.
2.4
The interchange scheme will also facilitate a second phase development to
take place involving a refurbishment of the main station and substantial
housing provision.
2.5
The draft Planning Application for the interchange scheme has flushed out
both interest and concerns from affected landowners who, as potential
developers, have taken competitive stances to maximise their position. As
such, progress with the scheme is dependent upon the unlocking of the
property issues through a series of property deals, which HCC’s property
agents will facilitate.
2.6
Should the property issues be resolved by Autumn 2008, a planning
application could be submitted in early 2009 with construction starting in late
2010/11 and 2011/12.
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A120 Little Hadham Bypass
3.1
During 2006/07 the County Council undertook an appraisal of a range of
solutions to the congestion and environmental problems at Little Hadham,
ranging from localised improvements in the centre of the village to new,
strategic east west routes, and alternative transport solutions. The outcome
was the identification of a strategy for the A120 between the A10 and Bishop’s
Stortford, which envisaged on line improvements, where possible, to bring the
route up to modern safety standards and providing appropriate capacity whilst
minimising adverse environmental impacts. Local bypasses however would be
promoted from Little Hadham and then Standon.
3.2
A range of route options for the Little Hadham Bypass were identified and
taken to public consultation in March 2007. The County Council reviewed the
findings of the consultation, and an ‘outer northern’ route was endorsed as the
preferred corridor for the bypass in September 2007, with the request that
further detailed investigation and design be undertaken to determine the
alignment at each end of the bypass route. This additional work was
completed in March 2008 and the optimum alignment arrangements for the
western and eastern tie-ins for northern corridor were determined by Cabinet
in June 2008.
3.3
A Major Scheme Business Case is being prepared for submission to DfT in
2009. The earliest construction window, subject to funding, is 2013-15.
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Appendix 2 RFA and HIIS Timetable
HIIS
Sept 08
Oct 08
Presentation of draft
strategy to HIPP
RFA
Consultants
appointed by EERA.
17th – Regional
Transport Forum
meeting.
Consultants complete
information gathering
exercise with local
authorities by end of
October.
Nov 08
Dec 08
Spring 09
Planning + External
Relations Panel (14th)
HIPP (20th)
Planning + External
Relations Panel (11th)
Highways and
Transport Panel (4th)
HIPP (6th)
Planning + External
Relations Panel (9th)
15 December – final
report to be
published.
Jan 09
Feb 09
HCC*
Planning + External
Relations Panel (13th)
Highways and
Transport Panel
(13th)
9th February – RFA
advice considered by
Regional transport
Forum.
Mid February Advice signed off by
RPP, RPG and
EEDA.
27 February – advice
submitted to
Government
DfT to provide
opportunity to review
RFA advice once the
“Towards a
Sustainable
Transport Strategy”
policy review has
been published.
Planning + External
Relations Panel (7th
April)
Highways and
Transport Panel (3rd
March)
* HCC dates show where there is opportunity to discuss RFA issues. Papers are not
currently planned for all of these meetings. It may also be appropriate to arrange a
joint meeting between the planning and transport panels.
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