Contact: Jonathan Crabb, ext 6047

1. Summary

1.1 The County Council's Environment Capital Programme was approved by the Executive Member for Environment on 24 January 2003. The report included a revised integrated transport programme for 2002/03, a new programme for 2003/04 and proposed that all other integrated transport schemes be reassessed for possible inclusion in the 2004/05 programme (see attached appendix for New Forest Transport Strategy (NFTS) and Coastal Towns Transport Strategy (CTTS) schemes).

2. Background

2.1 Hampshire County Council's first full Local Transport Plan (LTP) was produced in July 2000. It set out county-wide and area strategy objectives and targets, and a proposed five year plan for transport investment. The Government settlement letter, in December 2000, acknowledged Hampshire's LTP as one of the best in the country. The settlement letter allocated funding levels, definite for 2001/02 and indicative for the other four years of the programme.

2.2 The funding allocated under the new LTP system is at a much higher level than previously for integrated transport, and is no longer ring-fenced for certain topics or areas. For 2001/02 two years were available to spend the allocated funding money, but from 2002/03 the Government has moved to a one year spending regime.

2.3 The combination of the above factors has led to integrated transport spending as set out in the table below. Integrated transport spending includes investment in area transport strategies, casualty reduction and county-wide programmes.

Government Funded County Council Capital Expenditure on Integrated Transport

Year	Spending (£'000)
1998/99	2,894	Actual
1999/00	2,545	Actual
2000/01	4,936	Actual
2001/02	7,775	Actual
2002/03	18,600	Planned
2003/04	14,393	Maximum

2.4 The above table does not include expenditure on accepted major transport schemes (over £5 million) as these are separately funded, but does include preparatory and all other costs until a scheme is accepted by the Government.

2.5 The 2002/03 figure is particularly high because funding was carried forward from 2001/02. Such a carry forward is no longer allowed and from 2003/04 onwards funding is expected to be in line with the LTP settlement awards.

3. 2002/03 Programmes

3.1 The initial 2002/03 programmes for area transport strategies were set at a high level so that there was a good chance of achieving the spending target even if, for any reason, schemes were delayed. The County Council also wanted to be in a position to take advantage of any additional funding that might become available in 2002/03 or 2003/04 by having schemes prepared. It was also proposed that the A3 Bus priority scheme in Havant district would be taken up by the Government as a major scheme from 2003/04. It was important therefore to have enough schemes ready to take advantage of any funding released, should the A3 costs be covered elsewhere.

3.2 In the event, progress in 2002/03 has been such (together with increased consultation and construction costs of ongoing schemes) that the County Council had committed (by December 2002) sufficient projects to cover the £18.6 million available for 2002/03 spending. It has therefore been necessary to limit the 2002/03 programme to a total value of £18.8 million and defer the remainder of the programmed schemes to a 2003/04 or later start year. The implication for the timing of NFTS and CTTS is set out in the attached appendix.

4. 2003/04 Resources and Programme

4.1 The County Council has been allocated £14.39 million for transport but, as yet, a decision by the Department for Transport on funding the next phase of the A3 bus priority project as a major scheme has not yet been decided. It will be necessary to accommodate any new A3 work from the £14.39 million, as well as an expected £8 million of commitments carried forward from 2002/03, alongside the new 2003/04 programme spend and the preparation costs of future schemes.

4.2 The consequence is that the funding available for schemes programmed to start in 2003/04 has been set at £9.39 million. Some of these schemes will be put on hold to start late in the year so that spending is kept within the allocation level pending a decision on the A3 scheme. The 2003/04 NFTS and CTTS programme, which includes developer and other externally funded schemes, is set out in the attached appendix.

5. 2004/05 and Beyond

5.1 No programme has yet been prepared for 2004/05. The Executive Member for Environment has requested that all schemes in the previous four year capital programme (but now not programmed in 2003/04 or before) are assessed in terms of their likely contribution towards LTP and corporate objectives. Following this assessment a report will be presented to the Environment Policy Review Committee on 9 July 2003 setting out a revised Capital Programme for each of the strategy areas.

5.2 In order to keep transport spending within limits in 2002/03 and 2003/04 it has been necessary to reduce the programme in both years. The 2002/03 programme now comprises essentially schemes already contractually committed by January 2003. There is a large spending commitment in 2003/04 from the 2002/03 programme and so only a limited programme can go forward in 2003/04. In 2003/04 priority has been given firstly to casualty reduction schemes and safer routes to school (£1.9 million) and the MIRACLES project in Winchester, specifically identified for support by the Government (£880,000). Within Area Transport Strategies priority has been given to ongoing projects which potentially will give a good return in terms of progress towards policy objectives. It has been possible to include at least one LTP funded scheme in each strategy area and these are all projects deferred from 2002/03, except Decriminalised Parking Enforcement in Eastleigh (£175,000), a reduced first year investment of £50,000 in Romsey Road, Winchester and the making permanent of a scheme in Bishop's Waltham (£40,000). Unfortunately, it has not been possible to accommodate all the deferred schemes in the new 2003/04 programme. The Executive Member for Environment has asked for all the schemes not included in the 2002/03 or 2003/04 programmes to be reviewed so that a new 2004/05 programme can be prepared. Panel Members' views will form part of the review process.

6. Scheme Preparation and Design 2003/04

6.1 It is proposed that preparation work, including consultation and feasibility design, on some schemes already being progressed should continue. Within the funding to be made available it is suggested that work on the following NFTS and CTTS schemes be continued:

New Forest (NFTS)

(i) NF cycle plan (Lyndhurst-Ashurst)

(ii) Lyndhurst Village cycles

(iii) Ringwood pedestrians and cycles

Coastal Towns (CTTS)

(i) Lymington Southern Access

(ii) Priestlands School Cycle link

7. Review of the Area Transportation Strategy Panels

7.1 There is to be a review of the way transport planning and investment is organised in the county to take account of developments with the regional transport strategy and sub-regional transport, economic and development planning approaches. It is proposed that this review is carried out during 2003, including consultation with district councils, and proposals presented to the Area Transportation Strategy Panels in the autumn, with any new arrangements being introduced in 2004.

8. Summary of Position

8.1 Government funded support for integrated transport, ie area transport strategy schemes, safety and county-wide programmes, remains high (£14 million per year). However, the over-commitment in 2002/03, resulting from the need to reach the spending target, and the fact that the A3 has not yet been accepted as a major scheme, means that the new 2003/04 programme is much less than originally proposed. Resources are expected to continue at about £14 million per year and a new programme for 2004/05 will be produced following a reassessment of all schemes in the early part of 2003. Future programmes are likely to be affected by the County Council's review of its approach in the light of developments at the regional and sub-regional level, and the Area Transportation Strategy Panels.

Recommendations

1. That this report be noted.

2. That the New Forest and Coastal Towns Strategy schemes for 2004/05 and beyond be considered as part of the county-wide review of Transportation Strategy Areas to be presented to the Environment Policy Review Committee on 9 July 2003.

7825/JC

APPENDIX

New Forest Transport Strategy (NFTS)

Revised Transport Capital Programmes 2002/03 and 2003/04

Coastal Towns Transport Strategy (CTTS)

Revised Transport Capital Programmes 2002/03 and 2003/04

KEY:

50 change of year (2002/03 to 2003/04)

50 scheme deferred

+ partly externally funded

* externally funded

_ in 2004/05 and beyond pool